Note to Broadcasters: Please find attached soundbites in English and Afrikaans by Johannes le Grange
The DA will submit the independent investigator’s report on financial mismanagement in Matlosana to the Ministry of Local Government and ask the President to hand this blatant disregard for accountability to the Special Investigating Unit (SIU) to get to the root causes of the municipality’s decline.
The City Council of Matlosana, during a special council meeting on the 24th of October 2024, authorised the acting municipal manager to appoint an independent investigator to investigate various allegations against the CFO. Following this appointment, the independent investigator revealed, during a special council meeting on the 12th of February 2025, fraud worth R292 million in the most shocking report in the history of Matlosana. Several duplicate and triplicate payments were made to notorious service providers. Several payments were made without invoices nor Goods Received Notes (GRN) documents. Several payments were in excess of the invoice amounts with no consequences for the service provider.
Furthermore, it was revealed that a paraffin service provider was paid R6.2 million using the same order number twice, which resulted in a loss of R6.2 million to the municipality. Some payments were made to companies without a contract with the municipality. Payments were made to a tax consultant where the contract expired 18 months ago, and to cover up, they extended it with a Regulation 36 appointment. No proper supply chain management (SCM) procedures were followed, like awarding and paying construction companies that owe the municipality thousands of rand on water and electricity.
The Municipal Manager, who should oversee internal control over all transactions, once again was found sleeping on the job, as this duplication of payments is in excess of R292 million. The CFO, who should oversee order numbers, delivery bills, checklists, and authorise payments, takes advantage of the system to act without oversight, authorising multiple payments on the same invoice on the same day.
The Provincially seconded Provincial Executive Representatives are complicit in all this, as these malfeasances have happened within the first three months of their arrival. They could not identify a single transaction for scrutiny, and their internal control measures have borne no fruit. It has become quite evident that internal audit, the audit committee, MPAC, nor the EM, nor the Premier can stop the epidemic of looting.
The ANC, led by Rose Thabanchu, the single whip, tried unsuccessfully to get the report rejected, blaming the Acting MM for exceeding the scope of the investigation. This is notwithstanding the fact that the report, beyond reasonable doubt, demonstrates maladministration regarding the double payment to the paraffin contractor. It is a common fact that the ANC councillors are captured by the CFO to protect her and vote in a particular fashion.
The DA will not allow this corruption to continue. It will ensure that those responsible are held accountable. The people of Matlosana deserve a municipality that works for them, not for the corrupt.