Polokwane municipality cuts consultant costs to boost services

A Limpopo municipality has heeded the call by Auditor-General (AG) Tsakani Maluleke to minimise the use of consultants in an endeavour to cut costs and intensify service delivery.

The Polokwane municipality, the richest, with an annual budget of over R6 billion, cut ties with Minatlou Future Fleet Management Services last month in an endeavour to save funds to improve service delivery to its nearly one million population.

The company had a six-year contract with the municipality to provide a municipal fleet through Standard Bank.

Costing R48m annually

The service included the provision of fuel for the fleet, costing the council R48 million annually, Saturday Citizen was told.

Now, after the appointment of the new mayor, John Mpe, the municipality said it would be able to save R1 million each year.

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Mpe, who is wearing three hats as mayor for the Polokwane municipality, ANC Peter Mokaba regional chair and Limpopo chair for the South African Local Government Association (Salga), said the move was aimed at heeding the call by the AG and Salga.

They have been advising municipal councils to cut the middlemen out in an effort to save municipal funds and strengthen service delivery to communities.

In the 2019-2020 financial year, 27 municipal councils in Limpopo spent a total of R249 million on consultants.

The following financial year (2020-21), the province’s 25 councils spent R263 million on consultants.

“By transitioning to a direct agreement with Standard Bank, we have not only reduced costs but also gained improved control over our fleet management system.

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“This new arrangement ensures better monitoring of fuel usage, thereby preventing abuse and ensuring greater accountability,” said Mpe.

Limpopo 3rd biggest spender on consultants

Limpopo is the third-biggest spender on consultants after KwaZulu-Natal and North West provinces.

The province spent more than R1.13 billion on consultants as per the AG’s report on 31 May, 2023.

Five municipalities in the province were listed as the main culprits for the R1.68 billion in irregular expenditure.

These were Mopani and Vhembe district municipalities and Polokwane, Mokgalakwena and Maruleng local municipalities.

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Municipalities in the province, according to the AG’s report, had unauthorised expenditure of R2.57 billion and fruitless and wasteful expenditure of R160 million.