R29-million power theft shock

While Endumeni Municipality again received a ‘financially unqualified audit report with other matters’, the huge loss of revenue from electricity theft and non-payment has cast doubt on the municipality’s ability to operate as a going concern.
This was revealed by the 2012/13 Auditor General’s report, presented by Jonathan Soobramoney at last week’s special Council meeting, which again had to be called off due to a lack of a quorum.
Only five councillors arrived for the meeting. The ongoing stand-off between the three DA councillors and three ‘rebel’ ANC councillors on the one side, and the remaining three ANC councillors, two IFP councillors and lone NFP member on the other side, has rendered the Council impotent.
Mayor Mahaye was also absent, but forwarded his apology. Councillor Anthon Raubenheimer later stated that he and his two DA colleagues had also submitted their apologies.
This ongoing dispute arose after a decision was made to uplift the suspension of Municipal Manager TP Biyela – a decision which was made without a quorum, according to MEC Dube.
While Mr Soobramoney could not formally present his report to the Council, a copy given to the Courier paints a picture of a once-strong municipality slowly dwindling away.
Over R29-million in electricity was stolen and/or lost from the municipal grid between July 2012 and June 2013, representing 27,28 kilowatts of power.
Intimidation of those sent in to disconnect illegal connections, and a lack of political will to clamp down on offenders, have been blamed for the huge losses.
This and the loss of revenue from electricity have made the municipality financially vulnerable.
The report also refers to the alleged misappropriation of cemetery revenue, which resulted in the resignation of an employee and the recovery of money. It is not known how much was stolen.