Bankrupt municipality to receive R70 million bailout

The financially troubled Modimolle-Mookgophong Municipality is liable to receive R70 million for business continuity and provision of basic services on condition that Limpopo’s Executive Council (Exco) adopts a resolution on the institution of a forensic investigation into the alleged corruption and mismanagement in the municipality.
The release of funding was reportedly approved by the Exco during a meeting held last Wednesday.
Information made available to Polokwa­ne Observer highlighted that the Exco also resolved that government departments should implement preventative measures to avert the occurrence of unwanted expenditure and should also develop measures to curb excessive accruals and payables with specific emphasis on the Departments of Education and Department of Health.
Departments were further instructed to establish Financial Misconduct Boards to deal with all matters of non-compliance with prescripts to support the accounting officers to institute consequence management measures where applicable, it was learnt.
The statement further informed that the council has approved the 2018 Mapungubwe Arts Festival funding model and implementation arrangements on condition that the Department of Sport, Arts and Culture implements its programme of build-up activities and events within the R7 million budget and that no additional funding be sought for the event.

Story: ENDY SENYATSI
>>endy@observer.co.za