LIMPOPO – The suspensions come after the forensic audit report for the last financial year from the Auditor-General (AG), Tim Makwetu, discovered a failure to manage municipal funds as R156 million was invested with VBS Mutual Bank as well as questionable payments made for projects without following relevant Municipal Finance Management Act (MFMA) procedures.
Audit investigations revealed several projects were not completed and remained ‘white elephants’ for years within the municipal jurisdiction.
This in spite allegations that some of the contractors had already been paid huge amounts of service fees even though the projects had not been completed.
The failure to complete the projects allegedly started after the municipality invested more than half of its R350 million annual operational budget with the controversial VBS Bank.
This was further triggered by allegations the officials failed to give account of how R64,4 million was spent on the abandoned and incomplete municipal civic centre built within the Giyani central business district.
This was compounded by a revelation from the AG which revealed the institution could not account for R40 million of wasteful and unauthorised expenditure for the 2016/17 financial year, R40 million irregular expenditure, and R20 million unauthorised expenditure. Municipal Spokesperson, Seven Mabunda, confirmed the suspensions and identified the officials as the Chief Finance Officer and Technical Services Director.
Mabunda said the two officials would face municipal disciplinary action at the municipal offices today (Wednesday).
DA councillor, Hasani Shivambu, said: “The government of Limpopo banks with Standard Bank but the officials chose to ignore the red tape and invest taxpayers’ money with the controversial VBS Mutual Bank. Now because of the investment, the municipality is unable to complete some of its projects. Soon they will be unable to pay the salaries of its employees due to these kinds of misconduct.
“That is why the DA will not stand back and allow the ANC-led administration to loot the public coffers instead of directing the people’s money towards basic service that would help fight rampant poverty, underdevelopment and the escalating joblessness in our communities”.
The EFF in Mopani said the suspension of the officials was the beginning of an exodus of all section 57 managers in the 15 municipalities that invested with VBS Mutual Bank.