The Lekwa Local Municipality (LLM) held an auction on June 26 to auction off assets like office furniture, IT equipment, machinery and vehicles.
Riley Auctions facilitated the auction. Ward 8 Clr Alberto Franco expressed the DA’s concern over the money raised through this event.
“The DA feels the municipality failed to be transparent with its finances and assets because the council is yet to be informed of this auction’s outcomes,” explained Franco.
The municipality allegedly made more than R6m from this auction.
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Considering the municipality’s devastating financial position, the DA feels Lekwa declaring and allocating the money to service delivery changes is crucial.
“The municipality’s reluctance to provide feedback indicates a disregard for accountability and responsiveness,” added Franco.
Franco explained how the LLM’s accounting model cannot support sustainable financial growth because of an ineffective and non-transparent accounting model.
The Auditor-General revealed that the municipality’s deficit for 2022/23 was over R600m.
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Franco believes residents deserve to know what damage “the municipality’s lack of credible financial reporting” caused.
“The DA will not allow this to continue any longer. We believe municipal manager Malosi Lamola should ensure finances are managed properly for the benefit of residents,” added Franco.
The DA called on Lamola to disclose the exact amount raised to the council, including a detailed report on what was sold and how the money would be allocated.
Lubabalo Majenge, the communications officer for the LLM, informed the media that the report is still being processed internally.
“It will go through all the internal municipal reporting channels as per procedure and, therefore, cannot be engaged in the media space.”
