The financial problems of the Mangaung Metro and its inability to fulfill its duties are growing year on year, despite senior officials being appointed in key positions.
Odwa Dudu, head of the Auditor-General’s (AG) office in Bloemfontein, presented a bleak picture on the financial situation of the metro and Centlec for the financial year that ended on 30 June 2024.
In the report presented at a council meeting on Friday, 31 January, Beukes Boshoff of the AG’s office mentioned a wide array of concerns, including the eroding of funds and future obligations.
One of the biggest concerns is the R297 million in conditional grants that was witheld by the National Treasury due to the slow implementation of projects.
Another huge concern is that 45% of next year’s budget will pay for expenditures incurred in previous years.
Only 28% of the activities contained in the Financial Recovery Plan for the Mangaung Metro, were fully implemented during the financial year in question.
Unauthorised expenditure has skyrocketed to R1,34 billion, irregular spending stands at R277 million, and fruitless waste totals R122,5 million.
“These funds should have been allocated to critical services, but have instead been squandered through corruption and incompetence, leaving residents and businesses paying for services they are not receiving,” says Dirk Kotzé, DA councillor, in response to the report.
He said this mismanagement results in widespread frustration and discontent amongst citizens.
“Water and sanitation projects are perpetually delayed or abandoned; roads are ridddled with potholes and prone to flooding; and waste collection services are failing again since Tuesday, 28 January,”
Dr Elizabeth Snyman-Van Deventer of the FF Plus commented in her response to the AG report that it is concerning that only 2% of the metro’s expenditure was for repairs and maintenance of critical service delivery.
Kotzé said the DA vowed to take decisive action to rescue Mangaung from financial mismanagement and poor service delivery.
“The report paints a damning picture of a municipality in crisis. The report reveals staggering financial mismanagement, including material misstatements, procurement irregularities, and widespread non-compliance with financial regulations.
“Investigations into fraudulent overtime payments, irregular tenders and unauthorised contract payments have yielded nothing but inaction.”
