Tax money used to pay for DStv subscriptions of local government officials

The North West Provincial Legislature’ Standing Committee on Provincial Public Accounts (SCOPA) wants answers from the Madibeng Local Municipality about irregular expenditure.

Success Marota, an executive at the Auditor-General’s North West branch, said the municipality acquired the fourth consecutive disclaimer audit opinion due to lack of sufficient appropriate audit evidence.

Marota said there are no consequences for financial misconduct and transgressions in the municipality despite sufficient evidence of wrongdoing.

Some of the problems highlighted by Marota following virtual Municipal Finance Management Act public hearings include:

  • Madibeng Municipality paid for DSTV and clothing accounts from the municipal bank account.
  • There is significance reliance on consultants to prepare annual financial statements although the municipality has 134 staff members at its budget and treasury office.
  • The municipality acquired a loan of about R1.1 billion from the Public Investment Corporation which was never disclosed on the financial statements.
  • There is a lack of documentation on many contracts in the municipality which never went into proper tender processes.
  • The municipality is failing to pay its creditors on time which include electricity and water boards.
  • There are allegations that the municipality leased vehicles for R1 billion but has no plan to fix the problem.
  • There are no consequences for people who transgressed supply chain management policies.
  • Officials implicated in corrupt activities or matters such as VBS were suspended for a short period but are later reinstated.

The Provincial Public Accounts Chairperson, Job Dliso, said Madibeng Municipality should submit a detailed report on the payments of DSTV and clothing accounts paid from the municipal bank account.

The names of officials implicated in the DSTV and clothing accounts must be listed and the municipality must state what actions have been taken against them.

“We cannot allow public money to be used for personal interests,” Dliso said.

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Tax money used to pay for DStv subscriptions of local government officials