Vhembe municipality must be placed under administration

Jacques Smalle (MPL)

DA Limpopo Provincial Leader:

The DA has written to MEC for Cooperative Governance in Limpopo, Makoma Makhurupetje , to urgently evoke section 139 (1) of the constitution to Vhembe District Municipality for failing to manage their financial affairs.

The DA has noted the unacceptable conduct by the municipality to utilise the Municipal Infrastructure Grant (MIG) to pay salaries of the employees instead of applying the funds for the intended purposes.

According to the PFMA and MIG policy , these grants cannot be used to finance operational expenditure other than the prescribed to the percentage permitted for the operation of project costs.

Last year, the municipality failed to compile the financial report timorously and refused to  return R167 million back to National Treasury due to under spending.

The vexatious disregard of the PMFA regulations resulted in Treasury holding a portion of their equitable share which led to non-payment and/ or late payment of creditors.

The municipality received two consecutive disclaimer opinions from the AG report. The payment of councillors ahead of officials clearly illustrates the ANC’s self interest above service delivery to Vhembe.

An estimated R139 million cannot be accounted for and is being regarded as an irregular expenditure by AG. The municipality further spent R4.2 million on consultants whereas service delivery is still a nightmare.

Section 56 managers such as Municipal manager , CFO , infrastructure general manager and community service general manager are still vacant.

It is clear that urgent intervention is needed to accelerate services to the people in Vhembe. The DA has already requested MEC Makhurupetje to establish a forensic investigation into the financial affairs of the Municipality.