Thabazimbi municipality will not be held ransom by the ANC

5 October 2016

Jacques Smalle, DA MPL and Spokesperson for GOGHSTA (Department of Cooperative Government, Human Settlement and Traditional Affairs), said today, Wednesday 5 October, in a media release that the DA will write to The Auditor General to request an audit in terms of Section 5(1) of the Public Audit Act, no 25 of 2004, into the financial implications of the hare-brained move by the MEC for COGHSTA, Makoma Makhurupetje, to withdraw grant funding from National Treasury in the amount of R25 million from the cash-strapped Thabazimbi municipality.

This vindictive decision was made by MEC, Makoma Makhurupetje, following the decision by the new coalition government not to be managed by the current administrator.

In August 2015 the MEC deployed her department’s CEO, PRM Khunou, as financial specialist to rescue the municipality.

Instead, the municipality’s grim finances deteriorated under Khunou’s watch. No effort was made to meaningfully engage with service providers and creditors in an attempt to settle the municipality’s debt which was in excess of R320 million.

The damages incurred in interest charged and legal fees could have been drastically limited if the administrator and officials were proactive and responded honestly and without ulterior motives to the municipality’s financial woes.

The Sheriff already executed 2 warrants to the sum of R5 543 806 and attached and removed all movable assets including desks and computers from the municipal building shortly after the election which left the administration paralysed.

The DA will not allow the ANC to hold Thabazimbi municipality ransom and we will liaise with the new coalition government not to give in to vengeful demands.

“We will hold the MEC accountable for this brash decision and will obtain a legal opinion on whether of the MEC’s deliberate lack of financial support which is necessary to stabilise service delivery in the embattled Thabazimbi municipality can be dealt with as financial misconduct as set out in sections 168 & 175 of the Municipal Finance Management Act, 56 of 2003.” Smalle said.