During May this year, a Status Quo Report issued by National Treasury was made available to Mafube Business Forum (MBF) which reflects the current state of affairs at Mafube Local Municipality (MLM). The findings captured in this report are absolutely shocking and vindicate MBF’s ongoing legal actions against the Premier of the Free State province and those who must be held accountable for the crisis at MLM.
Below are just a few of the adverse findings which speak of incompetence, poor leadership, lack of accountability and consequence management:
• MLM forfeited R18 977 790 by not using it for the purpose for which it was granted. This amount will now be deducted from the "Equitable Share Grant" which is actually intended to bring relief to the poor. • Municipal officials and councillors owe R544 999 in unpaid municipal service fees. Treasury attributes this to lack of accountability. • MLM owes the employees’ pension funds R162 639 939.59 as on 30 June 2022. This has meanwhile increased because payments are still not made and interest is charged. • R504 952.98 of fees paid in by residents and businesses cannot be allocated to specific account holders and accounts cannot therefore be credited correctly. • Unauthorised expenditure increased by 61.8%. • Fruitless and wasteful expenditure increased by 34% to R211 127 265 • Interest alone on MLM's debt amounts to R53 564 862
Also of concern is that MLM, as pointed out in the report published this week by the Auditor-General, either submitted their financial statements late, or not at all. This, despite the fact that the province took over the obligation and that there were a number of officials and consultants appointed (at high cost) to fulfil this function and to ensure that MLM meet legal requirements.
The above confirms that the Council of MLM and provincial intervention have failed. MBF is currently considering taking further legal action which is likely to include personal costs orders to impose liability on the officials involved.
MBF will make the Status Quo and Auditor-General reports available upon request. Visit our offices at 18A Church Street, Frankfort on Mondays to Thursdays from 08h30 to 16h00 and Fridays 08h30 to 12h00. Call or send a WhatsApp message to Marina on 079 145 4295. Visit our website www.mafubebf.org and follow us on Facebook. #mbf #mafubebusinessforum #mafubebesigheidsforum #mafube #Vrystaat #freestate #statusquo