Note to editors: Please find attached an English soundbite by Cllr Moshe Lefuma and Sesotho by Karabo Khakhau MP.
An Auditor General Report revealed financial mismanagement by Phumelela Local Municipality, indicating heavy reliance on government grants to deliver essential services. It is evident from the report that significant losses are being incurred in electricity and water provision, representing a failure to effectively manage resources and collect revenues owed.
The report highlights material losses, including 4,555,882 kWh of electricity (37% of total units purchased) and 3,028,625 megalitres of water (77% of the total). These losses stem from various factors such as technical issues, faulty meters, theft, and vandalism, underscoring systemic inefficiencies in infrastructure and security.
Furthermore, the municipality’s fruitless and wasteful expenditure amounting to R 15,582,902, coupled with outstanding debts of R 160,643,314 owed to the Department of Water and Sanitation and R 186,161,295 owed to Eskom, raise serious concerns about financial mismanagement and accountability.
These findings underscore a worrying trend of fiscal irresponsibility within the ANC-led municipality, where essential services are provided without adequate revenue collection, leading to mounting debts and operational deficits.
In response, the Democratic Alliance (DA) reiterates its call for accountability and transparency in municipal governance. We previously urged the Speaker to enforce accountability measures, including requiring councillors to submit service statements to assess their payment status. However, our concerns were dismissed, and excuses were made. The recent report reveals that ANC councillors are also defaulting on payments, with arrears amounting to R 247,355.
Therefore, the DA will escalate this matter by once again writing to the Speaker, urging an investigation into councillors who are in arrears with municipal accounts, as this constitutes a breach of the Code of Conduct for Councillors. Section 15 empowers the Speaker to initiate investigations into such breaches, and we expect decisive action to be taken.
Furthermore, we call upon the municipality to provide a clear and comprehensive plan to address the escalating losses in electricity and water, as well as the outstanding debts. Proactive steps must be taken to rectify these issues and ensure the efficient delivery of services to the community. We are committed to bringing change across the country and therefore urge all residents to vote in the 2024 National and Provincial Government elections on 29 May.