Note to Editors: Please find attached English and Sesotho soundbites by Cllr Palesa Mpele and Afrikaans soundbite by Cllr Linda Louwrens
The Democratic Alliance (DA) in Moqhaka Local Municipality will demand the immediate overhaul of the indigent register, institute quarterly verification processes, and formally request consequence management against officials responsible for the continued mismanagement of indigent subsidies.
The Municipality’s 2024/25 Audit Action Plan highlights a deeply concerning finding: R26.7 million in overstated indigent subsidies, with service charges understated by the same amount. This means free services were granted to individuals who did not qualify, while genuinely indigent residents may have been deprived of support. Alarmingly, deceased individuals received R23.9 million in subsidies, government employees earning above the qualifying threshold received R423,074, invalid ID holders benefited to the tune of R2.2 million, and municipal suppliers and their spouses accessed subsidies despite having business interests.
Weak internal controls lie at the heart of this governance failure. The indigent register is verified only once every three years, systems permit applications without proper ID validation, and there is no cross-checking against government employment databases or supplier interests. This is a repeat finding from 2023/24, demonstrating management’s failure to implement corrective measures.
The effect on the community is severe: misallocated funds reduce resources available for deserving households, undermine revenue collection, and erode public trust. Representing 2.3% of potential annual revenue, this misdirection threatens financial sustainability and deepens inequality. Residents deserve accountability, transparency and fair access to municipal support.