Note to Editors: Please find attached English soundbite by Cllr Alison Oates, Afrikaans soundbite by Cllr Eleanor Quinta and Sesotho soundbite by Cllr Ana Motaung.
The DA in Maluti-a-Phofung has confirmed the authenticity of an internal memorandum, issued by the Municipal Manager, stating that employee salaries for July cannot be paid at this stage.
The withholding of Equitable Share allocations by National Treasury will have a catastrophic impact on the municipality’s cash flow. However, Maluti-a-Phofung has ignored basic financial management requirements for years.
Responsibility for this situation rests squarely with the Municipal Council. Breaches of financial management legislation are referred to the Municipal Public Accounts Committee (MPAC), chaired in Maluti-a-Phofung by Cllr Holley of the African Content Movement.
National Treasury’s guidelines make it clear that MPAC must investigate unauthorised, irregular, fruitless and wasteful expenditure, determine accountability, recover losses where possible, apply consequence management, and recommend corrective action.
During his tenure as MPAC Chairperson, Cllr Holley has recommended the write-off of a staggering R3.37 billion in unauthorised, irregular, fruitless and wasteful expenditure, with little more than a mild “please stop” or suggestions that officials may require further training.
Only three recommendations for corrective action were made.
One recommendation was that the former Mayor, Cllr Melato, repay R71 000 spent on wasteful advertising. However, when Council voted on the recommendation, Cllr Holley did not even support it, and the proposal failed to pass.
The only other two recommendations involving possible criminal conduct were not reported to the relevant authorities until the DA took the initiative to report the matters to the Hawks in June.
While the DA recognises the severe hardship that delayed salaries will cause municipal employees and their families, as well as the devastating impact this will have on service delivery, this crisis must serve as a wake-up call. The municipality cannot continue with business as usual.
For too long, the majority of councillors have dismissed the DA’s objections to budgets and council decisions as political point-scoring. Events have shown that sound financial management is not a political issue; it is a fundamental requirement for a functioning municipality.
It is therefore concerning that Cllr Holley continues to claim success as MPAC Chairperson. National Treasury’s assessment suggests otherwise.
The DA remains committed to strengthening oversight and accountability in Maluti-a-Phofung and is working hard to earn greater public support in the November local government elections.
For context, Maluti-a-Phofung has budgeted to receive R896 million in Equitable Share funding over the 12 months from July 2026. Its monthly salary bill is budgeted at approximately R70 million, although the actual figure is likely to be higher, as overtime expenditure has consistently exceeded budget.