Note to Editors: Please find attached English and Sesotho soundbites by Cllr Hismajesty Maqhubu
Tokologo Local Municipality continues to lose millions of rands annually through irregular expenditure on contracted services, a crisis repeatedly flagged by the Auditor-General as one of the municipality’s largest leakages of scarce public funds.
According to the Auditor-General’s latest findings, Tokologo’s spending on contracted services has become the single biggest drain on its already fragile finances, with numerous service providers operating without service level agreements (SLAs) or memoranda of understanding (MOUs) in place. This means the municipality is paying for services without enforceable performance standards, accountability mechanisms, or legal protection for residents.
One of the most alarming examples is the long-running contract for a drain truck (honey sucker), a basic sanitation service that costs Tokologo over R2 million every year, despite no competitive bidding process ever being undertaken. This is a textbook case of irregular expenditure and a direct violation of the Municipal Finance Management Act (MFMA).
The Democratic Alliance Councillor responsible for oversight recently conducted a market comparison and discovered that Tokologo is paying more than double what it would cost to own a brand-new truck outright. A new FAW JK6 15.220 FL 8000L Septic Tank Truck, complete with a standard 2-year unlimited mileage factory warranty, is priced at:
- R1 029 250 for a manual model
- R1 249 250 for an automatic model
This means Tokologo could purchase its own truck for half the annual cost of the current irregular contract, and still save millions over the lifespan of the vehicle.
The justification previously given to Council was that the municipal fleet had become “too expensive to maintain” due to over-aging. Yet the municipality has never presented a cost-benefit analysis, nor has it demonstrated that outsourcing at inflated prices is more economical than replacing outdated fleet assets.
This pattern of mismanagement reveals a deeper governance failure: Tokologo is outsourcing core municipal functions at exorbitant prices, without contracts, without oversight, and without protecting the public purse. In a municipality already struggling with revenue collection and service delivery backlogs, these irregular expenses directly undermine the rights and dignity of residents.
Tokologo cannot continue to operate as a municipality where irregular expenditure is normalized, oversight is ignored, and public funds are treated as disposable. The community deserves transparency, accountability, and a financial recovery plan that stops the bleeding and restores trust.
The DA calls for immediate action:
- A full investigation into all contracted services flagged by the Auditor-General
- Immediate suspension of irregular contracts without SLAs
- A costed plan to rebuild Tokologo’s municipal fleet
- Consequence management for officials who approved unlawful expenditure
Tokologo’s residents deserve a municipality that protects their money, not one that wastes it.