Limpopo’s department of transport and community safety has refused to comment on the Greater Letaba municipality’s unbanked money collected at its driving licence testing centre between 2021 and 2023, believed to be over R1-million.
According to a preliminary report by Mphoke PK Attorneys, Inc., the law firm tasked with conducting a forensic investigation, money was collected from applicants paying for driving licences, renewals, and related services at the testing centre.
Instead of being deposited into the municipality’s accounts as required by law, the funds remained unbanked for a prolonged period.
The department spokesman, Matome Moremi Tauetsoala, said they are aware of the allegations but stressed that they cannot comment on the issue because the matter is now under police investigation.
“Besides the fact that the matter is under police investigation, the money referred to is under the control of the municipality, and even the monthly reconciliation thereof does not affect the department,” said Tauetsoala.
“It is the municipality that can provide progress on the matter.”
Community expresses anger
Mphoke PK Attorneys was hired to conduct the forensic investigation after an internal audit in the municipality flagged irregularities in its revenue management processes.
Investigators discovered glaring discrepancies between amounts recorded as collected and those reflected in the municipality’s bank account.
Municipal spokesperson Lovers Sibanda was tight-lipped last week when Sunday World called her for comment, only saying that a probe is underway.
“Please note that the report is preliminary, and the council is still waiting for a final report before acting.
“We can’t comment much on the report, as the investigation is still ongoing, and moreover, we would rather not compromise the credibility of the investigation,” said Sibanda.
Some of the community members expressed outrage, with many pointing out that service delivery continues to suffer while large sums of public funds are seemingly unaccounted for.
“We queue for hours at the testing centre, paying hard-earned money, only to find out that it’s not even reaching the municipality’s coffers. This is unacceptable,” said one frustrated resident.
Governance challenges
The municipality has faced financial governance challenges before, with recurring audit findings pointing to weak internal controls.
Analysts argue that this latest revelation brings home the importance of tighter oversight, especially in high-revenue units, such as testing centres.
In 2007, the Polokwane municipality found itself in a similar situation, and the council went on to place five officials from its licensing department on precautionary suspension following allegations of fraud and irregular transactions that cost the city millions of rands.
The municipality confirmed back then, through its spokesperson, Simon Mokoatedi, that the suspensions happened after an internal audit found a lot of cheating with vehicle licensing records, like issuing fake licence discs, faking renewals, and stealing money that was supposed to go into the municipal revenue account.
