The failure of the beleaguered and financially stricken Matjhabeng Local Municipality to pay one of its service providers has led to the attachment of some of its movable assets. On Tuesday, the sheriff of the court attached six traffic police vehicles after the municipality failed to settle a R350,000 debt owed to a contractor.
Matjhabeng caters for towns such as Welkom, Odendaalsrus, Virginia, Hennenman, Allanridge and Ventersburg, among others. This incident is the latest in an ongoing financial mismanagement saga in the municipality. In June last year, Matjhabeng was placed under provincial administration following a Bloemfontein High Court ruling amid the total collapse of service delivery and a R16-billion debt crisis.
The seizure of the vehicles caused confusion as some traffic police officers had already reported for work, where they use the cars for by-law enforcement operations. Some were even ejected from the vehicles, which they were already occupying.
In one of the video recordings viewed by Sunday World, some municipal workers could be heard celebrating the attachment of the vehicles. They claim that the municipality is notorious for failing to pay service providers.
“The situation was very hostile and shocking when the sheriff arrived armed with the court order to attach the municipal traffic vehicles. The police driving those vehicles were stunned when they were told to get out of the vehicles.
They were told to find other cars to use for patrols in Welkom, Virginia, and Hennenman, as the ones they usually use are no longer Matjhabeng’s,” said an insider within the municipality.
“Matjhabeng is run like a spaza shop. Nothing works within this municipality. The property of the municipality is being attached. It’s a mess here…,” said a municipal official who asked not to be named.
Since 2017, several service providers have sued Matjhabeng, alleging that the municipality owed them millions in unpaid debts.
According to Matjhabeng spokesperson Tshediso Tlali, all the seized vehicles have since been brought back to the municipality after the matter was settled. Meanwhile, Sunday World approached the service provider to verify Tlali’s claims, but they declined to comment.
In March, Sunday World reported that the leadership of the troubled Matjhabeng, including mayor Thanduxolo Khalipha, municipal manager Thabo Panyani and other officials, were allegedly pushing back on implementing the financial recovery strategy put together by the provincial exco representative (PER). Khalipha and his supporters had allegedly been hostile towards the PER led by Makalo Mohale, who was appointed to help implement the turnaround strategy plan devised as a remedy to Matjhabeng’s governance and administrative woes.
It also emerged that Matjhabeng owed Eskom R7-billion and Vaal Central Water R9-billion. It has received a qualified opinion in the past three years because the budget steering committee failed to meet to discuss crucial budget matters and votes.
Furthermore, Matjhabeng has faced issues around expenditure, revenue, and contract management, including asset management. For several years its municipal revenue collection stood at 51%.
On the issue of service delivery, which directly affects residents, water distribution losses cost Matjhabeng R418-million, electricity supply losses are sitting at R204-million, and the infrastructure has completely collapsed with sewer and water leakages across areas run by the municipality. Money spent on maintenance was found to be 1.2% of the budget, much lower than the norm of 8%, as master plans are non-existent and outdated.
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- The failure of the beleaguered and financially stricken Matjhabeng Local Municipality to pay one of its service providers has led to the attachment of some of its movable assets.
- On Tuesday, the sheriff of the court attached six traffic police vehicles after the municipality failed to settle a R350,000 debt owed to a contractor.
- Matjhabeng caters for towns such as Welkom, Odendaalsrus, Virginia, Hennenman, Allanridge and Ventersburg, among others.
- This incident is the latest in an ongoing financial mismanagement saga in the municipality.
- In June last year, Matjhabeng was placed under provincial administration following a Bloemfontein High Court ruling amid the total collapse of service delivery and a R16-billion debt crisis.
