The failure of Madibeng Local Municipality in the North West to disclose a R1.1 billion loan obtained from the Public Investment Corporation has shocked members of the provincial legislature. The North West Legislature’ Standing Committee on Provincial Public Accounts held a virtual meeting for the 2018/19 audit reports for Madibeng on Wednesday. Success Marota of the Auditor General’s North West branch, said the municipality failed to disclose the PIC loan.
“There's a loan of R1.1 billion that Madibeng owes the PIC and this amount of money was not disclosed in the financial statements. There's been a court case and court judgment on it whereby the court confirmed that Madibeng owes that money to the PIC," said Marota. He also raised concerns over the municipality’s spending on DSTV and clothing bills.
“They also have financed people in certain positions but there's that double jeopardy of paying staff and also paying consultants. There's lack of documentation and there are also unauthorised debit orders. We identified this in 2018 and it continues to happen where there are DSTV debit orders against the municipal account and clothing debit orders. "We have highlighted all these things and nothing has been done. And then lastly, they have lost that R31.5 billion to VBS Mutual Bank, so it’s a whole exhaustive list of accountability failures whereby you can use Madibeng as a model municipality for accountability failure in the province,” he said. North West Scopa chairperson, Job Dliso, ordered the municipality to submit a comprehensive report on these financial transgressions.
“All this information must reach our office no later than 72 hours from today [Wednesday], failing which we will invoke the rules of the legislature, Rule 321 which will then be a contempt of legislature because you are on record now. We give you a chance to present whatever you wanted to present, and we are looking for value for money. We want all issues that are raised to be accounted for,” said Dliso. Madibeng Local Municipality Mayor, Jostina Mothibe, failed to join the hearings and instead sent an apology that claimed she was absent due to ill health.