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The IFP supports the National Treasury's decision to stop funds to the Nala
Municipality in Free State. Mismanagement and maladministration cannot be
tolerated because they affect public service delivery.

"The biggest losers are the community who should be receiving services from
the municipality. It is therefore very important that an administrator be
appointed in the municipality so that service delivery can continue," said
Narend Singh, IFP Spokesperson on Finance.

Singh added "The Nala municipality's public funds have been mismanaged for
some time now. It is perfectly clear that there is no true leadership and
the management of Nala Municipality is corrupt and incompetent. Government
needs to urgently remove the current Nala Municipality management and employ
competent and reliable individuals."

The IFP has always maintained that South Africa is flush with money because
of an excellent tax collection system. The problem lies with many
incompetent people who are entrusted with spending taxpayers' money.

"Government needs to thoroughly investigate this municipality and ensure
that the culprits are found and dealt with" said Singh.

Singh concluded "What is happening in Nala municipality is mirrored in many
other municipalities around the country, as borne out by the audit findings
on municipalities recently completed by the Office of the Auditor General.
It is also imperative for National Treasury to accelerate the programme of
training of municipal officials in financial management."

The IFP hopes that the National Treasury's decision is not just a threat,
but is a decision which will be followed through.