The content on this page is not written by Polity.org.za, but is supplied by third parties. This content does not constitute news reporting by Polity.org.za.

The Democratic Alliance (DA) in Gauteng has been reliably informed that the Mogale City Local Municipality created a R9 million invoice for Aqua, instead of paying them for services rendered to the Municipality.

Subsequently, while in the process of making the payment, an email was sent to the municipality instructing them to transfer the money to a different account as opposed to the original account provided by Aqua.

The R9 million was subsequently deposited without verifying the account details.

It is alleged that the second account belonged to Motlatsi Attorneys. Once the R9 million was paid, it was immediately transferred to different accounts, raising suspicion by the bank who alerted the municipality’s Chief Financial Officer (CFO).

It is further alleged that the Municipal Manager, and another manager who works under the CFO, authorized the transfer to the new account without the knowledge of the CFO.

In July last year, the CFO opened case number 239/07/2020 at the Krugersdorp police station, regards the missing funds with the case later transferred to Palm Ridge Commercial Court.

The money was paid in two transactions, with R5 million on 10 July 2020 and R4 million on 14 July 2020 to ABSA account number 4098733867.

It is alleged that the Mayor’s daughter was also a beneficiary of the missing R9 million.

These actions by the municipality are a gross deviation of proper public finance practices. Should a service provider ever wish to change the banking details for payment, they are required to write a formal letter to the Municipal Manager informing them about changes in their banking details. A verification process is also required to ensure the account belongs to the service provider and whether the service provider is compliant in terms of tax and other regulations before receiving any payments.

The fact that the Municipal Manager and another manager are alleged to have authorized this transaction clearly indicate that they are complicit and must account for this R9 million.

Nine months have passed since this case was open, yet no one has been arrested nor has the money been recovered.

Money laundering, financial mismanagement and corruption are serious crimes that have led to the collapse of many ANC-led municipalities across the country.

Mogale City is debt-ridden, and service delivery remains in dire straits while millions are stolen from the coffers to enrich few individuals in high ranks within the local government.

The DA will write to both the Premier, David Makhura and the Gauteng MEC for Co-operative Governance and Traditional Affairs, Lebogang Maile to ascertain the progress of this case as well as to ascertain whether a forensic investigation has been instituted into this matter and why no one has been held accountable.

Issued by DA