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Audit outcomes expose rot at Free State municipalities

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Staff Reporter

Most municipalities in the Free State are ignoring set regulations because there are no firm measures to hold those who break the rules accountable, Auditor General (AG) Tsakani Maluleke said.

In her latest report on local government audit outcomes for 2019-2020, she said this has resulted in the municipalities failing to deliver quality services to residents because resources are not used optimally.

“Lack of accountability creates a perpetual disrespect for regulations, resulting in mismanagement of resources and lack of service delivery,” said Maluleke when she released the audit outcomes on Wednesday.

The AG said overall, municipal audit outcomes in the province have regressed since 2016-17.

She said the province has not achieved a clean audit since Fezile Dabi district’s clean audit in 2015-16.

Some municipalities, however, have fluctuated between audit outcomes, improving one year and regressing the next.

“Our assessment since 2016-17 has shown that there had been a regression in the assurance provided by political and administrative leadership,” said Maluleke.

“None of the assurance providers offered the required level of assurance and the majority of them provided limited or no assurance at all.

“There was a lack of responsiveness to implement and monitor the audit action plans to enable the implementation of effective accountability.”

Maluleke said mayors at poorly operating municipalities did not hold councils accountable for the lack of improvement.

She said this cascaded to different levels in all municipal levels as councils also failed to hold municipal managers and the senior managers that report to them accountable for not fulfilling their duties.

The AG found that most municipalities continued to implement ineffective, short-term solutions to address shortcomings in their underlying controls, through the use of consultants – with a limited transfer of skills.

Other than Thabo Mofutsanyana District Municipality, Maluleke said all municipalities appointed consultants for financial reporting at an aggregate cost of R46.8 million

In the 2018-19 financial period, they spent nearly R30.9 million.

“These consultants performed tasks such as monthly reconciliations, asset verifications and updating irregular and fruitless and wasteful expenditure registers. This situation is even more concerning as there were already people employed to perform such tasks.

“The chief financial officers relied on the consultants to provide audit support and to assist with the responses to audit findings, even on non-technical matters, instead of municipal staff – in spite of paying R280.28 million in finance unit salaries,” said Maluleke in the report.

According to the report, efforts by the provincial treasury to support municipalities in clearing audit findings by deploying officials to attend audit steering committee meetings were not yielding visible results as the move was rather reactive in nature and not a proactive form of support to improve the control environment.

Nine of the 23 municipalities in the province, or 39 percent, did not submit their financial statements on time.

The municipalities incurred irregular expenditure of over R3 billion as a result of not following supply chain management prescripts.

Matjhabeng, Setsoto and Mohokare local municipalities were the top three contributors with R340 million, R184 million and R183 million, respectively.

Unauthorised expenditure by all Free State municipalities amounted to nearly R4.4 billion.

Fruitless and wasteful expenditure stood at R603 million.

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Municipal manager facing tender fraud charges granted bail

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THE ACCUSED . . . Maluti-a-Phofung municipal manager Futhuli Patrick Mothamaha is out on bail

Maluti-a-Phofung municipal manager Futhuli Patrick Mothamaha, 49, was on Friday released on a bail of R500 000 by the Phuthaditjhaba Magistrates Court after he was arrested by The Hawks for fraud, corruption and Contravention of the Municipal Finance Management Act.

The state alleges that he allegedly awarded a contract of R58 million to Kill Crime Security Company in 2020 without following proper procurement processes.

National Prosecuting Authority regional spokesperson Phaladi Shuping said Mothamaha allegedly signed a service level agreement on May 19, 2020, appointing the company to render security services to the municipality for a period of three months without following procurement processes.

“The municipality continued to pay Kill Crime Security Company for almost two years without a contract,” said Shuping.

He said Mothamaha was supposed to appear with his co-accused, father and daughter who are the owners of Kill Crime Security, Thabiso, 55, and Dimakatso Sekhosana, 29, on Monday after they were instructed by The Hawks to hand themselves over on Sunday, but he failed to do so.

The Sekhosanas appeared on Monday facing similar charges and were released on bail of R150 000 each.

Part of Mothamaha’s bail conditions are that he must not enter the offices of the municipality, not interfere with the investigations nor intimidate witnesses.

The case was postponed to September 30 for further investigations. – Staff Reporter

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Six nabbed for alleged theft of network batteries

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NABBED . . .  The six men believed to have stolen network batteries and damaged critical infrastructure

 Six men were due to appear in the Marquard Magistrates Court on Friday after being found in possession of eight network batteries believed to have been stolen.

Police spokesperson for the eastern Free State, Warrant Officer Mmako Mophiring, said the suspects were arrested following a joint effort by members of the SA Police Service, private security and farmers.

He said police received information from the community at about 3am last Wednesday saying some unknown men were digging up network boxes and cutting copper inside a manhole.

“The police activated and mobilised other members and arrested the first suspect who is a foreign national near a filling station while sitting inside a vehicle,” said Mophiring.

The man was arrested for possession of suspected stolen property after eight network power box batteries were found in his possession and failed to properly account for them.

While pursuing the matter with the help of some farmers, the police received information at about 8am that some five men were trying to hitch-hike near a certain farm to Senekal.

“The team quickly responded and arrested the three suspects who were successfully linked to the initially arrested suspect. Two other suspects managed to escape but were chased and arrested near a farm going to Senekal. Four of the six suspects are Illegal immigrants and two are South Africans,” he explained.

The six are aged between 23 and 30 years of age.

They are facing charges of contravening the Immigration Act, possession of suspected stolen property and damage of infrastructure.

Provincial Police Commissioner Lieutenant General Baile Motswenyane applauded the community and the team for the prompt arrests and urged them to “continue working together to fight crime”.

Meanwhile, three suspected armed robbers were sniffed out of their hideout in Thaba Nchu near Serwalo on Thursday morning following a petrol station robbery.

Police spokesperson in Mangaung, Sergeant Mahlomola Kareli, said in a separate statement four armed robbers arrived at the petrol garage just after midnight on Wednesday and threatened the security guard with a firearm before tying him up with wire and fleeing the scene with a undisclosed amount of cash and cans of motor vehicle oil.

The suspects demanded keys from the guard and gained access to the back offices.

And while others were busy helping themselves to the oil cans and cigarettes, others were busy grinding the safe to access the money inside.

The four then left the security guard with his hands and feet tightly fastened with a wire.

The guard was only rescued by staff starting duty at 5am.

The matter was reported to the police and a case of armed robbery was opened at Thaba Nchu Police Station and a manhunt was launched.

Luck ran out for three of the suspects aged between 38 and 40 after they were traced and found near Serwalo in Thaba Nchu at about 2am on Thursday and were arrested.

They were found with an undisclosed amount of money suspected to have been stolen during the robbery.

One suspect remains at large.

The three were due to appear in the Thaba Nchu Magistrates Court on Friday for business robbery. – Staff Reporter

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Garden scissor attacker nabbed

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THE CRIME TOOL . . . A 64-year-old man allegedly used this garden scissor to attack a man and his family

A 64-year-old man has been arrested after stabbing one person in the stomach with a broken garden scissor and injuring the victim’s family while holding them hostage.

Police say they were called to a place in Verkeerdevlei on Wednesday evening where a person had been stabbed in the stomach.

Upon arrival, they found a 53-year-old man who had been stabbed in the stomach with the broken scissor.

The suspect had already fled the scene.

“The victim was taken to hospital for medical treatment,” said Captain Stephen Thakeng in a brief statement.

Further investigations revealed that the same suspect went to the house of the victim’s 36-year-old daughter house where he held her and her two children – aged 13 and 15 – hostage.

“Tactical Response Team (TRT) members from Park Road were activated at about 21:30 and it was realised that the suspect was holding (the family) hostage in a three-roomed shack,” said Thakeng.

“The TRT members gained entry into the shack and rescued the three from the suspect.

“The three victims were also stabbed with the same half part of the big scissor.”

The suspect is facing a charge of attempted murder and three counts of assault with intent to cause grievous bodily harm.

He will appear in the Verkeerdevlei Magistrates Court soon.

THE CRIME TOOL . . . A 64-year-old man allegedly used this garden scissor to attack a man and his family

Meanwhile, a man believed to be terrorising tuckshop owners around Bothaville was arrested on Wednesday following a tip-off by community members.

Police say they received information about a man with a firearm and who might be involved in robberies of tuck shops of foreign nationals at about 16:30.

The suspect’s house in Kgotsong was identified and members of Bothaville Crime Prevention approached it and asked for permission to search the place.

They were granted permission and a 9mm pistol was found and a 27-year-old man from Potchefstroom was arrested for possession of an unlicensed firearm.

The suspect will appear in the Bothaville Magistrates Court soon. – Staff Reporter

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