The Democratic Alliance will tackle the financial calamity at Makhado Municipality, by calling for its leaders and officials to appear before the Limpopo Legislature Committee on Co-Operative Governance.
The DA has written to the Chairperson of the Committee to request that the Makhado municipality’s executive be called to account before the committee and provide clear explanations for the poor financial performance.
Yesterday, the local sheriff attached two bakkies and a backacter, after the municipality’s disregarded a court order dated 8 October 2024 to pay over R2.5 million to a supplier, for security services rendered.
The original summons and the court order was ignored, which resulted in the attachment of municipal property; with more attachments imminent.
The loss of these vehicles will impede service delivery even further at the expense of residents.
Makhado municipality has been operating on an unfunded budget for the last 2 financial years and is solvent on a liquidity ratio of 1:1, but unable to pay creditors.
This municipality has been a cadre cash cow for years; irregular investments at VBS bank of more than R60 million, now forfeited, and political interference in senior appointments has brought Makhado to near financial ruin.
Despite the multiple financial challenges facing the municipality, no request has been made to COGHSTA for assistance with a voluntary financial recovery plan. Similarly, no intervention has been introduced by COGHSTA in terms of legislation.
The department of COGHSTA is seemingly oblivious to Makhado municipality’s financial woes, either because monthly budget statement reports are not received, or scrutinised, or because there is a lack of transparent reporting.
The DA expects that this meeting will be called by the Limpopo Legislature Committee, so that the Makhado delegation is ordered to appear and be transparent about the crisis which the municipality is facing.