MBOMBELA – The municipality will not be able to meet its immediate current financial commitments and obligations in the short term, according to its first-quarter budget statement. Yet, it has purchased furniture to the value of more than R600 000 for the new mayor’s official home.
According to the report signed by acting municipal manager, Mr Sello Dishego, actual capital expenditure for the first quarter amounted to only R32 million. This is an underspending of
R98 million or 75 per cent, mainly due to the roll-over process and most new projects being at a planning and procurement stage. However, actual expenditure for salaries, allowances and benefits to employees amounted to R126 million, four per cent more than planned in the quarter.
At the same time, 71 per cent of the year’s provision for the mayoral residence, totalling R1,1 million was spent in the first quarter. A total of R667 128 was spent on furniture. Five different suppliers were used and they were all appointed on the same date.
The amounts were:
• R196 870 for bedroom furniture
• R152 800 for lounge furniture
• R104 470 to kit out offices and a boardroom
• R83 347 for furnishing an entertainment area
• R76 547 for dining room furniture
• R53 094 for kitchen furniture.
The official opposition in the local municipal council says there is nothing legally wrong with furnishing a house for use by the mayor Cllr Sibusiso Mathonsi, but where are the furniture used by the former mayor? Mr Jo Koster, DA caucus leader in MLM, says of course the mayor must have a furnished functional office at his official residence. However, he adds it is suspicious that one contract is worth slightly less than R200 000, while two contracts were awarded to one supplier totalling more than R200 000. According to the Municipal Finance Management Act the names of all bidders must be published for contracts awarded in excess of R200 000.
During the special meeting last week when the report was tabled, council was also asked to process expenses incurred by the former mayor, Ms Cathy Dlamini, amounting to R789 020 for marketing material and live entertainment before leaving office in May, as irregular expenditure. The accounts were paid in August.
Neither Mr Joseph Ngala, spokesman for MLM, nor Mathonsi commented.
