SDM allegedly spends more than R15m to recover R5m
SDM’s spokesperson, Moloko Moloto, said the amount paid by the municipality in legal costs to lawyers who investigated and assisted them to recover the money was just under R2 million.
SEKHUKHUNE – The DA recently claimed the Sekhukhune District Municipality (SDM) had spent more than
R15 million to recover a theft of R5.4 million.
In July 2017, about R5.4 million was fraudulently paid into a number of “wrong” bank accounts.
The DA claimed SDM has already spent more than R15 million in payments to attorneys and other persons who investigated the theft, but to no avail.
The DA wrote to the executive mayor, Cllr Stanley Ramaila, requesting a full account of what the R15 million was spent on and to explain why this expenditure should not be regarded as wasteful.
“This theft, perpetrated through the transfer of R5.4 million into multiple private bank accounts, was clearly an inside job. Despite the lengthy suspension and subsequent reinstatement of several officials employed
by the municipality’s finance and IT departments, none of these officials has been arrested, criminally charged or prosecuted,” said the DA’s Cllr Solomon Maila.
He said it is clear the delay in the finalisation of the criminal case is meant to shield the real masterminds behind the embezzlement, which was allegedly followed by another theft of R12 million,without consequence.
“This is further compounded by the fact that the disciplinary cases involving the suspected municipal
officials have still not been concluded. The longer the disciplinary cases take, the more millions of rand will be spent on the matter.”
The party said both the ongoing disciplinary and criminal cases should be concluded in a prompt manner, to ensure the accountability of the officials involved.
SDM’s spokesperson, Moloko Moloto, said the amount paid by the municipality in legal costs to lawyers who investigated and assisted them to recover the money was just under R2 million.
“So far, we’ve recovered R4.9 million. It’s important to note that we needed the assistance of lawyers who
could navigate the applicable legislation. The disciplinary proceedings against the implicated officials are continuing. Regarding the R12 million, the director who was found to have been negligent was demoted. However, criminal investigations by the police in both cases are continuing and we await an update from them.”
