The DA went live moments ago outside the controversial Mhluzi substation which gulped up more than R500 million in municipal reserves alongside other infrastructure projects, for which more than R700 million was loaned from FNB, with reversed put up as collateral.

The municipality is still on the hook for bi-annual loan repayments totaling more than R60 million.

The DA has instituted legal action against Steve Tshwete Local Municipality after the municipality’s hierarchy failed to act against employees implicated in wrongdoing during the construction of the intake sub.

Recently, a company that was appointed to undertake a forensic investigation provided the municipal council with a comprehensive report which detailed how the Municipal Finance Management Act (MFMA) and Supply Chain Management policies were flouted during construction of this substation.

The report revealed that during the construction of the substation there were payment irregularities, procurement irregularities, oversight failures and financial mismanagement. Primarily, the investigation also exposed how the municipality chose to spend over R158 million on this substation, despite an approved budget of only R30 million.

Apart from this external investigation, the Auditor General (AG) also raised serious concerns with the contractor appointed despite not qualifying in terms of the Construction Industry Development Act 38 of 2000 regulations.

The substation does not benefit residents because it is not connected to Eskom’s electricity grid.

The DA reiterates that recommendations of this report must be followed and disciplinary action must be taken against implicated individuals, and legal advisors must be roped in to start the process of wasteful expenditure recovery.

Despite these glaring findings, the ANC caucus has been opposed to implement these recommendations.

The Facebook live stream can be watched on the DA Steve Tshwete page.