The Newcastle Municipality has once again come under scrutiny, this time before a full parliamentary panel that questioned the municipality’s ethics and financial management.

The municipality appeared before the Portfolio Committee on Co-operative Governance and Traditional Affairs on Tuesday, 28 January.

It was represented by Mayor Cllr Xolani Dube, Municipal Manager Zamani Mcineka, Speaker of Council Thengi Zulu, Chief Financial Officer Mrs Khubeka, and Acting Director in the Office of the Municipal Manager and Risk Officer, Mrs Kim.

During the meeting, committee members raised a number of allegations and concerns, many of which stemmed from findings contained in the 2023/2024 Auditor-General’s report.

Mayor Cllr Xolani Dube, Municipal Manager Zamani Mcineka, Speaker of Council Thengi Zulu, Chief Financial Officer Mrs Khubeka, and Acting Director in the Office of the Municipal Manager and Risk Officer Mrs Kim. (Screenshot of the meeting).

Financial inconsistencies

Several financial irregularities were highlighted, including the municipality’s outstanding debt of R662 million owed to Eskom and R314 million owed to uThukela Water.

Members further questioned the under-expenditure of housing grants amounting to R65 million, the municipality’s liabilities exceeding its assets, and high levels of irregular and wasteful expenditure.

Particular concern was raised over an alleged R28 million spent on VIP toilets. The municipality did not provide a response to this allegation during the meeting.

Alleged conflict of interest

Another serious matter tabled was the allegation that Mayor Dube owns a plant hire company and trucks that were allegedly contracted to perform work for the municipality.

It was claimed that R65 million was spent on plant hire during the 2024/2025 financial year, raising concerns about ethical procurement practices. It was further alleged that the machinery in question was currently being used to re-gravel roads in Ward 12.

In response, Mayor Dube confirmed that he does own trucks, but firmly denied that they were contracted by or working for the municipality.

Wasteful spending claims

Committee members also raised concerns about alleged wasteful spending, including a claim that R14 million was spent to tar a road measuring just five metres.

Municipal Manager Zamani Mcineka said he was not aware of the matter and indicated that an investigation would be required before he could comment.

Where is your deputy mayor?

Questions were also raised about the municipality’s failure to fill the vacant deputy mayor position following the removal of Team Sugar councillor Musa Thwala from council.

Mayor Dube explained that Cllr Thwala had taken the matter to court and said the municipality believed it would be inappropriate to appoint a replacement while the legal process was ongoing, should Thwala be reinstated.

At the conclusion of the meeting, the municipality was given three months to investigate all issues raised and submit a comprehensive report to the committee addressing the concerns.

Watch Newcastle Municipality answers tough questions 4:19:20 into meeting: 

The news provided to you in this link has been investigated and compiled by the editorial staff of the Newcastle Advertiser, a sold newspaper distributed in the Newcastle area. Please follow us on Youtube and feel free to like, comment, and subscribe. For more local news, visit our webpage, follow us on Facebook and Twitter, and follow us on our WhatsApp Channel