MunicipalNews

DA: “The ANC cannot be trusted with public money”

The party has learned that Lekwa has contravened all relevant legislation which prohibits the municipality from entering into an escrow agreement.

Messrs Rosier de Ville, chief whip of the DA, and Pierre Schnetler, caucus leader, have discovered that R21-million has not been paid over to the Lekwa Municipality.

The Democratic Alliance will request the public protector and the hawks to investigate an escrow agreement the municipality entered into, contravening legislation, that resulted in millions of rands going missing.

The party has learned that Lekwa has contravened all relevant legislation which prohibits the municipality from entering into an escrow agreement.

The legislative framework in question is the Municipal Systems Act 32 of 2000 and the Municipal Finance Management Act 56 of 2003 with the Constitution of the Republic of South Africa, 1996 at all times complied with.

This agreement was made with Makgadji Printing and Projects for installation, testing, maintenance, operation and the upgrading of electricity and water management services.

According to municipal documents, an amount of R35,587 million was deposited into an escrow account from September 2015 to May 2016 with only R14,429 million paid to the municipality.

The information also revealed that on 26 May the CFO requested that an outstanding amount of R21,158-million, held by the service provider, be paid to the municipality by 27 May.

“This is once again a clear indication of corrupt elements within the ANC led government,” Messrs De Ville and Schnetler said.

The DA had requested a meeting with the service provider, including the CFO, to investigate this matter, but the service provider failed to pitch up.

According to them, the speaker refused that the DA ask the CFO questions relating to the legality of the escrow account and the outstanding R21-million in a meeting held on 11 June and as a result the meeting ended in chaos.

The meeting was instead moved to the next council meeting on 15 June, which would have been the last for the present council, prior to the local elections.

“Chances are this money will not be accounted for,” these two party members said.

“The speaker’s ruling is nothing more than delaying tactics in an effort to hide the truth.

“The ANC cannot be trusted with public money.”

According to the party, what is important is finding the right mix of government spending priorities, making government spending and operations efficient and responsive to the needs and concerns of the people of Lekwa and ensuring that government spending is as close to an optimum level as possible.

The DA said it is time to vote out a government that does not care for the people who elected them to power.

According to them, the people of Lekwa must vote for change in the upcoming local government elections by voting for the DA.

“Change that will improve their lives, cut corruption and deliver better services.”

An e-mail was sent to Ms Thobeka Mtshiselwa, communications manager at Lekwa, on 13 June.

No comment was received at the time of going to press.

 

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