ActionSA on Maluti-A-Phofung’s Financial Collapse: Calls for Administration
Press Statement by Patricia Kopane
ActionSA Free State Chairperson
ActionSA is deeply concerned about the continued dysfunctionality and financial mismanagement in Maluti-A-Phofung Local Municipality, which demands urgent intervention. A senior official unlawfully signed a R27 million acknowledgement of debt to a company owned by his cousin, exposing the deep-rooted corruption crippling service delivery.
The Municipal Public Accounts Committee (MPAC) has failed in its duty to ensure oversight, allowing corruption to flourish unchecked. Maluti-A-Phofung must be placed under administration or dissolved entirely, as it has proven incapable of fulfilling its constitutional mandate.
The municipality’s financial collapse is further evidenced by its staggering Eskom debt of R8 billion as of July last year, jeopardising electricity supply and worsening service delivery.
The recent scandal involving Corporate Services Director Sam Makhubu and Kill Crime Security Service, co-owned by his cousin Thabiso Sekhosana, highlights blatant abuse of power. The Free State High Court declared their agreements and the R27 million acknowledgement of debt as constitutionally invalid. Judge Joseph Mhlambi’s ruling exposed a deliberate scheme to exploit municipal resources, with both individuals effectively “capturing” the municipality.
This corruption, enabled by weak governance, cannot continue. We call on the national government to step in, place Maluti-A-Phofung under administration, and hold those responsible to account.
The people deserve better than a municipality hijacked by corruption. It is time to restore good governance and ensure municipal funds serve the community, not the politically connected elite.
ActionSA on Maluti-A-Phofung’s Financial Collapse: Calls for Administration
ActionSA is deeply concerned about the continued dysfunctionality and financial mismanagement in Maluti-A-Phofung Local Municipality, which demands urgent intervention. A senior official unlawfully signed a R27 million acknowledgement of debt to a company owned by his cousin, exposing the deep-rooted corruption crippling service delivery.
The Municipal Public Accounts Committee (MPAC) has failed in its duty to ensure oversight, allowing corruption to flourish unchecked. Maluti-A-Phofung must be placed under administration or dissolved entirely, as it has proven incapable of fulfilling its constitutional mandate.
The municipality’s financial collapse is further evidenced by its staggering Eskom debt of R8 billion as of July last year, jeopardising electricity supply and worsening service delivery.
The recent scandal involving Corporate Services Director Sam Makhubu and Kill Crime Security Service, co-owned by his cousin Thabiso Sekhosana, highlights blatant abuse of power. The Free State High Court declared their agreements and the R27 million acknowledgement of debt as constitutionally invalid. Judge Joseph Mhlambi’s ruling exposed a deliberate scheme to exploit municipal resources, with both individuals effectively “capturing” the municipality.
This corruption, enabled by weak governance, cannot continue. We call on the national government to step in, place Maluti-A-Phofung under administration, and hold those responsible to account.
The people deserve better than a municipality hijacked by corruption. It is time to restore good governance and ensure municipal funds serve the community, not the politically connected elite.