Wed Jan 18 12:06:23 SAST 2017

Municipality unable to pay staff salaries this month

By Ntwaagae Seleka | 2012-02-27 14:06:46.0 | COMMENTS [ 28 ]

CLAIMING for fuel to put in a washing machine and fuel expenses for scrapped vehicles are some of the ridiculous ways in which employees defrauded the now cash-strapped Nala local municipality in Free State.

The municipality is now reportedly unable to meet its February salary bill, estimated at R4-million.

The cash-strapped municipality - serving Bothaville, Wesselsbron and surrounding farming areas - has confirmed that it has not been generating revenue for the past 20 months because it had installed a R6-million billing system that does not work.

"The Nala municipality has not been billing for the past 20 months resulting in a cash-flow problem," acting municipality manager Chris Mokomela said.

The municipality hit a snag when a new financial management system was installed more than a year ago. It is this malfunctioning system that Mokomela partly blames for "failing" him in a letter in which he is asking for assistance from the provincial government.

Provincial spokeswoman Senne Bogatsu told Sowetan the request had been turned down, but the workers' salaries would be paid from March through a new financial recovery plan.

Nala municipality came under the spotlight last year when a KPMG forensic exposed a scam in which employees were fraudulently claiming for their fuel expenses. The report revealed that between 2007 and 2009 there were fraudulent claims amounting to R160,477 involving 207 privately owned vehicles.

Two Nala municipality employees, William Tsatsilebe Masisi and Dikotsi Koos Tsholo, are out on a warning for allegedly filling their vehicles using the municipality's fuel account.

The two men were arrested after a whistle-blower alerted the filling station employees in that the men were defrauding the council's account.

Further investigations have revealed that the scam still continues. Sowetan has seen documents showing that between January 22 and 27 the municipality has been defrauded of another R15,000.

Still under investigation are reports that the municipality has been defrauded more than R92,000 this month.

Some of the fraudulent claims include:

  • R300 claimed for petrol in a washing machine;
  • R1,295 claimed for fuel filled in a scrapped vehicle;
  • R1,690 claimed for fuel filled in scrapped tractors;
  • R355 claimed for petrol on behalf of a deceased driver;
  • R11,406 claimed for fuel using forged signatures.

In 2009, the municipality was placed under administration after failing to keep its financial books and administration in order.

  • The municipality is also accused of wasting R105-million allocated to get rid of the bucket toilet system. To date residents of Monyakeng in Wesselsbron have not received new toilets.
  • Companies contracted by the municipality were paid large sums of money for unfinished projects. For example, it replaced one consultant with another at huge expense, and still settled with the previous consultant at a substantial cost.
  • Former mayor Mpai Mohorosi is accused of fraudulently using R234,000 to build a wall at her home.
  • Current speaker Nozililo Mashiya is also implicated in the unprocedural use of the municipality's credit card to buy liquor for R11,489.
  • Employees defrauded about R705,423 in a salaries scam.

  • An employee asked for a 10% commission from a company awarded a R14-million tender.


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what is claimed for washing machine? how can you approve it? is there a system where approval are done by indipendent people or it's just mix masala of palookas. good there is no money now so what?

2012-02-27 14:17:07.0 | 0 replies

This is seriously ridiculous – the system has not worked for 20 months! Obviously no testing was done and the new systems was implemented Rambo style, but once you see the system does not work, why not revert back to the old one?

2012-02-27 15:47:18.0 | 0 replies

No billing, No income, No problem, we just get a bailout from the taxpayers in the rest of already overtaxed SA. The ANC inability to fight corruption will become its undoing. Soon the uneducated masses will become wise to what is happening. Let us hope it is very soon!

2012-02-27 15:48:51.0 | 0 replies

YEH - No money in - took them 20 months to figure that one out.

2012-02-27 15:51:41.0 | 0 replies

The problem is not the application/software, its leadership, if you know how to manage your municiplaties u will also know that whatever u have on PC/software should have a back-up sytems or a manual system which can compansate in time of need. The problem is u dont care of the people u serve but ur stomach to fill and irregular tenders, surely the billing system is been put up by some BEE corrupt friend of the manager, it will never work and we will have to bail u out..........shame to the ANC goverment u give black nation a bad name.

2012-02-27 16:00:37.0 | 0 replies

You can crucify these employees as much as you want but if the system is "weak", believe me child of the Most High, even the angels like you and me would be tempted.

2012-02-27 16:05:54.0 | 0 replies

@ DisEnchanted
Maybe because the ANC ( that is voted for by the gullible ) employes those individuals


Government employs everyone with certain skill. But people diced to scruu the employer.

2012-02-27 16:11:46.0 | 0 replies

Why is this news - I Thought this happend all over the country - We all knew this would happen one day - So

2012-02-27 16:13:59.0 | 0 replies

Why is JuJu fighting for economic freedom when the ANC already have it? Let's all rather fight for real economic and political freedom from the ANC who are the masters of corruption, maladministration and political deception. Zuma and his cronies make noises about corruption but do nothing in reality to stop it.

The failed state is manifesting itself every day in towns, cities and provinces THANKS TO THE ANC. Where will it all end? In lawlessness, banditory, murder, raping and rioting on a scale that will make the Soweto riots of 1976 look like children at play. A vote for the ANC is a vote for this kind of future. Want it? Vote ANC, but be prepared to throw away your children's future and condemn them to a life of continued poverty and depravation.

2012-02-27 16:56:32.0 | 0 replies

Ag, this happens in MOST municipalities ALL over the country... so please...

2012-02-27 17:07:12.0 | 0 replies


Who runs those municipalities and who appoints the people to run those municipalities?
If it was a DA or an IFP municipality you would be the first to shout about it so don't do the double standards thing now.

People don't vote for individuals, they vote for the ANC. They then trust the ANC to make sure that they appoint the right people and keep an eye on them to make sure they do a good job looking after things.

2012-02-27 17:36:27.0 | 0 replies