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Fraud shakes Moses Kotane

By Gertrude Makhafola | Nov 16, 2009 | COMMENTS [ 0 ]

ALLEGATIONS of corruption, fraud and the misuse of funds continue to bedevil business at the Moses Kotane municipality.

ALLEGATIONS of corruption, fraud and the misuse of funds continue to bedevil business at the Moses Kotane municipality.

This North West municipality includes Mogwase, Madikwe township, more than a hundred villages and the internationally famous Sun City resort.

So serious are the allegations that the police raided the municipal offices last month, seizing documents in the process.

The police commercial investigations branch in Klerksdorp confirmed the investigations.

"We are investigating fraud in the municipality. We hope to finish investigations within three months," Captain Lucas Serumula said.

He is investigating a fraudulent contract in which a service provider was allegedly paid for "cleaning" septic tanks.

The region did not have a single septic tank at the time of the claim.

Also under investigation is the procurement manager, who is facing fraud charges.

Municipal spokesperson Beauty Makganye declined to comment on this investigation.

Also at the centre of allegations is the Moses Kotane Development Agency, established three years ago to "act as an economic development agent for the municipality".

A council meeting in September noted the "sad reality" that the MKDA had "failed in all its goals ... and in so doing wasted millions of its investors' money."

"To make matters worse ... the agency could not pay the salaries of its directors and staff for three months," the council said.

"The agency never submitted reports, annual budgets or financial statements on time."

MKDA chief executive officer Lefentswe Mhatlhe pointed a finger and blamed the municipality for the demise of the agency.

"The municipality buys bricks from contractors from outside and not from our brickyard as was agreed," Mlhatlhe said.

The municipality gave the Agency R1,2 million three months ago, 70 percent of which went to staff salaries.

On the nonsubmission of financial reports, Mhatlhe said he had asked the municipality to hire an audit firm but nothing was done.

Cosatu marched to the municipal offices in August against officials' alleged corruption.

"We are encouraged by the step taken by the police," spokesperson Madito Molebalwa said.


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