One of SA’s worst municipalities just leaked another R135 million

Celani Sikhakhane

The chaos at one of the worst run municipalities in the country has just taken another turn for the worse after it was revealed that an amount of R135 million has disappeared.

The District Municipality of uMkhanyakude was put under administration in February this year after long-term dysfunctionality, internal divisions and failure to convene council for three consecutive meetings. 

The council also failed to table completed forensic investigation reports and the municipality’s precarious cash flow position and resultant failure to meet its financial commitments.

According to a letter which is believed to have been written by Municipal Manager, Mxolisi Nkosi to KZN Cogta, the money was transferred to Liquidity Plus Account without following the proper procedures of the Municipal Finance Management Act. 

“The sum of R135 million was withdrawn without the consultation of senior accounting officials. We therefore request the intervention of Cogta,” the letter said. 

The letter which has been seen by Scrolla.Africa states that certain senior officials are involved in the disappearance of the R135 million.

KZN Cogta spokesperson, Senzelwe Mzila said they have received many media queries about the money.

“What I can tell you, it’s fake news. The municipality have clarified the matter and said they haven’t lost a cent to unknown accounts,” said Mzila.

The situation at uMkhanyakude has forced members of the KZN Legislature to go there to assess the municipality. 

DA Chris Papas from the Cogta portfolio committee said they went there to have a three-hour meeting but the meeting took more than six hours. 

“That municipality is literally on its knees,” said Papas. 

The Municipal Manager told Scrolla.Africa he was still in the meeting with the National Parliament and he would reply but he never did.

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