Freestate and Northwest municipalities corruption, non-payments … audit

The so-called ‘democratic’ Constitution guarantees every citizen the right to live without crime and corruption,  to have access to sufficient water, but those promises are only as good as the local government tasked with delivering the services  in the Free State, the standard of local government in general is poor and very bad.
Geen belofte gemaak sedert 1994 word in stand gehou nie.   Daar gaan weke om dat burgers wat betaal vir ‘n diens, geen diens ontvang nie.    Water is die belangrikste en word weerhou deur munisipaliteite.

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The Auditor-General reported there is not one single Free State municipality that received a clean audit.   Towns and even cities across this province have been brought to their knees through sheer mismanagement and corruption, and the result is a widespread breakdown of service delivery, maladministration while those in the seats get their salaries and benefits.    This is also corruption, to keep people that can not do the work.   Why are there so many councillors and officials – they receive any salaries for no services delivered?   
Waarom word personeel en amptenare vir jare aangehou maar daar word steeds geen dienste gelewer nie, of andersinds is daar korrupsie?

Hoeveel van hierdie amptenare wat miljoene bydraes van pensioenfondse weerhou het van pensioenfondse, wat afgetrek is van amptenare se salarisse, is vervolg?   In wie se privaat bankrekenings  is hierdie fondse inbetaal?




Auditor-general flags lack of accountability as the major cause of poor local government audit results

PRETORIA – The auditor-general (AG), Kimi Makwetu, today released yet another set of municipal audit results that show an overall decline in audit results for the 2017-18 financial year.

Releasing his latest report on the performance of South Africa’s municipalities, Makwetu said this undesirable state of deteriorating audit outcomes shows that various local government role players have been slow in implementing, and in many instances even disregarded, the audit office’s recommendations.

As a result, the accountability for financial and performance management continues to worsen in most municipalities.

This general report deals with the audit outcomes of local government for the financial year ended 30 June 2018. It precedes the amendments to the Public Audit Act, which became effective on 1 April 2019. Accordingly, the requirements of these amendments will be applicable for the first time to audit reports issued for the financial years that ended on or after 31 March 2019.


The Auditor-General of South Africa (AGSA) audited 257 municipalities and 21 municipal entities for the 2017-18 financial year.

The Municipal Finance Management Act (MFMA) prescribes that municipalities should submit their annual reports to their respective municipal councils. The AG reports that by 31 May 2019, of all audits completed, only municipalities in the Gauteng, KwaZulu-Natal, Mpumalanga and the Northern Cape have fully complied with this MFMA prescript – all registering a 100% tabling rate.


The following provinces have municipalities that had not tabled their reports by 31 May 2019:

o North West and Eastern Cape have one municipality each that had not tabled
o Two municipalities each have not tabled for Limpopo and the Western Cape
o Free State has three municipalities that had not yet tabled.

Click to access 2019%20MFMA%20Media%20Release.pdf


Mr Kegakilwe provided detailed information on each municipality.



“The Free State local government environment displayed a total breakdown in internal controls as the province’s political and administrative leadership, yet again, exhibited no response to improve its accountability for financial and performance management… we doubt if there is political will to do the right thing for the right reason, mainly due to political interference to the detriment of good governance.”

That’s the way the ANC does things. That’s why the man who wrecked this province through state capture, Ace Magashule, is now the Secretary General of the ANC. Elsewhere, when you fail at your job or when you have committed acts of corruption, you are fired. In the ANC you get promoted.

Coupled with this corruption and mismanagement is an inability or unwillingness by local governments to collect payment for services, leaving them with debt amounting to billions of Rands owed to both Eskom and the various water boards. One third of all municipal debt to Eskom is owed by Free State municipalities.

The municipality of Matjhabeng owes its water board a staggering R2.3 billion, to go with the R1.84 billion it owes Eskom. Here in Mangaung, Bloemwater claim that they are owed more than R400 million. But because the City only collects half the monthly amounts due, they simply fall further and further behind in their debt.

It has become so bad that large parts of the Metro – particularly in the South – regularly go without water for days at a time due to a combination of infrastructure neglect and non-payment. During the past 15 months the suburbs and townships in the South, along with towns like Dewetsdorp and Wepener, have gone for 40 days without water. That’s three days per month, every month.



We are here outside the Free State Premier’s Office to pass on a clear message to the ANC provincial government: we, the people will not continue to pay for the sins of the ANC. Government must take immediate action against municipalities in the province which have failed to pay more than R5 billion in bills owed to Eskom.

Democrats, this province is the biggest defaulter when it comes to paying its Eskom bills. Maluti A Phofung, Matjhabeng and Ngwathe owe Eskom R2.809 and R1.815 billion and R940 million respectively – the 1st, 2nd and 4th most indebted ANC municipalities to Eskom in South Africa as at November last year.


Eskom will stop supplying electricity to three Free State municipalities, including  the Mangaung metro which has Bloemfontein in it, due to contravention of payment conditions, the power utility.


Kopanong – Mangaung – Maluti-A-Phofung

There are more than just service not been delivered but all well-planned by the ANC that rules every city and town in South Africa.   Reddersburg (Kopanong) is also for a time now under adminstration with no services delivered – means no water, sanitation and refuse removal.   To do your own services is not “freedom” at all.         The Free State’s Kopanong Local Municipality has failed to pay more than R58 million in pension fund contributions collected from municipal workers over the past six years to the workers’ pension fund.

Kopanong Local Municipality
Image result for Kopanong Local Municipality


Spotlight – lack and quality of water is a problem, electricity problems (non-payments), pension fund contributions
State of Municipalities


It is a concern why is it six years since the pension fund did not receive any contribution – why wait such a long period?    The municipal employer is obliged under legislation (of the ANC) to pay over the contributions it collects from official’s salary as well the employer contributions (that form part of your salary package) to the pension fund.    This is not only corruption, but a crime.    Many employers failed to do so, contravening the Pension Funds Act in what amounts to theft of employees’ money.

The failure of the board of trustees and the administrator of the South African Local Authorities Pension Fund, Fairsure Administration, to take action to force the Kopanong municipality to pay over the money has annoyed adjudicator Muvhango Lukhaimane, who has been campaigning against trustees and administrators who do nothing to stop employers who plunder members’ savings.

In the Kopanong case, Fairsure told the adjudicator that the municipality had not paid contributions since March 2013 even though it sent monthly communiques to the municipality regarding the unpaid contributions.

The administrator was unable to confirm arrear contributions for each individual member of the fund and could only say that the municipality was in arrears to the tune of R58,4-million.

You have the right to receive regular information about your pension fund benefits from your fund. The rules governing contributions, the rate at which contributions must be deducted, and how often they must be paid to your fund are contained in the rules of your pension fund which the adjudicator describes as “supreme” and ”binding on officials, members, shareholders and beneficiaries of a fund”.

Lukhaimane has ordered the municipality to provide the fund with contribution schedules for the employees who complained to her within two weeks of the determination.

She has also ordered the municipality to pay the members’ arrear contributions to the fund, with interest, so that the fund could update the records of the affected members.


Is there really freedom if the hidden agenda of the ANC is to get their hands on the contributions of the pension/medial aid funds.

Another thought is, for how long will the ANC allow or “blame”  the taxpayer association or is there another hidden agenda on the horizen – missing a link here.

To supply your own services is freedom, but it is a better solution to be dependent fro this corrupt government.   We all know that we pay for a service we do not get at the end.

That is why it is so important to work on alternative solutions for us, namely full self-determination to our own people  and not to trust any rainbow nation nor communist government for this kind of hidden agendae.


This is only Reddersburg at this stage, but Bloemfontein is also under administration.   How many hidden musical chairs are there? 

The Free State government has placed the troubled Mangaung Metro, which includes Bloemfontein, under administration.

Dienste word nie voorsien nie, water wat ‘n noodsaaklikheid word al vir ‘n geruime tyd nie aan inwoners verskaf nie.   Dienste het soos in baie ander stede en dorpe, ophou bestaan om voort te gaan.   Bloemfontein metro onder administrasie geplaas in die week  18 Desember 2019.


Mangaung metro – Bloemfontein under administration

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What happened to all the councillors and municipal workers that did not work or do their jobs for 25 years they have been paid for and all “contributions to pension funds paid as well”.   No work no salaries !

They all fall under this corrupted government, all cities are controlled by the corrupt government (level 3 of government) that control all levels of citizens – those must just blame themselves.

There are unfortunately more financial implications and this is also not freedom – namely the contributions to the pension funds .  Old age people that worked there for decades will now have no income as well as those that still work there with no light at the end of their tunnel.   What happened to their contributions?     Some municipal officials already took the pension contributions to feed their own accounts.

It was reported in April this year, that the cash-strapped Kopanong Local Municipality in the Xhariep region in the Free State owes employees over R58 million in unpaid pension funds.    Despite efforts taken to pay money into the workers’ pension fund – the South African Local Authorities Pension Fund (SALAPF) – the ANC-led municipality has dismally failed to pay the contributions of several employees since March 2013.

The municipality’s chaotic state came to light during an investigation by the Office of the Pension Funds Adjudicator after several employees lodged complaints about the municipality’s failure to pay their third-party contributions.   These include payments to the pension fund, medical aid and insu­rance premiums. resulting in policies lapse due to non-payment by the municipality.   If somebody are already on pension, the municipality still contribute in certain financial aspects.

  • The investigation involved the SALAPF, Fairsure Administration (Pty) Ltd (second respondent) and the Kopanong Municipality (third respondent).

Muvhango Lukhaimane, the pension funds adjudicator, said the Kopanong Municipality had contravened the Pension Funds Act by failing to pay all contributions in respect of the complainants.

According to the complainants (employees), the municipality deduc­ted pension fund contributions from their salaries, but failed to pay over the money to the SALAPF.

“Other than sending letters to the municipality, this tribunal is not aware of any legal action taken by the fund to remedy the situation since it became aware of the default by the municipality in 2012,” said Lukhaimane.

Findings revealed that the municipality was in arrears of an estimated amount of R58 347 794,69 in unpaid pension fund contributions.    Lukhaimane stated that the Kopanong Municipality was afforded the opportunity to respond to the complaint.

“However, it failed to file a response.”

She said the municipality further failed to provide the name of the person who could be held personally liable for the non-payment of contributions and have his or assets attached – if necessary, to recover the workers’ pension fund.   The Kopanong Municipality has been ordered to pay employees their contributions with interest, while the SALAPF was ordered to provide the complainants (workers) with a breakdown of their contributions and latest benefit statements.

Since the beginning of the year, dissatisfied employees have embarked on a strike, demanding from the ANC-led municipality what is due to them.

This trouble-ridden municipality governs Bethulie, Edenburg, Fauresmith, Gariep Dam, Jagersfontein, Philippolis, Reddersburg, Springfontein, Trompsburg and Waterkloof.


Burgers van die dorpie Reddersburg het probeer om hulself van ANC-politici te bevry en inwoners verskaf nou self hul eie dienste aan blank en swart, soos wat mnr. Jaap Kelder in dié video verduidelik. Dit volg nadat die Kopanong-munisipaliteit weens wanbestuur onder administrasie geplaas is.   Munisipaliteite behels nie net water, riool, elektrisiteit en paaie regmaak nie.

Al wat hier gebeur, die dienste word deur die belastingbetalers self uitgevoer.

Niemand is bevry van die korrupte ANC nie.  Inwoners weerhou wettiglik betalings aan die munisipaliteit en bedryf hul eie alternatief.

Ongelukkig is hierdie tendens besig om uit te kring na ander plattelandse dorpies en ook groot metro’s, maar ons kan nie regtig beweer ons is bevry van die ANC nie, want die grondwet is steeds daar, saam die ander korrupsie aan die gang.


Die dorp Reddersburg het hom van ANC-politici “bevry” en inwoners verskaf nou self hul eie dienste aan blank en swart, soos wat mnr. Jaap Kelder in dié video verduidelik.  Uitstekend as dienste nou self gelewer word.


Lack of water and services  – Municipality of Maluti a Phofung 

The Minister of Cooperative Governance and Traditional Affairs, Dr Zwelini Mkhize, the Minister of Water and Sanitation, Mr Gugile Nkwinti, Deputy Minister Mr Obed Bapela, Premier of the Free State – Mrs Sisi Ntombela, MEC of Cogta  – Mr Oupa Khoabane, MEC of Roads and Transport – Mr Sam Mashinini, Member of Parliament – Mr David Mahlobo, visited the municipality of Maluti a Phofung on the 03 April 2019.

The purpose of the Ministerial visit was prompted by the lack of water and communities have made this known through protests.

The visit was also meant to assess progress done in the implementation of the section 139 intervention and engage with various stakeholders such as councillors and political parties in Council, Traditional Leaders, communities and consider additional measures to strengthen and address immediate service delivery challenges, particularly challenges because people do not have water. Other challenges are the water leaks, inconsistent electricity supply, and sewer spillages, roads, etc.

The Municipality of Maluti a Phofung has been experiencing political instability, poor delivery of services, maladministration, high levels of corruption, poor financial management and high levels of debt owed to Eskom and other creditors.

Outcomes of the Ministerial Visit to Maluti-a-Phofung Local Municipality


Maluti-A-Phofung Local municipality –
Kestell: Harrismith: Phuthaditjhaba

This comes after the Greater Harrismith area, including the Tshiame Special Economic Zone, has been plagued for almost a week by water and electricity outages.

On 11 December 2019 both water and electricity services collapsed. Within two days municipal officials and community members managed to restore the water supply, but after six days the greater part of Harrismith remains without electricity. This has affected cellphone and internet services, as well as the Telkom service.

Image result for harrismith municipality services 2019


As iets soos kabels gesteel word, kan dit nie te oud wees as dit herverkoop word vir iemand se gebruik nie.    Indien kriminele nie vasgevat word of vervolg word nie, is dit ‘n ope uitnodiging om te mag steel, want niemand word daaroor vervolg nie.

As die rooi knoppies gedruk word deur onbevoegde amptenare, wat nie gedruk moet word nie, is dit niks anders as sabotasie nie.   (Eskom)

Sommige besighede kan nie bekostig om altyd gesaboteer te word nie, want dit is presies wat aangaan – hoe kan enige besigheid se deure oop bly indien die elektrisiteitnetwerk af is?

Die gevolge is dus werkloosheid en meer misdaad voortspruited hieruit.  Nog meer faktore waarvan die belangrikste instandhouding is wat nooit gedoen word nie.



“Their reasons and excuses”

A private contractor was appointed by administrator to restore power to the area. A few areas have been restored but large parts still have no electricity supply. A combination of years of criminal neglect of a very old network by the municipality, cable theft and alleged sabotage, led to the network being unable to withstand the constant interruptions by Eskom. Municipal officials, with dubious competency, did not implement the load shedding in phases, but simply threw a switch plunging the entire system into darkness by overloading the system in one fell swoop.

Meanwhile, some businesses have closed, including a factory that has closed permanently. Each closure leads to job losses and adds to the huge burden of unemployment and poverty in the area.

Furthermore, staff employed to maintain the electricity supply network has had to make do with two totally unroadworthy and unlicensed vehicles, no digging equipment, no safety clothing, and no parts or tools. Businesses and factories have had to buy cables, transformers and lend equipment, while highly paid managers sat in well-heated offices manipulating the budgets.


Wie probeer die bydraes van pensoenfondse en selfs mediese fondse/ werkloosheid steel uit die arm werker se sak uit?

Dis niks anders dan doelmatige beplanning van die topstruktuur van die ANC lede nie.   Hoeveel van hierdie amptenare wat dit gedoen het is wettig vervolg, want dit kom nie net voor by een munisipaliteit nie.   

B-BBEE – swart bemagtiging

Wie doen al die aanstellings op plaaslike regeringsvlakke?


March 2019

Pension Funds Adjudicator lashes out at municipality for failing to pay pension contributions despite deducting from employee’s salary. 

The Pension Funds Adjudicator (PFA) has ordered a municipality in the Free State to pay a member’s pension fund R2,500 in interest on contributions that it was late in paying to the fund. Adjudicator Muvhango Lukhaimane has also ordered the fund to provide the member with his latest benefit statement and an annual benefit statement for as long as he remains a member.

The ruling comes after a member of the Phuthaditjhaba Municipality Pension Fund complained to the PFA about his fund;    the administrator of his fund, Aca Employee Benefits; and his employer, the Maluti-A-Phofung Local Municipality.

The complainant said his employer was not paying monthly contributions to the fund despite deducting pension contributions from his salary. He also complained that his fund was not taking action against his employer and nor was it providing him with annual benefit statements.

The PFA found that the fund and administrator had, in fact, taken issue with the employer for not paying members’ contributions to the fund timeously.

The principal officer of the fund had opened a case with the South African Police Service at the behest of the board in late 2017, and the matter had been reported to the Financial Sector Conduct Authority in early 2018.

The administrator of the fund had also sent the employer a letter of demand informing it that it would face legal action if it failed to pay over members’ contributions.     This had prompted the Maluti-A-Phofung Local Municipality to pay all arrear contributions. However, it failed to pay interest.

In her determination, Lukhaimane says it is unacceptable that some municipalities failed to pay contributions to pension funds in respect of employees, despite the amount being deducted from the salary. The issue of non-compliance by municipalities with regard to payment of contributions affected members’ investments and risk benefits, which cannot be paid due to outstanding contributions.

In terms the Pension Funds Act an employer is liable to pay interest on contributions not paid timeously. This was also confirmed by the rules of the fund, the determination says. Thus, the employer contravened the rules by not paying contributions timeously.

The employer was duly ordered to pay the fund the complainant’s outstanding late payment interest in the amount of R2,520.


The North West provincial government has placed seven municipalities under administration. This brings the total number of municipalities under administration in the province to 15.   The provincial government is citing financial distress, collapse of service delivery and instability in council as the reasons for the intervention.

The affected municipalities include JB Marks in Potchefstroom and Ventersdorp, Mamusa in Schweizer-Reneke, Lekwa Teemane in Bloemhof and Christiana, Ratlou in Setlagole, Tswaing in Delareyville, Madibeng in Brits and Dr Ruth Segomotsi Mompati District based in Vryburg. 

Political analyst, Professor Andre Duvenhage, says the fact that it’s now 15 out of 21 municipalities that are under administration, is a sign of a failing local government.


The Ditsobotla Local Municipality in Lichtenburg, North West has promised to pay about R4 million towards employees’ pension funds, medical aids and other third party amenities by this Saturday. Contributions have not been paid into the funds for the past six months although the money has been deducted from employees salaries. The municipality has admitted that it used the money to cover the municipal debt.




North West Premier Job Mokgoro announced that the province’s executive council (exco) had dissolved the entire council of the Mamusa Municipality in Schweizer-Reneke.

Fifteen out of 22 municipalities have all been placed under administration due to a number of factors, including the mismanagement of funds, maladministration and councillors neglecting their legislative duties.



There are at least 100 ANC-run municipalities countrywide that are in worse shape than Tshwane, where the provinces fail to intervene. He says the fact that the Gauteng provincial government is picking on the City of Tshwane shows a clear political agenda.


The Gauteng provincial government has placed the City of Tshwane under administration amid a “number of governance failures” raised in recent years.

“Some of the reasons include all these allegations of corruption that have been taking place, all these illegal appointments, inability to deal with findings and recommendations of the AG, the collapse of service delivery; there were no ward committees since 2016,” Maile told eNCA.


Plans by the Gauteng provincial government to put the City of Tshwane under administration are clearly politically motivated and the Democratic Alliance (DA) will fight it, if need be in court, says James Selfe, who heads up the DA’s governance unit.

Een gedagte oor “Freestate and Northwest municipalities corruption, non-payments … audit”

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