Makhado financial calamity: DA requests municipal executives be hauled before the legislature co-operative governance committee

THE Democratic Alliance (DA) in Limpopo believes the financial calamity at Makhado local municipality should be tackled by the provincial legislature committee on co-operative governance.

The party has made a request to the chairperson of the committee that municipal executives be called to account and provide explanations for the poor financial performance.

This follows the attachment of two bakkies and a grader by the sheriff of the court on Wednesday.. The assets were attached after the municipality failed to abide by the court order to pay just over R2, 5 million to a service provider.

The municipality reportedly indicated that it will appeal the court order.

DA’s Lindy Wilson said the municipality has been operating on an unfunded budget for the past two financial years and was unable to pay creditors.

“This municipality has been a cadre cash cow for years, irregular investments at VBS Bank of more than R60 million, now forfeited, and political interference in senior appointments has brought Makhado to financial ruin,” Wilson said.

She said the municipality has not made a request to department of cooperative governance, human settlements and traditional affairs (COGHSTA) for assistance with a voluntary financial recovery plan despite the financial challenges.

“The department of COGHSTA is seemingly oblivious to Makhado municipality’s financial woes, either because monthly budget statement reports are not received, or scrutinised, or because there is a lack of transparent reporting.

“The DA expects that this meeting will be called by the Limpopo legislature committee so that the Makhado delegation is ordered to appear and be transparent about the crisis which the municipality is facing,” Wilson said.