Ngaka Modiri Molema District Municipality mayor Khumalo Molefe may have breached the law when he used municipal resources to solicit money from service providers to fund a company not associated with the municipality.
Documents seen by the Independent Media reveal that on June 22, Molefe sent an email to a service provider requesting R20 000 to fund a private company’s logistical expenses unrelated to the municipality.
In the letter signed by Molefe, he stated that his office received a request in the form of a proposal from a company advocating for the rights of the poor and the indigent arts, culture, and Heritage practitioners.
“The above-mentioned NPO has produced a musical production titled ‘Nkgo ya Mosadi and Ke rona’ which will be premiered at the National Arts Festival from 22–29 June 2023. It is against this backdrop that I request your company to contribute at least R20 000 towards transport and accommodation to enable the NPO to attend the festival.”
Molefe also advised the service provider to make the payment into an FNB Gold account owned by the NPO. He further said that the service provider contacted the directors of the NPO for further information regarding the logistical arrangements.
The Local Government Municipal Finance Management Act no. 56 of 2003 stipulates that no political structure or office-bearer of a municipality may set up a relief, charitable, trust, or other fund.
“A municipality may in terms of section 7 open a separate bank account in the name of the municipality for the purpose of a relief, charitable, trust or other fund. Money received by the municipality for the purpose of relief, charitable, trust of other funds must be paid into a bank account of the municipality,” reads the act.
Furthermore, it stipulates that: “The money may only be withdrawn from the account by or on the written authority of the accounting officer acting in accordance with decisions of the municipal council, and for the purpose for which, and subject to any conditions on which the fund was established or the money in the fund was donated for.”
Asked last week to comment on whether he was authorised to use the municipal resources to solicit money for his own personal interests and whether he had declared to the Treasury and the auditor-general his activities, Molefe did not comment.
On November 21, Independent Media sought a comment from the National Treasury but did not get any response despite promises to do so.
This was not the first time Molefe faced allegations of abusing his powers to extort funds from service providers. In January this year, Independent Media published an article where Molefe was accused of extorting money from local service providers and allegedly using the funds to build “a compound”.
Sources said he also bought his wife a BMW and several cars, including a Toyota Hilux. They claimed this was after service providers were called to a secret meeting with Molefe and requested to donate money.
The sources said these are businesses that are currently providing services for the municipality. Asked if these are some of the contracts he issued last year, the sources said it was not clear.
“He has been in the office for over a year now and he is building another double-storey house. He also bought his wife a BMW X3, a Toyota Hilux, and a couple of vehicles for himself,” said the sources.
They added: “He has been meeting with the service providers regularly. He started by calling them privately into a meeting in Mmabatho, where he had one-on-one meetings.”
They said Molefe has been receiving payments from the service providers since he met with them.
“There is a list of payments that have been made to him every week. He works with someone in the finance department and they always update him after payments are made. This person needs to be stopped. He is getting out of hand with his behaviour. Right now, he is trying to control everything that has to do with service providers in the municipality,” the sources said.
Last year, Molefe shocked his ANC comrades after he dished out at least five contracts shortly after he was elected. He is said to have done the same again a few months later.
The issuing of the contracts allegedly happened in a business forum meeting in Deelpan, where Molefe allegedly issued instructions to two officials from his office, who were present at the meeting, to share the needs of the municipality with local contractors.
The contracts were then issued to different companies, which then invoiced the mayor’s office directly for payment.
The Star