FREE STATE – Tokologo Local Municipality is spending more than R2 million a year on a contracted drain truck service, raising fresh concerns about irregular expenditure and the management of scarce public funds.

The long-running contract for a drain truck, commonly known as a honey sucker, has become a key example of the municipality’s expenditure on contracted services. According to findings by the Auditor-General, contracted services remain one of Tokologo’s largest areas of expenditure and have repeatedly been flagged for concern.

The municipality has reportedly continued to use service providers in circumstances where service level agreements (SLAs) or memoranda of understanding (MOUs) are not in place. The absence of such agreements can leave the municipality without clearly defined performance standards, accountability measures and enforceable obligations.

Drain truck contract

The drain truck contract is particularly concerning because it relates to a basic sanitation service. Tokologo is paying more than R2 million annually for the service, despite no competitive bidding process having been undertaken for the long-running arrangement, according to information provided by the Democratic Alliance (DA).

Cllr. Hismajesty Maqhubu, DA Councillor Tokologo Local Municipality, says this constitutes irregular expenditure and has questioned whether the arrangement represents value for money.

Truck could cost less than one year of the contract

A recent market comparison conducted by a DA councillor responsible for oversight found that a new drain truck could potentially be purchased for significantly less than the municipality’s annual expenditure on the contracted service.

A new FAW JK6 15.220 FL 8000L Septic Tank Truck, with a standard two-year unlimited-mileage factory warranty, is priced at approximately:

New truck costs less than contract

• R1 029 250 for a manual model; and
• R1 249 250 for an automatic model.

At those prices, the municipality could purchase its own truck for substantially less than the reported annual cost of the current contract.

The comparison has raised questions about whether continuing to outsource the service is financially sustainable, particularly when the municipality is already facing financial and service-delivery pressures.

The justification previously presented to Council for outsourcing municipal fleet services was reportedly that the existing fleet had become too expensive to maintain because of its age.

However, the municipality has not, according to Maqhubu, presented a comprehensive cost-benefit analysis showing that continued outsourcing is more economical than replacing ageing fleet assets.

Auditor-General findings

The drain truck arrangement forms part of broader concerns about Tokologo’s management of contracted services.

The Auditor-General has repeatedly identified contracted services as a significant area of expenditure, while questions have also been raised about the absence of formal agreements governing some services.

Without properly structured contracts, municipalities can face difficulties enforcing service standards, monitoring performance and ensuring that payments are linked to clearly defined deliverables.

For residents, the issue extends beyond financial compliance. A drain truck provides an essential sanitation function, making the municipality’s ability to procure and manage the service effectively directly relevant to public health and service delivery.

The DA is calling for a comprehensive investigation into contracted services identified in the Auditor-General’s findings, as well as greater scrutiny of expenditure that may constitute irregular expenditure.

It is also calling for a costed plan to rebuild Tokologo’s municipal fleet and for consequence management where officials are found to have approved expenditure in breach of applicable financial-management requirements.

The central question is whether Tokologo is receiving value for money from its contracted services – particularly when a basic sanitation service is costing the municipality more than R2 million every year.

For a municipality under financial pressure, ensuring that essential services are delivered at a reasonable and properly scrutinised cost is critical to protecting public funds and maintaining service delivery.

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