KROONSTAD – There must be an immediate overhaul of the Moqhaka Local Municipality indigent register, quarterly verification processes mut instituted, and consequence management against officials responsible for the continued mismanagement of indigent subsidies must be done.
The Municipality’s 2024/25 Audit Action Plan highlights a deeply concerning finding: R26,7 million in overstated indigent subsidies, with service charges understated by the same amount.
Cllr. Palesa Mpele, DA Councillor Moqhaka Municipality, says this indicates that free services were granted to individuals who did not qualify, whilst genuinely indigent residents may have been deprived of support.
“Alarmingly, deceased individuals received R23.9 million in subsidies, government employees earning above the qualifying threshold received R423 074, invalid ID holders benefited to the tune of R2,2 million, and municipal suppliers and their spouses’ accessed subsidies despite having business interests,” she says.
Mpele indicates that weak internal controls lie at the heart of this governance failure. The indigent register is verified only once every three years, systems permit applications without proper ID validation, and there is no cross-checking against government employment databases or supplier interests. This is a repeat finding from 2023/24, demonstrating management’s failure to implement corrective measures.
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The effect on the community is severe: misallocated funds reduce resources available for deserving households, undermine revenue collection, and erode public trust. Representing 2.3% of potential annual revenue, this misdirection threatens financial sustainability and deepens inequality. Residents deserve accountability, transparency, and fair access to municipal support.
The systematic failure to manage indigent subsidies properly not only wastes public resources but also violates the fundamental principle that support should reach those most in need. Without immediate intervention and strict oversight, this crisis will continue to undermine both municipal finances and community welfare.
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