WELKOM – Matjhabeng Local Municipality is facing fresh allegations of financial misconduct and governance failures, with sources inside the municipality claiming that recruitment and contractor appointments have continued despite an approved Financial Recovery Plan (FRP) and a recruitment moratorium imposed during the provincial intervention.

The allegations have reportedly been brought to the attention of relevant authorities and law enforcement agencies.

Claims of irregular appointments, expired tenders and alleged backdating of bid records raise questions over compliance with recovery plan

At the centre of the concerns are claims that several contractor appointments and procurement processes may have been undertaken outside established municipal Supply Chain Management (SCM) procedures and the requirements of the Municipal Finance Management Act (MFMA).

Questions over the Financial Recovery Plan

Matjhabeng is under significant financial pressure, making compliance with its FRP particularly important.

The recovery plan is intended to strengthen financial discipline, contain costs and address pressures including the municipality’s wage bill.

Sources allege that recruitment and contractor appointments have continued despite a moratorium imposed by Free State EXCO Representative Makalo Mohale, who was appointed as part of the provincial intervention aimed at stabilising the municipality.

If confirmed, such appointments could undermine the objectives of both the provincial intervention and the FRP by creating additional financial commitments for the municipality.

Allegations over bid committees

The most serious claims relate to the municipality’s SCM processes.

Multiple sources allege that contractors were appointed without the required Bid Specification, Bid Evaluation and Bid Adjudication Committees properly considering the appointments.

It is further alleged that officials in SCM, Corporate Services, Infrastructure, Public Safety and Community Services were placed under pressure to backdate minutes of bid committee meetings.

According to the allegations, backdating the minutes would create a retrospective paper trail intended to make appointments appear compliant after decisions had already been taken.

These claims have not been independently verified.

If official records were deliberately manipulated or backdated, the matter could have serious disciplinary, financial and potentially criminal implications.

Expired tenders allegedly revived

Further concerns relate to the alleged use of expired tender advertisements.

Sources claim that certain contractors were appointed using tender advertisements that had closed months earlier, without the required process to extend the validity period.

Municipal SCM procedures generally require tenders to remain valid for a specified period. Where an award cannot be made within that period, the municipality must follow the applicable process for extending validity, where permitted, or cancel and re-advertise the tender.

Sources allege that, in some instances, bidders were not formally approached to extend tender validity and that expired tenders were instead allegedly “revived” to facilitate appointments.

High-value municipal projects named

The allegations reportedly involve several high-value renovation and maintenance projects, including:

• Thabong Community Hall;
• Meloding Community Hall;
• Virginia municipal offices;
• Welkom Swimming Pool; and
• municipal fire stations.

Sources allege that some appointments did not follow the prescribed competitive bidding process and that certain project costs may have exceeded market-related values.

These allegations have not been independently verified.

Potential financial implications

If an investigation establishes that procurement was conducted outside the applicable legal and municipal SCM framework, the resulting expenditure could potentially be classified as irregular expenditure and would require appropriate investigation, reporting and disclosure in the municipality’s financial records.

Such findings could also place further pressure on Matjhabeng’s efforts to implement its Financial Recovery Plan and restore the municipality’s financial sustainability.

The allegations have reportedly been referred to relevant authorities, including law enforcement agencies, for investigation.

Vista Newspaper has approached Matjhabeng Local Municipality for comment on the allegations, including the alleged breach of the recruitment moratorium, the contractor appointments, the use of expired tenders and claims concerning bid committee records.

• The municipality’s response will be published once received.

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