Municipality overpays R22m to companies

2012-07-09 10:50

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Johannesburg - The Mogale City municipality has paid over R22m to companies not listed on its service provider database, The Star reported on Monday.

The municipality failed to report the expenditure to a full council sitting for its approval.

According to its report on the 2010 expenditure administrative perspective, drafted by municipal manager Dan Mashitisho, the over-expenditure happened when the municipality was preparing to host Portugal for the 2010 Fifa World Cup.

Mashitisho, with mayoral permission, agreed to spend R1.5m to accommodate the Portuguese team at the Valley Lodge on the West Rand.

The Democratic Alliance in Mogale City said the money could have helped the council when it was struggling financially and considering applying for a R191m bank loan to complete capital projects.

According to an auditor's report, the council spent R22m after an approved budget of R6.2m in February 2010 ballooned to R28.8m at the end of the Soccer World Cup.

The DA has refuted a statement by municipal spokesperson Nkosana Zali that the council condoned the over-expenditure.

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