Kokstad reeling after cashier scandal

2014-05-28 00:00

WHILE reports of employees who had plundered the coffers of the Greater Kokstad Municipality are surfacing, residents there are wondering if the council’s new quick fix for potholes stemmed from the municipality’s latest financial woes.

The municipality is under severe financial stress, which continues to intensify day-by-day despite belt-tightening strategies.

Now council workers have resorted to filling the potholes in the town’s streets with soil.

The Greater Kokstad Municipality has been facing accusations of gross maladministration, bankruptcy and poor financial management.

Community structures like the Ratepayers Association and local Chamber of Commerce protested last month, calling for the municipality to be taken over by provincial government.

A few months back, Mayor Nosisa Jojozi admitted they were facing tight cash flows.

Now, reports are that three cashiers have reportedly been fired after allegedly embezzling a huge amount of money and another allegedly resigned after auditors found she had allegedly defrauded the municipality of close to R1 million.

Lennox Mabaso, the provincial Co-Operative Governance and Traditional Affairs spokesperson, would not comment on rumours that the municipality will be placed under section 139.

He said the municipality is under close scrutiny by MEC Nomusa Dube-Ncube. “We are busy doing assessments and analysis on the state of the municipality’s performance and financial status,” said Mabaso.

Responding to questions via e-mail, Greater Kokstad municipal spokesperson Sabelo Ncwane said they cannot confirm how much money has been embezzled or who was responsible for the losses as the matter was under investigation.

“It is therefore still an untested allegation that one municipal employee resigned immediately after the municipality was defrauded of R850 000. Appropriate action will be taken … however, the municipality has opened a criminal case in connection with those allegations,” said Ncwane.

He said although the municipality is experiencing a tight cash flow, it is still providing basic service delivery so there was no crisis.

On the patching of potholes with red soil, he said this was a temporary measure due to logistical challenges over the purchasing of asphalt, but that has been sorted out and potholes will be attended to.

Join the conversation!

24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Inside News24

Traffic Alerts
There are new stories on the homepage. Click here to see them.


Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.


Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.