News24

DA backs bid to keep funds from municipality

2013-01-17 12:58

Cape Town - The DA has welcomed the National Treasury's decision to withhold funds from the Nala municipality in the Free State.

The Treasury decided to stop the transfer of funds to the municipality following four years of financial mismanagement, as identified by the Auditor General (AG).

"This is the first time such an intervention has taken place," said Democratic Alliance spokesperson David Ross.

Section 216(2) of the Constitution stated that the National Treasury "may stop the transfer of funds to an organ of state if that organ of state commits a serious or persistent material breach of those measures".

The AG had identified serious problems in Nala municipality in 2008. These included maladministration, flouting of procurement processes, corruption, and fraud.

No one held accountable

The municipality also failed to submit audit reports and financial statements for 2009/10 and 2010/11, or to complete performance management reports as required by the Municipal Finance Management Act (MFMA), Ross said.

None of the AG's recommendations were implemented, and no one was ever held accountable.

"The intervention by National Treasury is the first of its kind and sets a welcome precedent. The DA is satisfied that the Minister of Finance, Pravin Gordhan, has taken a bold step by approving the intervention, which sends a clear message to public entities that corruption and non-compliance will not be tolerated."

While the intervention was welcomed, the implementation and the corrective measures put in place to rehabilitate the municipality needed to be closely monitored.

Gordhan should be commended for taking decisive action in this case, said Ross.

The next step was to ensure that Nala municipality was rehabilitated effectively and efficiently to ensure that the people of Nala finally got the services they deserved from government, he said.

Comments
  • Mandy Casey - 2013-01-17 13:02

    DA and ANC finally agree on something.

      charlesbronson.bronson - 2013-01-17 13:21

      cANCer thief's!!!

      kalabafazi - 2013-01-17 13:31

      So it took the anc 5 years to do something about 1 small problem in some small backwater municipality. Where are those that syphoned off all the funds, where are the criminal charges? Those that benefitted from these activities are sitting at home enjoying the spoils.

      alan.jerrold - 2013-01-17 15:12

      Nala is a drop in the ocean. There are several hundred more municipalities (mis)run by the ANC that need to have our hard-earned taxpayer funds witheld. In fact, a taxpayer revolt looms closer and closer. How can approximately 5% of the population support the other 95% when the ANC waste and steal tax money?

      bullet.proof.9400 - 2013-01-17 15:58

      eish where are the cadres to get hteir monies from now..... Jacob Zume. eish man how can this happen, we are loyal comrades oops cadres. Jacob Zuma please fire Gordan how am I goin to pay for my new BMW 735iL and my 4th wife and 29 children. how how how

  • heini.botes - 2013-01-17 13:05

    It's high time the rest of the country start doing the same. Where can I sign my name!

      p.borchard - 2013-01-18 08:25

      News24 - Why aren't we getting any updates about the current state of towns like Sannieshof where the taxpayers got gatvol enough to stand together and show the anc how to run a municipality?

      tersia.louw.12 - 2013-02-04 20:18

      Or news on what's happening in Potch?

  • zacharias.delange - 2013-01-17 13:05

    here is hoping for another DA mayor to take charge, Potchefstroom was just the beginning.

  • Glen.E.Huysamer - 2013-01-17 13:12

    Why are the members who were in control of this municipality not being arrested and their assets seized until clarity about all this theft, fraud and purposeful mismanagement is fully investigated. Surely there are numerous here who are criminally liable and accountable. If Provin Gordhan and the ANC were serious about changing things then clean up and make a good example, and if the DA has been taken by surprise by this ANC action and not quite ready to say what needs saying, I will! Arrest some of these fat arses'

  • willie.erasmus - 2013-01-17 13:15

    Are we really asking too much to just see that the government applies the law instead of just taking from the people. This is most def a move in the right direction!

  • freddie.jones.58367 - 2013-01-17 13:19

    Good! But why wait so long?

  • matsutle.aphane - 2013-01-17 13:27

    " this is the first time such intervention has taken place" a good wonderful move this time WELCOMED this is a way to go now,KEEP IT UP 'PRAVIN GORDHAH' AN THE GOVERMENT WISH U LUCK,AN IMPROVEMENT

      bobby.rosewood.1 - 2013-01-17 15:08

      I agree. Good news.

  • Eterni80 - 2013-01-17 13:30

    the only money any cANCer person should be allowed to touch is their salary when it comes out of an ATM.

  • lizette.vanwyk.arts - 2013-01-17 13:31

    Investigate all of them, we have to start somewhere. Great job! Let's get rid of the bad apples.

  • steve.ritchie.739 - 2013-01-17 13:33

    The rot is deep-seated all over SA. This is just a small drop in a very large ocean. Why has it taken since 2008 for the cANCer to do something? This is not the only municipality in such a shocking state. Maybe this is another ruling party ploy of singling out a certain area, making a noise about them and using them as scape-goats to divert attention away from the real issues that have beset SA since 1994. Another cANCer smoke-screen that will eventually fizzle out. Wake up voters, the gravy train can only hold so many coaches before it overflows and derails.

  • neil.lovegrove - 2013-01-17 13:39

    I rather suspect that this is merely a way to deal with cANCer opponents within the ranks of the Nala municipality management....perhaps DA??

  • Erna - 2013-01-17 13:44

    While good news, it will be better news if we heard that all the people responsible are fired. Not suspended, not disciplined, but fired.

      werner.nel.712 - 2013-01-17 14:30

      And prosecuted!

  • Michael Hawthorne - 2013-01-17 13:45

    Should DA supports anc bid to stop funding of municipality...

  • rob.bayliss.94 - 2013-01-17 13:46

    STOP: Consider who is getting the rough end of this, who will not be properly serviced...ordinary people who are (maybe) paying for services. The culprits in the municipality should be identified and punished; fire them, recover the funds that have been misappropriated. Rehabilitation and re-education is a soft option!

  • ian.robertreid - 2013-01-17 13:49

    Da we suppport u 2keep sticky fingers out of the money pot??

      Deon - 2013-01-17 14:16

      This municipality is probably not run by the DA.

      richard.hipkin - 2013-01-17 14:36

      Nala is an ANC municipality..

  • lynda.downey.5 - 2013-01-17 13:57

    all municipality's should have the same done to them - they are thieving inefficient people - just see them all lying around in the street doing nothing - sleeping on the job from the top to the bottom.

  • rollingstone.kanyane - 2013-01-17 13:59

    So what accountability start from above down to the ground what about the R200m security upgrade? nxaaa

  • Dan - 2013-01-17 14:01

    So, when will we as taxpayers be able to start witholding our money, because of the governments abuse thereof, or does this form of corruption not extend to them?

  • DrGonzoSA - 2013-01-17 14:03

    "no one was ever held accountable." Enough said. State sponsored corruption

  • andre.fourie.980 - 2013-01-17 14:06

    Not just thievery.Its like everywhere in the country at the moment where only card carrying members of the ANC gets top positions, even though they are by far not qualified to do the job.

  • chris.khanye - 2013-01-17 14:24

    Most municipalities are simply ponzi schemes - cadre deployees greed!

  • mullervince - 2013-01-17 14:44

    Neverless, it's a disgrace to firstly have these uneducated, unexperienced people put in charge of the tax payers money. What are they going to do about it, and how will these culprits repay the money stolen????

  • tlotlo.phele - 2013-01-17 14:44

    @ Andre we have the same problem where white Guys are given positions based on skin colour even calling the bosses oom . So charity begins @ home

  • brian.dlamini - 2013-01-17 14:46

    Screw news 24!! Why couldn't they have just written about treasury's stance?! Why does this need DA approval 2 b newsworthy.. When u link dots u sometimes get a picture and its getting a bit scandalous on the political reporting

      tafkad.tafkad - 2013-01-17 15:27

      Obviously the DA called into N24 with the story which is why it has been reported in this manner, stop being so paranoid.

      mafa.smith.9 - 2013-01-17 18:07

      paranoid indeed,...the treasury's is commendable,in fact all the new post 94 rural municipalities should be scrapped,

  • rob.bayliss.94 - 2013-01-17 15:00

    After 18 years this is the first time that such action has been taken! What a fine and principled record; I wonder how much taxpayers money has been redirected and how many kids have been ill from inadequate services and how many kids have been unable to reach their eductional potential in that 18 years. Much too little (get rid of the thieves and recover the absconded funds) and much too late (implement the same, but stronger actions, to any municipality where there is a hint of inappropriate or ineffective activities).

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