REPORT | Dihlabeng faces R850 million write-off as MPAC report recommends disciplinary and criminal action

By Staff Reporter

BETHLEHEM – Dihlabeng Local Municipality could write off more than R850 million in unauthorised, irregular, fruitless and wasteful (UIF&W) expenditure incurred during the 2024/2025 financial year if Council adopts recommendations contained in an investigation report by the Municipal Public Accounts Committee (MPAC).

The report recommends that Council approve the write-off of R850,090,064.59 as irrecoverable solely for accounting purposes to regularise the municipality’s financial statements.

It stresses, however, that the accounting write-off does not exempt any implicated officials from criminal prosecution or disciplinary action in terms of the Municipal Finance Management Act (MFMA).

According to the report, Council should also endorse criminal cases already opened with the Hawks and direct that further criminal charges be instituted against other officials implicated in the remaining compromised transactions.

It further recommends that formal disciplinary proceedings and consequence management be instituted against the Accounting Officer and the Chief Financial Officer (CFO) for their alleged statutory failure to implement strict internal controls and prevent financial misconduct.

The report notes that writing off the expenditure would regularise the municipality’s ledger for audit purposes but warns that internal financial systems will remain compromised unless institutional consequences are enforced.

It also cites provisions of the MFMA requiring municipalities to report criminal conduct to law enforcement agencies and outlining the statutory responsibilities of senior financial officials.

The recommendations come amid allegations that a further R9 million in municipal expenditure cannot be accounted for and was allegedly incurred without the knowledge or approval of Council.

Step Up SA News has approached councillor Thwala, Dihlabeng Local Municipality MPAC chairperson for comment on the proposed write-off, the recommended disciplinary and criminal actions, and the allegations relating to the additional expenditure.

The municipality’s response will be published once received.

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