Free State municipality quizzed on messy finances

The Auditor-General has asked serious questions about financial mismanagement in the municipality of Matjhabeng in the northern Free State. The provincial auditor has discovered irregularities in the manner in which companies collect debt on behalf of municipalities and warned that it should preferably be done in-house.

Matjhabeng has appointed another company, MMS Collections, after the previous ones had failed to provide supporting documentation for collections made. Yet they received nearly R6 million.

Matjhabeng won the court case against Interactive Trading, and another case against Goldfields Trading is still not finalised. Nearly R1.5 million has been claimed this year for work done. However, Matjhabeng's debt has not been reduced -- it is still R900 million.