A damning Special Investigating Unit (SIU) report has uncovered maladministration, fraud and corruption in the Amahlathi Municipality.
The investigation was authorised by former President Jacob Zuma in 2015. The SIU found among others, irregular expenditure of R92 million.
The municipality has also been beset by violent protests since late 2018 as the youth of Stutterheim demand jobs. A municipality in ruins. The aftermath of collapsed systems, corruption cover ups and deep political divisions.
The report fingers high ranking African National Congress (ANC) leaders at regional level and officials working together to embezzle municipal funds.
Cooperative Governance MEC Fikile Xasa says the three people involved must be pursued by the law. He says these include the former municipal manager, the company and the official that is at the center of this corruption.
Xasa says the president should investigate the dealings of the municipality and that money should be tracked because it cannot be that money is misused and there are no consequences.
DA Councillor Richard Pickering says no municipality can lose over R90 million with no explanation. He says other dodgy dealings include a security company payment of R620 000 for a 12-day job.
Local government stakeholders believe it’s the work of a political syndicate which involves top ANC officials that are looting municipalities across the Eastern Cape.
ANC Provincial Secretary Lulama Ngcukaythobi says though this is not a capture, the allegations are of that nature which is something worrying. He, however, says the investigators must be given space to conclude their work.
The SIU report will be officially tabled to the council on the 25th of January.
The ANC has already resolved to replace the Mayor, Speaker and Chief Whip.
Opposition parties are calling for the dissolution of the council.