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DA accuses Mogale City of corruption involving a R9 million invoice

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The Democratic Alliance (DA) in Gauteng is accusing the Mogale City Local Municipality of creating a R9 million invoice for Aqua, instead of paying them for services rendered to the Municipality.

The party says while in the process of making the payment, an email was sent to the municipality instructing them to transfer the money to a different account as opposed to the original account provided by Aqua.

According to a statement released by the party on Sunday, the R9 million was subsequently deposited without verification of the account details.

The DA says in the statement that it is alleged the second account belonged to Motlatsi Attorneys.

“Once the R9 million was paid, it was immediately transferred to different accounts, raising suspicion by the bank who alerted the municipality’s Chief Financial Officer (CFO),” reads the statement in part.

“It is further alleged that the Municipal Manager, and another manager who works under the CFO, authorized the transfer to the new account without the knowledge of the CFO. In July last year, the CFO opened case number 239/07/2020 at the Krugersdorp Police Station, regards the missing funds with the case later transferred to Palm Ridge Commercial Court,” says the DA, noting that nine months have passed since a case was opened and that no one has been arrested nor has the money been recovered.

“The fact that the Municipal Manager and another manager are alleged to have authorized this transaction clearly indicate that they are complicit and must account for this R9 million. Money laundering, financial mismanagement and corruption are serious crimes that have led to the collapse of many ANC-led municipalities across the country. Mogale City is debt-ridden, and service delivery remains in dire straits while millions are stolen from the coffers to enrich few individuals in high ranks within the local government,” says the DA.

The DA says it will write to both the Premier, David Makhura and the Gauteng MEC for Co-operative Governance and Traditional Affairs, Lebogang Maile to establish the progress of the case.

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