The Giyani Municipality in Limpopo has allegedly acted as a financial service provider.
The municipality has given the Mopani District Municipality a R15 million interest-free loan.
The Giyani municipality has acknowledged that its action is illegal.
According to a council resolution dated 30 August, the municipality plans to inform the provincial Treasury and the office of the Auditor-General about the unauthorized expenditure.
DA councillor Richard Shivambu says corruption is rife in the municipality.
“We are even not sure if the money has been returned, look they can write on paper to say the money has been returned but we are not sure that the money has been returned. The district should have gone to the bank to the financial institution to borrow money where they could also add interests when they return the money. When it was presented to council they said they knew it was wrong but they did it. They are not ready basically to get rid of corruption”.
The Mopani District Municipality in Limpopo has confirmed that the Giyani Municipality has given it a R15 million loan.
The district municipality says it was in financial doldrums and failed to pay its workers in November last year.
Mopani District Municipal spokesperson Witness Tiva says they’ve got a good working relationship with the five local municipalities in the district.
“I can confirm that in October 2017 we approached the Greater Giyani municipality and requested assistance after we had some financial constraints and the R15 million interest free loan was granted the money was paid back within a week. As the district municipality and our five local municipalities we support each other in our effort to ensure that we continue to render services to our communities without any hindrance”.
