A whistleblower employed within the Port St Johns Local Municipality has closed the tap on irregular and unauthorised transactions that have seen the municipality lose at least R1.6 million, which was fleeced from its bank account.
The startling revelation was made by the municipality’s Municipal Public Accounts Committee (MPAC) chairperson, Councillor Sivuyile Mavimbela, during a media briefing held at Port St Johns Town Hall on January 12.
Mavimbela said the money was transferred in tranches of R50 000 to R100 000 to credit cards of 16 individuals, none of whom are associated with Port St Johns Local Municipality.
The illegal transactions date back to July 2021, when a total of R500 000 was siphoned from the municipal account in that month alone, with the last transaction taking place on December 17, 2021.
“We are a poor municipality that relies on grants with no source of revenue and R1.6 million is a lot of money to just disappear like that.
“The money would have done a lot in terms of service delivery to the majority poor population of the municipality,” lamented Mavimbela.
Mavimbela further revealed, on January 14, that the municipal council had resolved to approach the provincial treasury and Department of Cooperative Governance and Traditional Affairs (COGTA) to assist with a forensic investigation into the irregular transactions.
He also told Mthatha Express that the council had further placed the municipal chief financial officer, Baliswa Mbana, on special leave for dereliction of duty, after she failed to report the irregular transactions to council.
An auditing company has also been roped in to carefully scrutinise the illegal transactions, according to Mavimbela.
The municipal council has also tasked the Mayor, Nomvuzo Mlombile-Cingo, municipal manager, Tshaka Hlazo, and the budget and treasury portfolio head to investigate the matter and report back to council within 14 days.
Police are also investigating the matter after the municipality opened cases.
