Where is the R500 million?

THERE appears to be no trace of the R500 million that was allocated by the Northern Cape provincial government to improve service delivery in Kimberley.

Opposition parties have highlighted how the state of the city has deteriorated drastically and have questioned why the R500 million that was allocated towards “restoring the sparkle of the city” cannot be accounted for.

Political parties are convinced that the money was used towards the ANC’s local government election campaign last year.

ANC provincial secretary Deshi Ngxanga denied that the party ever used any of the funds for political purposes.

“I can say without hesitation or consulting anyone that the ANC never received a cent from the state. We keep our distance from the state and have never accepted any money from the state.”

According to Sol Plaatje Municipality, the R500 million never appeared in its books, while the Department of Roads and Public Works indicated that it had “nothing to do with the allocation of funds”.

Enquiries were referred to the Premier’s Office, while Premier Zamani Saul, during Thursday’s State of the Province address, claimed that “significant progress” had been made to beautify the city.

“To date 755 leaking and burst water pipes were fixed, 80 major sewer blockages have been unblocked, potholes in 187 streets had been completed, 1,242 street lights were repaired and illegal dumps were cleared in 10 areas. Potholes and blockages are being fixed all over Sol Plaatje.”

He acknowledged that “lots of work” still needed to be done to turn the city around.

“Like many other cities in the country, Sol Plaatje Municipality is confronted by major service infrastructure challenges and as the provincial government we are ready to collaboratively work with the municipality to address all of these.”

Saul stated that part of the R500 million investment in Sol Plaatje Municipality was used to purchase the Eskom building in Kimberley.

“A feasibility study is currently under way to convert the building either into student accommodation or social housing units. In addition to this, 24 hectares of land has been bought on the N12 near Kimberley where township establishment will take place once provision for bulk capacity has been made.”

EFF caucus leader Pontsho Mocwana said they would refer the matter to the public protector, special investigations unit or Hawks, should any irregularities be unearthed.

“A task team, co-ordinated through Norman Shushu at the Premier’s Office, was supposed to provide a monthly progress report. To date, not one update has been provided.”

He added that money was supposed to have been allocated to fix the Gogga pump station as well as the overflowing water on the R31.

“We will mobilise our forces to block that road.”

He added that the Sol Plaatje Municipality chief financial officer, during the final budget and benchmark assessment report for the approved budget for 2020/21 council meeting on February 22, had mentioned that the municipality was experiencing financial constraints where operational costs amounted to R180 million per month.

“I asked her where the R500 million was and she replied that the municipality had never received any of it. Either the premier was lying or it was just an electioneering stunt because there is zero improvement on service delivery. The municipality is a disaster.”

Sol Plaatje Service Delivery Forum councillor Dennis Pienaar pointed out that the former executive mayor, Patrick Mabilo, had during an interview in April last year expressed gratitude for the money and had outlined plans to rebuild the city and pay its debts to Eskom.

“The chief financial officer advised us during a council meeting on February 22 that the R500 million was never gazetted, therefore it was never received by the municipality. We suspect there is financial misconduct.”

He added that the adjustment budget should not be approved while there were questions regarding the missing funds.

“No one is able to account for the funds. This money has legal implications for the municipality. If there is any wrongdoing or criminality, individuals must be held personally liable to repay the money.”

DA caucus chairperson Elize Niemann believed that the money was directed towards the ANC election campaign last year.

“Now that the elections are long over, we wonder if the R500 million will be made available for what it was intended for. The chief financial officer at Sol Plaatje Municipality indicated that an investigation would be launched into the funds. We want a progress report and detailed breakdown on the work done.”

Good councillor Elizabeth Johnson believed that the 2021/22 budget should be kept in abeyance until the “non-existent” funds were accounted for.

“The budget cannot be passed when the money was never seen. If the funds were used to pay off debts and Eskom, there does not appear to be any reduction in the overdue amounts because Sol Plaatje Municipality is in the red and owes Eskom and the Water Board millions of rand. Meanwhile, the city is filthy and an eyesore.”

She also believed that the funds were redirected to fund the ANC’s election campaign.

ACDP councillor Roddy Loff stated that the R500 million did not reflect anywhere in the municipality’s financial reports.

“If it is not in the coffers of council, how can there be no record of such a large amount of money when promises were made in the media last year to fix the city?

“There was only a lick of tar on the road while the potholes were bigger after the rains. It does not appear as if anything on the list of things to fix was ever done. It is ironic that the funds were made available shortly before the local government elections.”

FF+ councillor Kobus van den Berg added that they were waiting for feedback from the committee on public accounts.

“It appears as if the funds were used for political purposes. We want to know who appointed the service providers, what criteria were used to select contractors, whether tenders were advertised, which contractors were appointed and how much was paid to them.”

He pointed out that if the money was used to settle the debts of government departments owed to the municipality, it would have reflected in their bank account.

“Perhaps it was a transaction similar to the agreement between Sol Plaatje Municipality and Beefmaster to write off R6.5 million in debts in exchange for their assistance to repair the Homevale Wastewater Treatment Plant.”