A forensic audit has revealed millions of rands in potential corruption and fraud at the Matlosana local municipality in Klerksdorp, North West, South Africa, prompting investigations into several officials, including the CFO. The audit uncovered numerous irregularities, including double and triple payments to suppliers, payments without proper documentation, and the awarding of contracts to companies owing the municipality money.
A forensic audit has uncovered millions of rands in potential corruption and fraud at the Matlosana local municipality in Klerksdorp, North West , South Africa . Several officials, including the chief financial officer ( CFO ), Mercy Phetla, are under investigation for allegedly allowing irregular and duplicate payments to service providers without proper authorization.
The audit, commissioned by the municipality's executive mayor, Fikile Mahlophe, and municipal manager, Lesego Seametso, focused on the R292 million paid to the municipality's top 30 suppliers. The independent forensic investigation, conducted by Maine Management and Chartered Accountants Inc, revealed several concerning irregularities. In numerous instances, suppliers received double or even triple payments for the same services. One construction firm, for example, was paid R672 031.25 three times on a single day for three separate invoices. Moreover, some payments were made without invoices or goods received documents, raising suspicions about whether the work or delivery was actually performed. A particularly egregious case involved a contractor who supplied illuminating paraffin to destitute rural communities. This firm was paid R6.2 million twice using the same order number. The audit also uncovered instances of construction companies owing the municipality money for water and electricity bills being awarded contracts and subsequently paid. This suggests a blatant disregard for proper supply chain procedures. The Democratic Alliance (DA) councillor, Johannes le Grange, expressed outrage at the findings, stating that the party would bring the matter to the attention of the Minister of Cooperative Governance and Traditional Affairs, Velenkosini Hlabisa. Le Grange accused the ANC in the council of trying to suppress the report as a cover-up and demanded accountability from those responsible.
Matlosana Municipality Corruption Fraud Forensic Audit South Africa North West CFO Municipal Officials Irregular Payments Supply Chain Violations
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