- The Amathole District Municipality has come into the spotlight for its questionable financial decisions
- While small contractors go unpaid the mayor of the region has bought a R1.1 million luxury car
- With R400 million worth of debt, the municipality is lending funds just to cover salaries
The Amathole District Municipality may be in massive amounts of debt, but this seems to have done nothing to encourage responsible spending.
Small contractors remain unpaid since June with the mayor sporting a R1.1 million Land Rover. A massive function planned for next year has already been mostly paid for, reports DispatchLIVE.
The municipality is borrowing funds to pay staff, with a huge debt burden of over R400 million.
Businesses who had done work for the municipality are now owed R48.9 million for jobs carried out over the course of the year.
Despite the businesses struggling to carry the cost of work done for the state, the municipality opted to make R2 million worth of dubious payments.
R1.153 million was paid towards the mayor Nomfusi Nxawe's new whip, while R745 000 was paid towards a bash for 400 delegates set to take place in March.
Sources have denounced the fact that the municipality opted to fund a lavish event complete with a R170 000 drinks budget and R12 500 worth of entertainment.
Briefly.co.za gathered that a R128 million loan was taken out at Standard Bank in order to pay salaries, with council adamant that the loan hadn't been cleared.
Complaints of corruption are widespread, with spokesperson Makaya Komisa confirming investigations are currently underway:
“The MEC is aware of the allegations and we are currently developing the terms of reference for the investigations."
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