By: Thami Nkuyane

KLERKSDORP - The beleaguered Klerksdorp-based Matlosana Local Municipality in the North West came under heavy scrutiny on Wednesday, June 4, 2025, at the Portfolio Com-mittee on Finance and Public Accounts (SCOPA) meeting over its misuse of public funds.
Matlosana municipality, which continues to face allegations of rampant fraud, corruption, and maladministration, is accused of squandering R1.1 billion that remains unaccounted for. During its appearance before the North West Legislature Committee, it was revealed that this municipality continues to misuse public funds without any consequences. 
SCOPA Chairperson Smuts Matshe condemned the Matlosana municipal council for incur-ring unauthorised expenditure of R1.1 billion during the 2023/24 financial year.
"The censure follows SCOPA's public hearings on audit outcomes in line with the Munici-pal Finance Management Act (MFMA). 
“ Matlosana regressed from an unqualified to a qualified audit opinion due to poor internal controls, over-reliance on consultants, and irregularities in contract management, including the provision of paraffin to communities.
"The municipality is currently under financial recovery intervention but has recorded irreg-ular expenditure of R249 million, as well as fruitless and wasteful expenditure of R105 mil-lion, and R1.1 billion in unauthorised expenditure. The Committee also noted the high level of litigation initiated against the municipality," Matshe added.
He also criticised the municipality's sitting Municipal (MM) Manager and Chief Financial Officer (CFO) , who are alleged to have been arrested and are facing criminal charges relat-ed to corruption claims. 
Matshe further criticised the Matlosana council for failing to exercise oversight and enforce accountability, especially regarding post-audit action plans and Section 71 financial reports. He highlighted Matlosana's failure to investigate duplicate payments.
However, Matlosana Mayor Fikile Mahlope responded to the criticism and sought to give clarity. Mahlope said around R800 million of the unauthorised spending stems from non-cash debt impairments due to poor revenue collection. He said the municipality has since introduced an unauthorised, irregular, fruitless, and wasteful expenditure (UIF&W) reduc-tion strategy to address the issue.
Following the appearance before the committee, SCOPA has directed that written reports be submitted within seven days to cover, among other things, progress in implementing post-audit action plans, funding strategies for unfunded budgets, investigations into material ir-regularities and UIF&W, implementation of consequence management, functionality and effectiveness of oversight and audit committees. 
This is not the first time the troubled municipality has come under scrutiny for fraud, cor-ruption, and maladministration. 
In April 2025, the mayor of the municipality was accused of unauthorised expenditure.
He is said to have spent a large sum of money from municipal coffers without council ap-proval, ignoring supply chain processes and intervening in supply chain processes. 
Mahlope was accused of purchasing furniture valued at R280,000 but priced at R15,000 and incurring R1.2 million in unauthorised debt. 
The municipality has also failed to maintain road and network infrastructure, which has been deteriorating for years. 
Roads and other essential infrastructure have completely eroded across towns in Matlosana, including Khuma near Stilfontein, Kanana near Orkney, Tigane near Hartbeesfontein, and Jouberton near Klerksdorp. 
Residents have called on the municipality to fix the roads, but their pleas seem to have fall-en on deaf ears.
Instead, on Wednesday, June 4, the municipality released a statement saying that due to lim-ited resources and equipment, it is not possible to address all roads at this time.
In March 2023, then Mayor James Tsolela revealed that the municipality owed the power utility Eskom R2.5 billion and the Midvaal Water board R2.5 billion, totalling debt to R5 billion, among other things. 
The municipality has since been put under a finance recovery plan under Section 139(5)(a) and (c) of the Constitution, together with Section 139 of the Municipal Financial Manage-ment Act. 
The Provincial Treasury Department said the section applies when a municipality is in a fi-nancial crisis and consistently and persistently breaches its obligations, rendering it unable to carry out its core functions, provide basic services, and meet its financial responsibilities.