MM speaks on asset auction
ENOCH Mgijima Local Municipality held a special council meeting on Friday to report back on the court judgment that led to the auction of its assets to pay back a debt owed to a contractor.
EMLM municipal manager (MM) Chris Magwangqana said the matter was under investigation by accounting firm Deloitte South Africa, but their report did not indicate how much the project had cost.
“If the Grahamstown High Court rules in Milowo Trading Enterprise’s favour, we will have to look at how much the project cost and if the court rules against them, we would file for our assets to be returned in their original state.”
United Front councillor Aaron Mhlontlo refuted the MM’s report, indicating the meeting was not to update council because they had not been informed but only read about developments in the newspaper.
“This is the worst mess we have ever been confronted with which was caused by poor leadership, elements of corruption, greediness and political campaigns. Why did the MM not inform council about the letter of demand served in January? Who signed the settlement agreement with Milowo that the municipality would pay the company R21-million?
“You speak of a forensic report to investigate Nkwanca Municipality which also speaks to the construction of the hall in Sterkstroom – where is that report? We need its findings. What you are reporting to us is scanty and there is no information about the awarding of the tender.”
UDM councillor Mthuthuzeli Hokolo said the MM decided to inform certain councillors about the issues facing EMLM, forgetting that council was made up of various political parties.
DA councillor Chris de Wet said it was time the provincial government placed the municipality under administration as the current leadership had failed.
“The MM must resign. He did nothing to stop the auction from taking place because he knew a settlement agreement had been signed to pay what is owed to Milowo.”
ANC councillor Noluthando Nqabisa said the EMLM council did not take the decision to sign the settlement agreement with Milowo and that it was agreed upon by the former Nkwanca Municipality.
“Another matter of concern is that the attorney hired to defend the municipality was part of the drafting of the settlement agreement and that was not disclosed to the MM. The attorneys acted in conflict to what was of interest to us as a client. The department of cooperative governance and traditional affairs MEC said an investigation had been commissioned and its findings indicated Milowo was not owed money.”
EMLM mayor Sisisi Tolashe said the municipal leadership was worried and frustrated about the issue.
“The auction proved to be a sad day for the communities of Enoch Mgijima and we need to support the MM in the fight to save our assets.”
A group of DA members picketed outside the town hall to call for change with MP and Enoch Mgijima constituency leader Terri Stander saying it was aimed at putting pressure on government to fast track the change in the municipality.
“We are going to have a community march next week for people to stand together and fight against what is happening in EMLM.”