KSD buying vehicles while company paid

King Sabata Dalindyebo municipality continues to spend millions buying new vehicles while paying more than R10-million to a fleet management company every quarter.

In the previous quarter alone, KSD paid about R16-million to fleet management company Makhubu Consortium, hired to manage the municipality’s fleet in 2012.

Despite the millions paid monthly to Makhubu to provide vehicles for the municipality, last year KSD paid more millions hiring and buying vehicles for staff.

In the third quarter of the 2013-14 financial year KSD spent more than R3-million on vehicle hire.

This year the municipality bought double cabs, single cab bakkies and trucks. Some are already being used by staff while others are being kept at the municipality’s car storage facility on Callaway Street.

KSD has made the following payments to Makhubu this year:

  • R3.1-million in July;
  • R335112 on August 3;
  • R2.6-million on August 7;
  • R3.1-million on August 17;
  • R3.4 million on August 31; and
  • R4.6-million and R504000 in September.

The information is contained in a municipal finance report to be tabled in council soon.

KSD spokesman Sonwabo Mampoza said the Makhubu contract expired in May and the municipality had not wanted to abruptly end the contract.

“At the moment we do not have enough fleet. We are building our internal capacity to ensure when Makhubu leaves, the services they were rendering run smoothly.”

Council chief whip Zanemvula Gusana said: “The ANC in council said the executive mayor must instruct the municipal manager to look into all contracts and get rid of those that are not giving us value for money. We have not received feedback from the MM yet.”

Councillors have called for an investigation into the contract.

UDM councillor Mabandla Gogo said: “The whole contract needs to be investigated and a review of this contract before the investigation is concluded.”

DA councillor Raymond Knock alleged that some people were getting kickbacks from the contract.

“They were supposed to supply those vehicles needed by the municipality and maintain them. Why that was done in the first place we do not know because the municipality used to buy and maintain its own vehicles.”

COPE councillor Zanele Pantshwa-Maqabuka said KSD should be placed under administration.

“There is a need for the municipality to be placed under administration. There is a lot that needs to be looked into, starting from the personnel,” she said. — abongilem@dispatch.co.za

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