Newcastle - The IFP-run Newcastle Local Municipality in northern KwaZulu-Natal, which recently claimed to be broke, alleging that its coffers were looted to the bone by the previous ANC administration, blew R2.7 million on a poorly attended gala dinner in early December last year.
In awarding the tender, a certain M Ndima, a manager in the Office of the Mayor Xolani Dube, asked the municipal manager to authorise the deviation and have the tender awarded on an urgent basis.
NEWS: The IFP-run Newcastle local municipality in northern KwaZulu-Natal which recently claimed to be broke, claiming that the previous ANC administration allegedly looted it to the bone, spent R2.7 million to host a poorly attended gala dinner during the 2022 SALGA games. @IOL
— Sihle Mavuso (@ZANewsFlash) May 11, 2023
Ndima said due to time constraints, the municipality was not able to follow competitive bidding processes.
The gala dinner was held in December last year in a glittering wedding venue along the N11 in Newcastle and it was for athletes who attended the KwaZulu-Natal Salga games which were held in the Amajuba district.
The gala was so poorly organised that even the leadership of Salga in KwaZulu-Natal, led by mayor Thami Ntuli of the King Cetshwayo district municipality, were not in attendance.
It was meant to cater for 350 people, but in the end, a team of IOL which briefly popped in and left, could count up to 60 people.
Also, the gala dinner started very late and when it dragged, it is said some guests left.
IOL can now exclusively reveal that the broke municipality was billed in January this year by JMT Enterprises and it was later paid.
According to a breakdown of services, JMT charged the municipality R198 000.00 for VIP catering, R100 000 for fireworks displays and R20 000 for lighting.
Furthermore, the municipality was charged R18 000 to be provided with five flat screens during the gala dinner and for branding alone, it was charged R114 000.
JMT Enterprises was the cheapest company as internal documents showed that the other four companies charged between R3.5m and R5m to host the gala dinner.
Despite the high costs of hosting the gala dinner (which is also called Salga opening ceremony in internal documents), the council sat and gave it the legal nod.
The municipality said it was conducting an investigation regarding this matter and it will give an update later.
“The Office of the Municipal Manager has requested the relevant departments to accelerate the internal investigation relating to this matter with due diligence, and an update will be shared as soon as it becomes available,” it said in a written response to IOL.
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