Chair and Deputy Minister, thank you very much. Minister, it was reported on 12 June 2011 that the Matjhabeng Municipality went on a wild spending spree. It was also reported that the municipality spent R1,6 billion of its budget of R1,7 billion on expenditure unaccounted for. Deputy Minister, this is in the latest Auditor-General's report.
This report further says that R200 000 was paid into the account of former Mayor Mathabo's husband by a company that was irregularly awarded a tender of R15 million. It also says that the former municipal manager, Dr Benny Malakoane - I know him; he's from Kroonstad - signed questionable tenders worth R80 million. He signed ten of them in one day, before he resigned and joined the company that benefited from the tenders. He signed them. Minister, I am very sure that you will agree with me that this is a very serious problem.