DA urges probe into EMLM’s R1.2m mayoral car purchase

DA Raises Concerns Over EMLM’s R1.2-Million Mayoral Vehicle Purchase

The Democratic Alliance (DA) has called for urgent intervention following the Enoch Mgijima Local Municipality’s (EMLM) decision to purchase a vehicle for the mayor at a cost of R1.2-million — significantly above National Treasury’s prescribed cost limit for municipal office bearers.

The DA says consequence management and accountability processes must now follow, particularly given the municipality’s severe financial challenges and its ongoing participation in the National Government Financial Recovery Plan.

Oversight Committee Raises Questions Over Cost Limit Breach

During a recent sitting in Parliament, the National Assembly’s oversight committee questioned EMLM Speaker Noluthando Nqabisa about the decision to purchase a BMW X3 for mayor Madoda Papiyana. The committee noted that the vehicle cost exceeded the gazetted National Treasury limit of R750,000 for mayoral office purchases.

Committee members stressed that municipalities are expected to comply strictly with Treasury guidelines unless formally amended. They asked the municipality to provide clarity on how the procurement decision was justified and approved.

Committee Calls for MEC to Investigate Procurement Process

Following the discussion, the oversight committee instructed the Eastern Cape MEC for Cooperative Governance and Traditional Affairs (CoGTA), Zolile Williams, to compile a detailed report on the procurement process within 14 days. The committee indicated that the review should determine whether proper supply chain procedures were followed and whether officials acted within the law.

EMLM Directed to Address Potential Procurement Irregularities

The municipality was also formally directed to investigate allegations of procurement or expenditure irregularities linked to the purchase. Officials were reminded that municipal leadership structures, including the Municipal Public Accounts Committee (MPAC), are obligated to assess and report on any spending that may fall outside legal requirements.

The committee further emphasised the importance of recovering public funds if any irregular expenditure is confirmed through these investigations.

DA Says Financial Distress Makes Vehicle Purchase Concerning

Chantel King, the DA’s Enoch Mgijima Constituency Leader and Member of the Provincial Legislature (MPL), said the DA is concerned about the decision given EMLM’s current financial state.

King noted that the municipality is under the National Government Financial Recovery Plan due to sustained financial difficulties, including an inability to meet major obligations. She referred to longstanding challenges with Eskom debt — reported by the DA as R1.6-billion — which has contributed to recurring power interruptions and ongoing strain on municipal services.

She also referenced past audit outcomes and the municipality’s history of adopting unfunded budgets, arguing that such circumstances require stringent financial discipline.

DA Highlights Treasury’s Cost Limit

According to the DA, National Treasury’s current guidelines set an upper limit of R700,000 for mayoral vehicles. King argued that the EMLM’s R1.2-million purchase exceeded this threshold by a substantial margin and said this warranted closer scrutiny by provincial and national authorities.

Calls for MFMA Section 32 Action

King said she has written to MEC Williams and Eastern Cape MEC for Finance, Mlungisi Mvoko, asking them to invoke Section 32 of the Municipal Finance Management Act (MFMA). Section 32 outlines the steps to be taken when municipal expenditure is found to be unauthorised, irregular, or fruitless and wasteful.

The DA also requested that the Auditor-General assess whether the vehicle purchase could constitute a material irregularity. If so, the DA believes the Auditor-General should consider issuing a formal certificate of debt, which is a binding corrective action.

MEC Seeks Clarity From Municipality

According to King, MEC Williams wrote to EMLM on 26 June 2025 requesting reasons for what he referred to as potentially unauthorised expenditure. She said the municipality responded on 2 July 2025, explaining that the 2019 Treasury vehicle limit had not been adjusted for inflation and market prices. King argued that this reasoning should be tested through the proper oversight channels.

She stressed that only Treasury may amend such limits and that municipalities cannot unilaterally apply adjustments without formal authorisation.

Municipality Lists Vehicle as Unauthorised Expenditure for Review

The DA says the municipality has listed the vehicle purchase as unauthorised expenditure in its Annual Financial Statements and referred the matter to MPAC for further investigation. While this reporting step is required by law, King argued that proper accountability processes must still follow pending the outcome of these investigations.

DA Says Residents Expect Responsible Financial Management

King said the DA believes communities living under difficult service delivery conditions expect responsible leadership and transparent expenditure decisions. She cited ongoing infrastructure challenges and power supply disruptions as reasons why residents may question high-value purchases.

The DA maintains that the review process must establish whether the purchase complied with procurement laws and Treasury regulations, and that appropriate action should be taken depending on the findings.

The Enoch Mgijima Local Municipality has not yet released a detailed public statement responding to the DA’s latest concerns.