The Middelburg Chamber of Commerce and Industry (MCCI) expresses deep concern over the decision by the Steve Tshwete Local Municipality’s (STLM) Municipal Public Accounts Committee and the STLM Council to write off audited unauthorised and irregular expenditure. This decision undermines the principles of accountability and good governance that our community depends on. 

The article published in the Middelburg Observer on Friday, 17 October 2025, failed to clarify how much of this expenditure will be written off. Between 2016 and 2021, unauthorised expenditure totalled R506.6 million, and irregular expenditure R61 million — a combined R567.6 million. Council must state clearly whether these are the amounts being written off, or if further sums are involved. Transparency is non-negotiable when dealing with taxpayers’ money. 

MCCI believes STLM councillors have failed to uphold their legal and ethical responsibility to act in the best interests of Steve Tshwete’s residents and businesses. The Chamber calls on Council to recover misused funds, hold those responsible accountable, and take decisive action beyond a simple accounting entry. Executive councillors, in particular, must recognise that they are not observers but decision-makers directly responsible for the municipality’s financial integrity. 

It is unsustainable to treat businesses as an unlimited source of revenue. Despite well-known incidents of corruption and theft within the municipality, Council still approved a substantial property-tax increase in 2024 — fully aware that the additional revenue would compensate for past financial losses. Businesses cannot remain viable while absorbing a 35 to 50 per cent rise in monthly property rates, coupled with annual electricity cost increases that exceed inflation. 

An outsider recently asked the Chamber, “Why is the town getting poorer?” The answer lies not in a lack of opportunity, but in decisions like these — where accountability is replaced by write-offs and public trust continues to erode. Middelburg’s business community cannot continue to shoulder the cost of corruption and inefficiency. We urge Council to restore integrity to its financial management and rebuild the trust of those who fund its operations — the ratepayers and businesses of Steve Tshwete. 

Source: Intelidex – Unauthorised Expenditure Report