Laptops, cellphones, and vehicles seized in South African municipality that owes creditors R156 million

The financial crisis affecting the Mohokare Local Municipality is deepening, with reports that municipal assets are now being attached to pay off its debts.

Located within the Xhariep District Municipality in the Free State, the municipality has come under fire in recent years over allegations of fraud, corruption, and mismanagement.

The MEC for COGTA in the Free State, Saki Mokoena, confirmed in August last year that the municipality owed R155.6 million to third parties as of 31 March 2025.

According to Mokoena, cash flow constraints had prevented Mohokare from honouring several payments, including over R24 million, which was owed to SARS.

“As at 31 July 2025, the municipality has started to implement revenue enhancement measures which will result in monthly contributions paid to the fund,” Mokoena said.

“Payment arrangements are entered into with creditors, and the municipality has started making payments since the receipt of the Equitable Share in July 2025.”

Over a year after Mokoena’s comments, the municipality’s financial distress has escalated despite his promises that it had begun repaying its creditors.

Recent reports indicate that the Sheriff of the Court in Mohokare has begun attaching municipal assets and equipment belonging to the municipality’s administration.

This includes laptops, cellphones, and a number of municipal vehicles, including a Toyota Fortuner belonging to Mohokare Executive Mayor Teboho Daniel Mochechepa.

The assets were attached on 21 and 22 September 2026, with the details of the court order and the judgment creditor yet to be made public.

Mohokare Councillor Ian Riddle said the loss of essential municipal equipment, such as printers and computers, will further hinder its ability to perform basic functions and deliver services.

“Mohokare’s own administration has acknowledged problems with late salary payments, unpaid employee benefits, and poor revenue collection,” Riddle said.

“Provincial intervention has already been necessary to strengthen the municipality’s administration.”

Electricity provider Centlec attached Mohokare’s bank account over an outstanding debt of more than R93 million, preventing the municipality from paying its creditors or employees.

Despite an agreement between the two parties to settle the debt, the Council reportedly failed to adhere to it, leading to the attachment of its entire bank account.

As a result, municipal workers have gone on multiple strikes over unpaid salaries, leading to a degradation of basic municipal services such as water, sanitation, and electricity.

Last month, criminal charges were laid against Mohokare’s municipal manager, Mopedi Mohale, who was appointed in 2023.

Mohale was issued with a Notice of Intention to Issue a Certificate of Debt by the Auditor-General in March, over a bulk water project that was never completed.