The response below was provided by the municipality:
1. The Madibeng Local Municipality has appointed an external investigator to investigate the issues raised on the internal audit report. The investigation will also cover the payment made to Maximum Profit Recovery (Pty) Ltd. The investigation is expected to be finalised by the end of September 2015.
2. Maximum Profit Recovery (PTY) Ltd was appointed to render Value Added Tax (VAT) recovery service at a commission rate of 15% of the amount recovered from the South African Revenue Services (SARS). The outcome of the investigation will determine whether or not it was justifiable for the municipality to pay Maximum Profit Recovery (Pty) Ltd.