The report, released at the weekend, recommends that serious cases of corruption and fraud be referred to the police for criminal investigation and that the council discipline the culprits.

It also recommends a comprehensive audit of all travel and subsistence claims made by councillors and officials to recover money whose use was unauthorised.

The report says two councillors solicited a bribe from Rethabiseng Cleaning Services to secure the company a service contract with the council.

"(One of the two councillors) went to the extreme by legalising his allegedly fraudulent conduct in the form of a contract entered into between him and the above-mentioned company," says the report.

Municipal officials failed to alert the council that an agreement between the municipality and the housing department did not include subsidies for the development of 80 stands in the area, the report said.

Their failure to do so resulted in the payment of R70000 as bridging finance to a company known as Ziret Contractors Association, which should be regarded as unauthorised expenditure. The report recommends that the amount be recovered by the officials who authorised it.

During the investigation, it also emerged that municipal officials and a former mayor of Bronkhorstspruit were, or still are, members of a company known as Ticiline Three.

Another company, Ticiline, was awarded the bulk of the housing development contract and the former attorney for the council was a director of both companies.

The report recommends that Kungwini refer the matter to the police to investigate the possibility that the council was unduly influenced to award the contracts to Ticiline, and the possible enrichment of any present or former municipal officials.

It also says that municipal manager Lolo Ditshego exceeded his powers when he bought five vehicles from Honda Auto Nelspruit at a cost of R750000. His authority of acquisition was R70000 and there was no tender process.

"It was further established that senior managers exceeded their authority by entering into unauthorised contracts with Rentokil, which amount to R2,1m. No formal tender process was followed," the report said.

Kungwini mayor Michael Sephiri welcomed the report yesterday, saying disciplinary hearings would commence this week.

"We are going to work hard in rooting out corruption Some of the issues were as a result of a lack of systems and we are also working towards establishing those."