FREE STATE MEC for Cooperative Governance, Traditional Affairs and Human Settlement Moses Makume said all municipalities are a crime scene.
The municipalities are paying millions of rands in invoices without work being done by bypassing supply chain processes.
The so-called overtime is higher than their monthly salaries.
The Hawks and Special Investigating Unit have been called in to probe fraud and corruption, among other criminal elements, which occur in municipalities.
The municipalities, including Matjhabeng, Maluti-A-Phofung, Dihlabeng and Nketwana, are being probed for severe allegations of corruption in contravention of the Municipal Finance Management Act where millions of rands were lost.
Daily Sun has learnt that the dysfunctional Maluti-a-Phofung has 13 cases under the Hawks and SIU investigations.
None of the municipalities have received clean edits for years.
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MEC for Cooperative Governance and Traditional Affairs and Human Settlement Moses Makume said investigating authorities have the overwhelming job of arresting the perpetrators.
Makume agreed that many projects collapsed, and roads were full of giant potholes due to corruption.
"The service providers are submitting invoices without doing any job and those invoices are being paid. We have such a huge number of incomplete projects. But the new provincial administration has a positive message that we're not married to corrupt activities," he said.
Makume said his department put four municipalities under section 106 to allow the Hawks and SIU investigations to unfold smoothly.
Meanwhile, former Nketwana Municipality Mayor Mandla Mamba has recently been sentenced to eight years imprisonment for fraud and money laundering that caused the municipality to lose more than R364 000.