A week prior to the metro’s finance MMC, Clr Moses Makwakwa, presenting the 2014/2015 budget, matters around the management of funds by the metro was a contentious subject at the council meeting on May 22.
The first matter which had political parties up in arms was that R14.1 million of grants the metro acquired from both National and Provincial Treasury had to be paid back to the National Revenue fund due the money not being spent. The total amount of unspent grants was just over R2-billion at the end of June last year. According to a report presented to council, R215.7 million is subjected to the surrendering process and had to be motivated for retention. Approvals were obtained to retain R201.6 million and R14.1 million needs to be paid back.
This did not go down well with all opposition parties, each citing it meant the relevant departments tasked with spending the grants for the benefit of Ekurhuleni citizens did not do as they were mandated.
Clr Estelle Visser of the DA said the inability of the metro to spend the grants and therefore have to return a portion showed incompetence to the detriment of the ordinary citizen.
A bulk of the grants had been allocated to the human settlement department where the issue of increasing informal settlements has plagued the metro. With close to R140 billion having gone unspent, the opposition parties questioned how the metro could justify this.
“There needs to be a comprehensive report by the heads of department as why these grants have gone unspent. Also the report should include when the grants were allocated,” said Clr Izak Berg, national chairman of the Independent Ratepayers Association of SA (IRASA).
Clr Neil Diamond of the ANC, who is also chairman of the finance portfolio, reiterated the concerns of the other councillors. He added that apart from a thorough investigation of why the grants went unspent, the committee had to ensure that this was not repeated in the future.
In the light of transparency, the report presented by the finance portfolio regarding the awarding or tenders by the metro, also raised eyebrows. According to the ANC’s Clr Sonja Kraal, deviations have increased which provides avenues for mismanagement. Deviations take place in cases of emergencies, single providers and in exceptional cases where it is impractical or impossible to follow the official procurement processes.
Extension of a contract may not exceed the duration of the original contract, or an amount exceeding 20 per cent of the original bid value. Although provision is made for deviations, it was noted that they should not become the norm.
According to comparative figures provided in the report, deviations have increased by about 26 per cent when comparing July to February 2013 and July to February 2014.
What was also notable in the report is that in the July to February 2014 period a little under 70 per cent of the bids were awarded to companies based in the metro, 20.75 per cent went to women and only 2.44 per cent of the bids were awarded to persons with disabilities.
“We are ploughing back into the community. However, not enough is done to plough back into the women, youth and people with disabilities within our own metro. We need to review the procurement process to ensure that those who were marginalised be included,” commented Diamond.
The report on the third quarter’s financial performance and results as required by Section 52(d) of the Municipal Finance Management Act, was also presented.
What was most alarming was that the total amount spent on capital at the end of March this year (R1.338 billion) was only 44.8 per cent of the total capital budget of R2.987 billion.
“We were told that we have hired competent officials – what are they doing? With just a few weeks left of this financial year, you can’t convince me that the amounts requested and budgeted will be spent when you’re sitting with only 44.8 per cent of expenditure spent. I don’t usually agree with the DA but bad planning is bad planning,” said the ANC’s Clr Vivian Chauke.
She said accountability of officials within the metro was key – people who have been mandated to perform certain tasks must follow through with them.
“Looking at areas that are deemed as non-paying, it should worry us why these residents are not paying for services. Are they being billed correctly?
“It has been years that people are still living in shacks and backyard rooms – databases and lists have been compiled but where are the houses? Where are the services for the people? They have given us money to spend, houses need to be built. We don’t want protests to come to this city,” she added.
In the light of this the DA agreed with Chauke’s stance with regards to the inadequacy of the metro’s financial planning and management. The party also stated that they did not accept the budget and IDP without their suggested changes made accordingly.
The opposition party also expressed concern after Clr Bill Rundle had submitted questions, directed at road and transport MMC, Clr Thumbu Mahlagu, for oral reply.
According to the speaker of council, Clr Patricia Kumalo, the matter being questioned was before the courts and therefore could not be discussed at the council meeting.
“One of the main functions of council and its oversight bodies is to question and interrogate the actions and results of the metro’s officials in the event of wrongdoing surfacing. The DA’s main concern is that the ANC-led metro is attempting to hide something in refusing to answer Rundle’s questions, which the DA maintains are not related to the court case at all but rather to service delivery,” a statement issued by the DA stated.
The budget speeach is being delivered today.
