NELSPRUIT – Despite the Auditor-General’s (AG) finding that Mbombela’s municipal manager (MM) did nothing prevent irregular spending, the municipal public accounts committee (MPAC) could only recommend that he include the administrative performance in his forewords in future.
MPAC tabled its oversight report on the Mbombela’s 2012/13 finances to council on Friday. Ms TM Charles, chairman of the committee, read its findings and recommendations on the audited financial reports and the AG discoveries during the special council meeting, which was called especially for the occasion (the audited financials of national and provincial departments are audited by the AG the same year, while those of municipalities deal with the reports a year later).
The report was supposed to be tabled two weeks ago, but special permission was obtained from the speaker of provincial legislature, Mr William Lubisi, after it was delayed when the executive failed to stick to their deadlines of submitting answers to questions posed by the committee.
The report commended the municipality for having “managed to obtain an unqualified audit opinion from the AG and the committee praises all the involved stakeholders for this achievement”. The audited report and AG have found that 45 per cent of the targets were not achieved in 2012/13.
It found the MM did not take effective steps to prevent irregular spending. A total of R127 million of conditional grants for capital projects went unspent and only R2 million was approved by national treasury to be rolled over to the next financial year. The report also noted that conditional grants were utilised for purposes other than those stipulated in the grants framework.
The AG found that theft and illegal connection of amenities caused Mbombela to lose R39,7 million for electricity and R2,7 million for water. It also had receivables such as property rates and taxes as well as outstanding water bills totaling R259,6 million and it was noted that the recoverability of these amounts were “doubtful”.
According to the AG, the audit committee did not review the performance management or make recommendations to council, as required.
By contrast, MPAC’s recommendations were few. It said that the outstanding revenue owed to the municipality by its own councillors was not included and a plan to recoup the money should be included in the 2013/14 annual report.
It noted that since the new households provided with water and Mbombela’s plan to address water and refuse removal backlogs were not included, the information should be included this year.
It also recommended that the MM and executive mayor, Cllr Cathy Dlamini, in future include, in their forewords to the financial reports, the administrative performance of the municipality and it’s alignment with the province’s development strategy, respectively.
The chief whip of the DA in council, Mr Jo Koster, noted with dismay that the report was terribly watered down. “The only recommendations the committee makes is for the mayor to adjust her foreword. What does that even mean?”
MPAC did, however, note that it was concerned over bottlenecks in supply-chain management, the non-sitting of bid committees, the underspending of conditional grants and critical positions going unfilled.
“It noted this matter with discontent, as by implication (the underspending of conditional grants) reflects on the level of the municipality to provide basis infrastructure services.”
The chief financial officer has been in an acting position for 14 months, while the contract for the acting municipal manager, Mr Sello Dtishego comes to an end at the end of May after the MM Mr Xolani Mzobe was dismissed by council earlier this year.
Council is to submit its report on the committee’s findings to provincial legislature within 14 days.
