FTLM audit report implicates a senior council member in corruption
FTLM's communications officer, Thabiso Mokoena, said investigations continue in this matter. "The report tabled by the Auditor-General to council on January 29 has been referred to the Municipal Public Accounts Committee for investigation and detailed findings will be given to the public."
BURGERSFORT – A senior politician in the Fetakgomo Tubatse Local Municipality’s (FTLM) council is alleged to be among those who benefited from tenders and contracts at the municipality.
The FTLM officials implicated are responsible for a staggering R618 million in irregular expenditure.
A reliable source within the municipality said tenders were allegedly awarded to family and friends of senior officials.
“Some tenders were awarded to Fetakgomo employees who are business associates with the directors. The councillor has allegedly benefited from a contract worth more than R350 000.”
The Democratic Alliance (DA) in FTLM said it was aware of the allegations and it would write to the acting municipal manager (MM), David Mashoeu, to request an urgent investigation into the officials responsible for the R618 million in irregular expenditure. In addition to this, R218 million was also incurred in fruitless and wasteful expenditure, while more than R4 million was declared as unauthorised expenditure.
These shocking figures were revealed in the supply-chain management report for the second quarter of the 2019/20 financial year.
According to the DA’s Cllr Lethabile Kgwedi, contracts were awarded to bidders who did not score the highest points in the evaluation process.
“Some tenders were awarded to service providers whose directors were in service of other state institutions. This contravenes Section 112 of the Municipal Finance Management Act (MFMA) and supply-chain management regulations. Also, bid specifications for some of the tenders were drafted in a biased manner and did not allow all potential suppliers to offer services.
“Their performance was not monitored on a monthly basis, and some contracts were awarded to providers whose tax matters had not been declared by SARS.”
Section 32 of MFMA clearly indicates that any kind of unauthorised, irregular or fruitless and wasteful expenditure that is irrecoverable, is no excuse for criminal or disciplinary proceedings against a person responsible for such expenditure.
The DA alleged that no effective steps were taken by the accounting officer to probe these expenditures, as required by Section 62 of the MFMA, or to determine if any person was liable for the expenditure as required by Section 32 of the Act.
“It is apparent that there is a need for effective consequence management in this municipality in order to put an end to any wasteful expenditure, corruption, maladministration and tender irregularities.”
Kgwedi added, “It is clear that this municipality does not want to hold officials accountable, but instead allows these politically connected bureaucrats to turn this municipality into a hub of corruption.”
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The party urged the accounting officer to take action against the implicated officials who failed to follow due process to report, to investigate all such matters and to recover all irregular expenditure in this matter. The party is also considering laying criminal charges against all those implicated in this matter.
FTLM’s communications officer, Thabiso Mokoena, said investigations continue in this matter. “The report tabled by the Auditor-General to council on January 29 has been referred to the Municipal Public Accounts Committee for investigation and detailed findings will be given to the public.”
Meanwhile, local business owners have confirmed to Steelburger/Lydenburg News that they will meet the top brass of the troubled municipality. “We are sidelined when it comes to FTLM contracts. It is sad that those who are managing the institution are the ones milking it in contracts. Heads must roll at FTLM.”
The Socialist Agenda for Dispossessed Africans’ Aubrey Ngwatle said the councillor must clear his/her name with the alleged company’s directors. “Given the senior position the councillor occupies they could have known and valued the concept of ethics. He/she must be removed from council.”
