SDM spent R1.2m in irregular expenditure
According to Kgwedi, several tenders were awarded to persons or relatives of persons employed by the state in contravention of section(s) 45 and 46 of the Municipal Supply Chain Management (SCM) Regulations.
Sekhukhune District Municipality (SDM) has allegedly spent over R1.2 million in irregular expenditure.
The Socialist Agenda of Dispossessed Africans (Sada) in Sekhukhune District Municipality said it learnt with a great shock that the municipality has made payments in contravention of the supply chain management requirements, resulting in irregular expenditure to a tune of R1 278 537 109 during 2021/22 financial period.
“These shocking revelations were highlighted by the Auditor-General in her report presented in a council meeting held on January 30.
“In addition, the report indicated that some of the contracts were not awarded in an economical manner as required by section 217(1) of the Constitution of South Africa, 1996, and section 62(1)(a) of Municipal Finance Management Act 56, 2003, which prescribes a cost-effective process of procurement by an organ of state,” alleged Sada’s councillor in the SDM, Lethabile Kgwedi.
He said the report revealed that contracts and quotations were awarded to bidders that did not score the highest points in the evaluation process, and that in some cases the municipality did not apply the preferential point system for goods and services above R30 000 as required by section 2(1)(a) of the Preferential Procurement Policy Framework Act 5, 2000.
“The report subsequently indicated that some of the accepted quotations came from bidders who did not submit a declaration on whether they are employed by the state, or connected to any person employed by the state, in contravention of the provisions of regulation 13(c) of the Municipal Supply Chain Management Regulations.
“Shockingly, the report revealed that the leadership of the municipality did not have an adequate record keeping system to enable reliable reporting on performance achievement and retrieving of supporting information used to prepare the annual financial statement.”
According to Kgwedi, several tenders were awarded to persons or relatives of persons employed by the state in contravention of section(s) 45 and 46 of the Municipal Supply Chain Management (SCM) Regulations.
“Attorneys were appointed to assist with the recovery of an amount of R22 210 223 previously paid to service providers for services not yet rendered, relating to 2013/14 reporting period.
Kgwedi said the SDM does not want to hold officials accountable for their actions.
“It is for this reasons that Sada urges the executive mayor, Maleke Mokganyetji, to institute a forensic investigation process to determine the root causes of this maladministration and abuse of public authority, and recover all these expenditures incurred by the SDM through the application of processes established by the provisions of section 32 of MFMA.”
Steelburger/Lydenburg News forwarded queries to the SDM spokesman, Khomotso Ndlovu, relating to the allegations. At the time of going to press no reply had been received.
