Msunduzi Municipality has set plans in motion to recoup over R1,6 million that was paid to an unqualified and absent manager, the provincial parliament’s portfolio committee heard on Wednesday.

The municipality was presenting on what action it has taken on various issues that were flagged by the auditor-general (AG).

Employed from 2016 to 2019

In December 2016, the city appointed a manager in the speaker’s office, who was later found to be unqualified for the position.

According to the presentation, AG Tsakani Maluleke has recommended that management should ensure that all appointments are valid and the related remuneration of employees are only made for services actually rendered.

Maluleke further recommended that management should ensure adequate implementation of employee verification procedures by the human resources directorate of the municipality are implemented.

Irregular appointment of manager

It was noted, based on an inspection of the forensic investigation report issued by Msunduzi’s internal audit in November 2020, that there was an irregular appointment of a manager in the office of the speaker and chief whip.

The appointment commenced on December 1, 2016, and was terminated on July 31, 2019 — resulting in the municipality losing R1 649 973,51 in salaries to the manager.

According to the presentation, this appointment was approved by the previous municipal manager despite the applicant not qualifying for the position and misrepresenting his qualifications.

Furthermore, based on an inspection of the same forensic investigation report, the employee did not report for duty despite being paid a monthly salary for the total duration of his employment at the municipality.

Despite the recommendation of the forensic investigation report requesting the accounting officer to stop the monthly salary that was being paid to the employee with immediate effect, the salary payments continued.

The root cause was found to be a lack of adequate review and monitoring of compliance with applicable laws and regulations in ensuring that all appointments are valid and the related remuneration of employees are only made for services actually rendered, among others.

The AG recommended that management should ensure adequate review and monitoring of compliance with applicable laws and regulations are in place to ensure that all appointments are valid and the related remuneration of employees only made for services actually rendered.

Msunduzi management agreed with the audit findings.

According to the presentation, the manager was headhunted in accordance with the political support policy and appointed to the position of manager — office of the speaker.

Msunduzi municipal manager Lulamile Mapholoba said on Thursday that the case was an outstanding matter among many other matters that were flagged by the AG.

“We were called to give a report on what has been done on issues that were flagged by the AG. The municipality investigated and yesterday [Wednesday] we presented an action plan to Parliament’s Cogta. We have instructed our legal services to recoup the money. The internal audit and legal services will give me a progress report.”

He said the matter will not stop at recouping the money, but will deal with whoever was involved in the appointment of the manager.

“Internally, we have to investigate what role was played by whom in this saga. Why do you employ someone who is not qualified? We don’t want a situation where the City employs unqualified people. Whoever was involved in this will be held accountable,” said Mapholoba.