‘Money didn’t go missing’ – Tshwane mayor as motion of no confidence looms

City of Tshwane mayor Randall Williams has insisted that no money went missing following the damning findings by auditor-general (AG) Tsakani Maluleke on the metro’s finances.

A leaked 28-page report found irregular expenditure of R10 billion, and fruitless and wasteful expenditure being understated by over R1 billion for the 2021/2022 financial year.

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The audit also details how the metropolitan municipality failed to disclose reasons for deviating from supply chain management regulations, which resulted in financial statements being overstated by R488 million.

The Democratic Alliance (DA) led government has placed the blame on former chief financial officer (CFO) Umar Banda.

‘Money didn’t go missing’

Speaking to Radio 702 on Wednesday, Williams welcomed the auditor-general’s report, but pointed out that the irregular expenditure amount piled up over a period of time.

“The R10 billion [irregular expense] is an accumulated amount that has been accumulating for the last 12 years since 2011. So it’s not a one year amount,” he said.

“The irregular expense for the financial year under discussion is actually R1.2 billion. If you look at the fruitless and wasteful expenditure, this is where the misconduct of the CFO comes in. The actual amount for fruitless and wasteful expenditure is R8 million on a budget of R44 billion.”

Williams said Banda’s contract has since been terminated for financial misconduct.

READ MORE: AG audit findings: DA ‘has proven incompetent to run Tshwane’

“He didn’t disclose any of these transactions in the financial statements of the City. No one picked it up because he didn’t include it. You actually had to sit with the bank statements, the invoices [and] requisition orders that’s how the AG picked it up,” he continued.

The Tshwane mayor further dismissed the suggestion that some monies could not be accounted for.

“Money didn’t go missing. Money was paid somewhere where it wasn’t supposed to be paid. It was paid to Sars [South African Revenue Service]. So that’s not money going missing, but we understand now that the processes outlined for auditing are not sufficient.

“We need to go beyond those processes and add additional processes. Instead of having a once-a-year audit, we have quarterly audits with the AG. We putting new processes in place that will prevent this from occurring again.”

Motion of no confidence

Meanwhile, the ANC caucus in Tshwane is looking to institute yet another motion of no confidence against Williams over the controversial R26 billion power station revamp tender.

Asked if he was confident that he would survive the motion, Williams said: “I serve at the behest of both my party and also the coalition partners [so] it’s not my decision, but it is not the first time the ANC bring a motion of no confidence against me. They have done so several times last year so it’s nothing new”.

The City of Tshwane’s next council meeting will take place on 26 January.

ANC regional secretary George Matjila indicated on Tuesday that the caucus would “prepare for the battle ahead” of the council sitting.

READ MORE: Tshwane mayor Randall Williams’ attempted power grab out of order, no matter how you look at it

“We will engage think-alike parties in council on a possible motion of no confidence against [the mayor] and his executive. They have delivered their final nail [in] the coffin, and we will not relent on our responsibility as an opposition and majority party in the Tshwane council,” Matjila said during a media briefing.

Last August, the ANC attempted to have Williams removed from office, but failed.

Williams came under fire after an audio recording, where the mayor could be heard allegedly instructing officials to support his executive decision for the R26 billion project, was leaked.

He was subsequently subjected to an independent investigation.