R194 million in KDM ‘irregular’ spending

About R194 million had been found as unauthorized, irregular, fruitless and wasteful expenditure during KwaDukuza municipality’s (KDM) annual oversight report for 2015/2016.

KDM’s irregular spending has jumped from R62 million in 2013 to R86 million last year.

Although the term ‘irregular spending’ may not necessarily point to fraud, the ever-increasing amounts show that the processes in recording payments as well as tenders are not being followed correctly.

The 2016 quarterly report raised the alarm alarm when it showed that “irregular” payments of R15 million had been made to G4S security and Dolphin Coast Waste Management, among others.

Some of the reasons listed by auditors for irregular spending were that there was no competitive bidding in the tender processes and renewal of expired contracts by municipal service providers.

DA Caucus leader Madhun Sing said the continued trend of increasing amounts showed that not enough was being done by the municipality to prevent the reckless spending of public funds.

He also accused KDM of covering up R33 million last year by not providing a valid reason for why the amount was listed as irregular.

“We need to have systems in place to stop irregular and wasteful expenditure. Why was fruitless and wasteful expenditure in prior years was not investigated to determine if the person was liable for the expenditure amounting to R3.7 million? Someone must be accountable and liable.

“The rot must stop. Grass cutting amounted to R 21.1 million. For more than five years council failed to award new tenders with all sorts of flimsy excuses not ruling out political interference. Ten rogue officials and one councillor have done business with the state institution without disclosing interest or seeking prior approval of consent from the municipality.”

Comments on the annual oversight report from various departments within KDM state that the reported expenditure does not constitute fraud or corruption.

“The tenders for security services and refuse removal were not finalised due to technicalities, hence became irregular.

“The tenders for security services and refuse removal were not finalised due to technicalities and hence become irregular as a result of continuance with existing suppliers and exceeding three years. The appointment of consultants on a rotational basis was to improve expenditure on grant funded projects and this was deemed irregular.”

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