The 2014/15 oversight report was tabled before local council last Thursday.
In his presentation, Municipal Public Accounts Committee (MPAC) Chairman, Sechaba Ndlovu began with an explanation of the functions of the committee.
These are:
To review and analyse the Annual Report;
To invite, receive and consider inputs from and Portfolio Committees, on the above mentioned report;
To consider written comments received on the Annual Report, from the public consultation process;
To conduct public hearing(s) to allow the local community, or any organs of state to make representations on the report;
To receive and consider Council’s Audit Committee views and comments on the annual financial statements, and the performance report; and
To prepare the draft Oversight Report, taking into consideration the views and inputs of the public, representative(s) of the Auditor-General, organs of state, Council’s Audit Committee and councillors.
Highlights of the comments and recommendations of the MPAC, included concern over issues relating to assets, Supply Chain Management (SCM) policy and internal controls, and irregular/wasteful expenditure.
Cllr Ndlovu made special mention of the status of municipal assets.
“The sale of municipal assets, including farms and vacant land, is not supported (by MPAC). We are saying the municipality must own more land.”
The MPAC has also requested more frequent reports on the state of water entity, and felt it should be a standing item on the Exco and Council agendae.
Another proposed standing item related to bad debt.
“Management is instructed to develop and implement cost-cutting measures immediately, and to take care in managing the cash resources of the municipality.”
Cllr Ndlovu suggested the service provider appointed for debt collection submit regular reports, to enable council to monitor its progress.
“This must be a standing item on the agenda of Council and Exco, until the cash flow situation normalises.”
In conclusion, Cllr Ndlovu resolved to recommend the Oversight Report for 2014/15 be adopted by Council, and be approved without reservation.
However, this was not to be.
Responding to the report as a whole, Mayor, Afzul Rehman agreed with adopting the report, but argued any matters not pertaining to that financial year, be summarised and
tabled before Exco instead.
“MPAC has pre-empted some discussions to the Executive Committee, and should not deal in speculation and rumours.”
After some back-and forth, Speaker, Mandla Zihkali then asked opposition councillors to give their feedback.
Fedcon councillor, Alex Liu stated those responsible for wasteful expenditure had to be held accountable, but congratulated MPAC on the report nonetheless.
Azapo councillors reiterated his sentiments.
“Departments concerned need to take action to resolve issues. That way, we can move forward as a collective.”
DA councillor, Bertie Meiring said the party supported the report as presented, but noted its concerns about sale of assets and weakness in SCM policy.
The party also expressed its dissent at taking loans for capital projects.
“We do not support the selling of municipal assets. Debt collection is an important issue. Financial reports should receive priority.”
Sibusiso Lukhele, NFP councillor revealed the party had expressed support for the Oversight Report, with reservations.
As tension built, Cllr Zikhali abruptly called the meeting closed.
