R64m irregularly spent at EM Municipality, says AG
Elias Motsoaledi Local Municipality made payments in contravention of the Supply Chain Management (SCM) requirements, resulting in irregular expenditure of over R64 million, according to the draft Auditor General Report.
LIMPOPO – An amount of R64 948 315 was spent irregularly in the 2015/16 financial year, the report indicated.
The report stated the local municipality did not implement and maintain an appropriate procurement and provisioning system which is fair, equitable, transparent, competitive and cost-effective during the financial year. It further detailed that in relation to procurement and contract management, goods and services of a transaction value above R200 000 were procured without inviting competitive bids, as required by SCM regulations.
“Contracts were awarded to bidders who did not submit a declaration on whether they are employed by the state or connected to any person employed by the state, as required by SCM regulation 13(c). Awards were made to providers who were in the service of the municipality or whose directors are in the service of the municipality. Furthermore the provider failed to declare that he/she was in the service of the municipality.
Similar non-compliance was reported in the previous year and the municipality did not take disciplinary action against the supplier and officials involved, read the report.
The report further said persons in the service of the local municipality who had a private or business interest in contracts awarded by the municipality failed to disclose such interest, in contravention of SCM regulation 46(2)(e), a code of conduct for councilors issued in terms of the Municipal Structure Act (MSA) and the code of conduct for staff members issued in terms of the MSA.
Seun Mogotji, Bolsheviks Party of South Africa leader, an opposition in the council, said the municipality had a responsibility to ensure compliance in terms of the prescribed financial management competencies.
“Those at the helm should be subjected to a disciplinary inquiry into the dereliction of their duties. We are in awe that the council is not taking action against those responsible.”Julia Mathebe, Elias Motsoaledi Mayor, said the report meant the council should tighten its belt. Meshack Kgwale, Director Executive Support, said the municipality would address the audit findings on SCM in line with the provisions of the applicable legislation.
