Service delivery in city: R144m blow

Polokwane Municipality’s Public Accounts Committee (MPAC) has been tasked to institute further due process after a report tabled in last Wednesday’s council meeting revealed that deviations from Supply Chain Management (SCM) Regulations and irregular spending amounting to more than R144,2 million was incurred during the 2017/18 financial year.
In a report with the heading: Deviations from and ratification of minor (sic) breaches of procurement process, unauthorised, irregular, fruitless and wasteful expenditure report, hundreds of instances where goods and services were procured without following the required supply chain management procedures, were listed.
The report stated that R54 808 435 was spent after officials deviated from Supply Chain Management (SCM) Regulations as allowed in Regulation 36 and that irregular expenditure amounted to R89 451 307. It was, however, highlighted that no fruitless or wasteful expenditure was incurred, a claim that may be disputed when the municipality’s affairs for the last financial year come under the scrutiny of the Auditor-General.
Electrical materials major contributor to deviations
Of the R54 808 435 involved in deviations, procurement from four major service providers stands out. The total expenditure amounts to approximately R50 million only for invoices paid from November 2017 to March 2018.
For electrical materials, one service provider was paid R4 917 675 for a single transaction, while the other three were paid total amounts of more than R8,4 million, R19,6 million and R20 million for 39, 31 and 37 transactions, respectively.
The reason provided for deviation from SCM procedures, was “Deviation – SCM process impractical – Due to the appointed service provider who failed to deliver, service was compromised.”
Repairs to two vehicles sky high
The report stated that a municipal vehicle, referred to as PM 488 was repaired during October 2017 at a cost of R1 210 680,80. Another vehicle of which no number appears in the report, was repaired for a round figure of R1 988,000 during October last year, at the same service provider.
The reasons given here, were “strip and quote” and following SCM procedures being considered an impractical arrangement.
Participants paid R526 680 for function
A payment of R526 680 was made on 27 September last year for participants and artists, cultural services and the reason for the deviation was marked SCM process impractical.
Fleet Africa contract highest contributor to irregular expenses
Nine contracts which have expired and the services had to be retained until a new service provider has been appointed, resulted in irregular expenditure. Expenses relating to the Fleet Africa contract for provision of vehicles to the municipality for the last five years, amounted to R61 404 268,74, being the major contributor.

Story: BARRY VILJOEN
>>barryv.observer@gmail.com