The Standerton Advertiser has been divulging the forensic report on the Lekwa Municipality, as well as the comments from the Auditor-General, in recent issues.
For clarity’s sake, individual attention was and is given to separate issues.
Where supply chain management is concerned, the municipal manager disbanded committees by invoking the Municipal Chain Management Regulation 32 of 2005, without allegedly fully adhering to Regulation 32 (1).
Ms Gugulethu Mhlongo-Ntshangase said the decision was based on a need to convene new committees as required by municipal policy.
The conclusion was that Lekwa may suffer financial losses because of lack of competitive bidding and an abuse of supply chain management prescripts.
It was recommended that council take appropriate action and Ms Mhlongo-Ntshangase be disciplined.
Not providing tender documents to Tlou Consulting (Pty) Ltd to adjudicate in the Morgenzon Booster-system was the next thorny issue.
A further allegation was that R & D Mrazane Trading was also appointed, which was not in line with Regulation 32 (1) (d).
Uthukela Municipality granted permission after Lekwa already appointed the company. (Uthukela is a district municipality on the western boundary of KwaZulu-Natal)
It was again recommended that Lekwa appoint an external service provider to implement control.
Appointments of consultant Nako Iliso Consulting Engineers and contractor Tarcron (Pty) Ltd were next.
The allegation was that the municipal manager did not consider the Bid Evaluation Committee’s recommendations.
The audit observation found that Lekwa did not appoint the recommended contractor as per the report from Tlou Consulting and appointed Thaphiwe Logistics and Calandra Trading 621 (Pty) Ltd instead.
The appointment letter, dated 5 January 2018, was issued before the sitting of the adjudication committee on 8 January.
The recommendation was that controls for supply chain management be implemented and an external service provider appointed.
With the refurbishment and upgrading of the Standerton Water Treatment Plant, Tlou Consulting (Pty) Ltd allegedly contravened paragraph 28 (2) of the Supply Chain Regulation. According to the report, Tlou indicated that Lekwa prepared six tender documents and Tlou recommended Wonza Projects.
Audit observations said the committees of the municipal manager were not functional and she failed to take the necessary action.
Another resurfacing allegation was that service providers are paid before the actual work is done, breaching the Municipal Finance Management Act.
Ms Mhlongo-Ntshangase said in this regard, according to the report, that the Municipal Infrastructure Grant (MIG) from national treasury is aimed at funding projects for basic infrastructure in rural areas.
The recommendation was that council take appropriate action.
The allegation about an unspent MIG was found to be true and it was recommended that Lekwa request support from Cogta for utilisation of the MIG.
Written warnings to all officials involved in the use of the MIG were recommended as well.
