DA reports Lekwa CFO appointment and contract extension to Public Protector
The DA in Lekwa has approached the Public Protector over the municipality’s CFO appointment and a disputed R1.9 million contract extension.
The Democratic Alliance (DA) in Lekwa has lodged a complaint with the Public Protector over the appointment of the municipality’s chief financial officer (CFO), Khumbudzo Nemavhidi, and the alleged extension of a multimillion-rand service provider contract.
DA councillor Alberto Franco said Nemavhidi’s appointment was made despite the MEC for Cooperative Governance and Traditional Affairs (Coghsta) not concurring with the appointment.
According to Franco, the MEC subsequently recommended that council rescind the appointment, but Nemavhidi has continued to serve as CFO.
The DA has also raised concerns about a R1.9m extension of scope granted to a service provider responsible for preparing the municipality’s annual financial statements. Franco said the matter was tabled before council during a meeting on August 27.
“During a council meeting on August 27, the council was asked to approve a R1.9m extension of scope to a service provider known to the DA,” said Franco.
He further alleged that the CFO advised council that revised GRAP 104 requirements did not require the extension to be subjected to public consultation.
“The DA believes this advice was incorrect and may have misled council on the legal requirements governing the contract extension,” he said.
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Franco said the original contract was valued at R8.4m and had previously been extended by R800 000. The latest R1.9m extension amounts to approximately 22.6% of the original contract value, according to the DA.
Given what it describes as the seriousness of the allegations, the DA has called for Nemavhidi’s immediate removal.
“This is a necessary step to protect the integrity of the municipality and to ensure that there are sound financial management processes. Repetitive unlawful, procedurally defective appointments create a perception of political corruption, favouritism and patronage,” said Franco.
Lekwa Municipality communications manager Lubabalo Majenge said the municipality had noted with concern the DA’s statements regarding matters relating to its administration and governance.
Majenge said the municipality was concerned about what appeared to be a growing practice of taking matters relating to internal processes and council deliberations to media platforms, including radio stations and social media.
“Of particular concern is that such matters are being publicised even while they remain subject to consideration and determination through the appropriate municipal structures and processes,” said Majenge.
He rejected the DA’s suggestion that the extension of the service provider’s scope was undertaken outside the applicable legislative framework.
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“The municipality followed the applicable processes and requirements provided for in the Municipal Finance Management Act, 2003 (Act No. 56 of 2003), together with the relevant regulations and circulars. The matter was duly subjected to the appropriate municipal processes and was subsequently considered and supported by council,” said Majenge.
Majenge said it was important to correct the impression created by the DA that the extension was undertaken without the requisite consideration or approval.
He added that once a report is tabled before council, it becomes a council item and is dealt with through the municipality’s established processes.
“The municipality is particularly concerned by the recurring practice of releasing or publicising municipal information while matters are still being processed through council and its established structures.
“Similar concerns arose in relation to the Skills Audit Report, appointment of the chief financial officer and other matters that were placed in the public domain while still undergoing consideration through the appropriate municipal processes,” said Majenge.
Majenge said the municipality recognised and respected the role of political parties and councillors in exercising oversight, asking questions and holding the administration accountable.
“Such oversight is an essential component of democratic local government. However, such oversight should be exercised with due regard for, and mutual respect for, established institutional processes, particularly where matters remain under consideration by council or its committees,” he said.
He said legitimate differences of opinion regarding council matters should be addressed through the appropriate institutional mechanisms.
“The municipality is of the view that legitimate differences of opinion regarding council matters should be addressed through the appropriate institutional mechanisms, rather than through premature public pronouncements that may create inaccurate or misleading perceptions about the municipality and its processes,” said Majenge.
