MSUNDUZI Municipality staff doing business with the council was identified as one of the key areas of concern by the auditor-general, whose report was tabled at a full council sitting yesterday.
The number of staff doing business with council is not yet known, and municipal manager Mxolisi Nkosi has given all municipal employees until Tuesday to declare their business interests, as required by law.
In December, the council celebrated when the municipality received an unqualified audit (with other matters) for the 2010/2011 financial year, an improvement from the two previous financial years, where the council received a qualified audit.
The matters of concern were revealed for the first time to full council yesterday.
• Irregular expenditure amounting to R222,826 million relating to the prior and current period, was incurred mainly as a result of contracts awarded to suppliers in contravention of legislation.
• The municipality incurred significant electricity losses of R82,413 million and water losses of R75,459 million.
• Allowance for debt impairment amounted to R525,990 million.
• Unauthorised expenditure of R136,961 million was incurred due to under-budgeting of finance charges, depreciation and asset impairment.
• Underspending in its capital budget to the amount of R235,361 million (68%). As a consequence the municipality has not achieved many of its objectives as set out in the integrated development relating to service delivery, infrastructure development, community and social services.
• In service delivery and infrastructure development and community social services, 76% of planned and reported targets were not specific in clearly identifying the nature and the required level of performance.
• Investigations of senior managers and other employees are in progress by the provincial intervention team. Completed investigations resulted in criminal proceedings against 14 employees.
The report also noted that the integrated development plan (IDP) was incomplete.
The validity, accuracy and completeness of reported performance against targets could not be confirmed as inadequate source information was provided, according to the report.