North West SCOPA condemns lack of Contract Management by Maqussi Hills Municipality on projects worth over R50, 4 million
The North West Provincial Legislature’ Standing Committee on Provincial Public Accounts (SCOPA) has strongly condemned Maquassi Hills Local Municipality for lack of contract management on infrastructure projects worth over R50,4 million in Wolmaranstad.
This follows virtual Municipal Finance Management Act public hearings with municipality to account on the 2018/19 audit report.
According to the audit report, the municipality failed to apply contract performance and monitoring to seven contracts to ensure efficient contract management.
Public Accounts Committee Chairperson Hon. Dliso in Lebaleng, there are incomplete houses where service provider was paid. “In an oversight visit conducted in an informal settlement near Lebaleng, for many years the community has been without water, sanitation and electricity as they have even approached the Legislature lodging complaints through a petition,” said Hon. Dliso.
“It is worrying that during procurement processes, all documents are available yet during audit period documents are missing. We need consequence management on the matter and to know the perpetrators and who is held accountable. The Committee also needs to know if criminal cases where opened as prior year audit findings were never addressed by the municipality,’ said Hon. Dliso.
He also said the municipality has used regulation 32 of the Treasury regulation for certain projects averting supply chain processes. “Failure to collect revenue might lead the municipality using conditional grants for operations and it will affect its cash flow,” said Hon. Dliso.
Furthermore, nine competitive bids worth R63 million were adjudicated by committees which were not properly constituted in terms of supply chain management regulations and policies. On the financial year under review, the municipality incurred a disclaimer audit opinion with findings for the second financial year.
Hon. Dliso also said it is worrying that prior year audit findings remained unchanged as there is constant non-compliance on supply chain management regulations and competitive bidding processes were not followed.
“Irregular expenditure of the municipality has increased from R153, 1 million in the prior year to R226, 7million yet no official was held ever accountable. The Municipal Public Accounts Committee does not have any support to conduct investigations on these matters as it does not have relevant officials including researchers and legal officers,” said Hon. Dliso.
The Municipal Manager, Mr. Velaphi Zikalala said prior year audit findings could not be addressed due to lack of documents and poor record management. “We do not have enough information to address these findings and MPAC has also been constituted as Section 32 committee and Financial Disciplinary Board to investigate unauthorised, irregular and fruitless and wasteful expenditure.
“A service provider has also been appointed to compile a business plan in 2019 on water conservation demand management to Department of Water and Sanitation so as to source funding for water conservation strategies,” said Mr. Zikalala.
Hon. Dliso said the municipality should submit a post audit action plan addressing current and prior year audit findings with proper timelines in 72 hours. “We also require a concrete plan on how to ensure that the people of the informal settlement near Lebaleng have water and sanitation and relevant services. The municipality should also submit a strategy on how the municipality will pay creditors on time and proper credit payment policy. It cannot be correct that the municipality chooses to pay certain service providers when others such as Eskom and water board are paid after 10 to 12 months.
“The Public Accounts Committee must be providing with list of all projects with the amount contracted and progress. We also need a detailed report of the cost incurred by the municipality after an Administrator appointed Municipal Manager whilst the municipality having municipal manager. This happened under Section 139 two years back and we have been hammering on adherence to legislature as no one is above the law.
“The municipality should further provide revenue collection plan, report on dealing with consultants, how much was paid and detailed plan on addressing the backlog of oversight reports and water tankering,” said Hon. Dliso.
He said the municipality should further submit a detailed report on COVID19 expenditure which must indicate process followed to appoint service providers, names of consultants that are used to compile annual financial statements, how much were they paid. “These consultants are just milking municipalities and failed to produce results as we are tired with these thing of municipalities being over dependent or reliant on consultants that do not produce results,” said Hon. Dliso.
Issued by: North West Provincial Legislature: Media & Communications Unit on behalf of the Chairperson of the Standing Committee on Provincial Public Accounts – Hon. Job Dliso.
For further information, contact Namhla Luhabe at 079 527 0628.
