In 2008, the Kungwini Local Municipality was embroiled in widely publicised allegations of gross irregularities. These irregularities ranged from gross financial misconduct, mismanagement, maladministration, fraud and corruption.
The Minister for the then Department of Provincial and Local Government, requested that the MEC for the then Department of Local Government investigate alleged irregularities.
The then MEC, appointed Messrs KPMG, to undertake a fact finding process, whereby the alleged irregularities were investigated. This process took place in the form of a forensic investigation.
KPMG was given the following investigative mandate:
* an investigation into the Supply Chain Management Processes and certain transactions associated therewith
* an investigation into the recruitment process followed in the appointment of senior management officials at KLM
* an investigation into the process for the issue of a credit card to the Executive Mayor and the usage thereof
* an investigation into other generic allegations raised by South African National Civic Organisation (SANCO).
Through its inquiry, KPMG uncovered the following malpractices:
* tender rigging
* irregular award of contracts
* corruption
* fraud
* nepotism
* flawed recruitment processes.
In all these instances the involvement, interference and collusion of senior management and officials is overtly visible. As the government of the day we have consistently stated that there should be zero tolerance on corruption and in cases where breaches have occurred, strong action should be taken against those involved.
The report further recommends that disciplinary action be taken by the council of the Metsweding Local Municipality on all the officials and senior managers implicated and that criminal charges be instituted against the affected officials and service providers.
The Department of Local Government and Housing copied the Ministers of Co-operative Governance and Traditional Affairs and Minister of Finance, Chairperson of the National Council of Provinces (NCOP), Premier of Gauteng ,MEC of Finance Gauteng, Speakers of Gauteng Legislature and Kungwini Local Municipality.
The MEC for Local Government and Housing, Kgaogelo Lekgoro requested the Speaker of Kungwini Council to implement all recommendations in the report.
For more information contact:
Fred Mokoko
Cell: 082 447 8404
Tel: 011 355 4013
Issued by: Department of Local Government and Housing, Gauteng Provincial Government
7 September 2009
