SCOPA instructs Municipal Manager of Maquassi Hills Municipality to investigate unauthorised and fruitless expenditure
On Wednesday, 12 August 2015, the North West Provincial Legislature’s Standing Committee on Provincial Public Accounts (SCOPA) instructed the municipal manager of Maquassi Hills Local Municipality to investigate irregular, wasteful, unauthorised and fruitless expenditure within the municipality.
Section 32 of Municipal Finance Management Act 56 of 2003 provides that the accounting officer must inform the Mayor, MEC for the Department of Local Government and Human Settlement and the Auditor General in writing of any unauthorised, irregular or fruitless and wasteful expenditure incurred by the municipality and whether any person is responsible or under investigation for such unauthorised, irregular or fruitless and wasteful expenditure and steps that have been taken to recover or rectify such expenditure and to prevent a recurrence of such expenditure.
The accounting officer must ensure that disciplinary or when appropriate criminal procedures are instituted against any official of the entity who committed an act of financial misconduct or an offence in terms of Chapter 15.
This came after the Committee held a public hearing with the municipality over Municipal Finance Management Act audit outcomes of the financial year 2013/14 in Matlosana Local Municipal Chamber.
The Deputy Business Executive at the Office of the Auditor General, Mr. Schalla Van Schalk Wyk said the audit outcomes of five (5) consecutive financial years, which were Disclaimer audit opinions, revealed that the municipality was spending its budget on matters that were not part of the Integrated Development Plans .
“Council conducted public consultations on the budget but our audits revealed that the municipality spending was inconsistent with the IDP. As a result, we also could not determine the extent of irregular, wasteful, unauthorised and fruitless expenditure.
“Supply chain management policies were clearly contravened and the Municipal Public Accounts Committee could not perform its oversight work as there is no oversight report to determine whether funds were spent correctly,” said Mr. Van Schalk Wyk.
SCOPA Chairperson, Hon. Mahlakeng Mahlakeng said the municipal manager must act by conducting investigations as an accounting officer and charge officials who conducts financial misconduct and corruption.
“Forensic reports were never implemented and tabled before council which includes annual and oversight reports. If he fails to investigate, we will have no choice but to charge him ourselves. We are also extremely disappointed on the municipality’s failure to present proper responses to SCOPA questions on the audit report.,” said Hon. Mahlakeng.
He said the municipality’s governance structures need urgent intervention as management could not comply with laws and regulations. “The situation in the municipality has gone out of hand as there is no evidence of consequences management for poor performance and transgressions within the municipality,” said Hon. Mahlakeng.
He said the Department of Finance, Economy and Enterprise Development and the Department of Local Government and Human Settlements must also be involved on ensuring that there is service delivery within communities the municipality.
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