North West SCOPA sent a stern warning to municipalities that continue to receive disclaimers for 7 years
The North West Provincial Legislature’s Standing Committee on Provincial Public Accounts (SCOPA) led by the Chairperson, Hon. Mahlakeng Mahlakeng, sent a stern warning to the management of Mamusa and Ditsobotla local municipalities for their continued failure to register an improvement in their audit outcomes and their continued disregard of the Municipal Financial Management Act (MFMA)
Both municipalities appeared before the committee at Rustenburg Civic Centre, Rustenburg on Tuesday and they have both been receiving disclaimers for the past 7 years.
In a report presented by a Senior Manager at the Auditor General’s Office to the Committee about Mamusa, amongst others; the municipality has spent more than R305m without following proper supply chain management legislation and that amounted to irregular, wasteful and fruitful expenditure; the Municipality is doing business with close family members or associates of 9 officials in the municipality and the officials did not declare their interest.; and about 16 awards were procured without at least three written price quotations and their deviation was approved even though it was possible to obtain 3 quotations.
“Five contracts worth R7 228 993.03 were awarded without any quotations accepted in accordance with the requirements of the supply chain management legislation. We have also found out that close family members or associates of nine officials have an interest in awards made to the value of R3 689 750. Nine of these officials did not declare their interest.
“Reasonable steps were not taken to prevent unauthorised expenditure, irregular expenditure and fruitless expenditure as required by section 62(1)(d) of MFMA. An effective system of internal control for debtors and revenue was not in place as required. Also in asset management, an adequate management, accounting and information system which accounts for assets was not in place as required,” AG said.
He added that an effective system of internal control for assets (including asset register) was not in place. AG said there was no effective structure for internal control for liabilities at the municipality.
Hon. Mahlakeng said the unauthorised, irregular and fruitless and wasteful expenditure incurred by the municipality was not investigated to determine if any person was liable for the expenditure as required by Section 32(2)(a)(ii) of the Municipal Financial Management Act (MFMA).
“We will take drastical measures against all those municipalities that continue to undermine the law. The auditor general also highlighted that the municipality supply chain management is in tatters and there is no accountability.
We are extremely unhappy about this municipality. We have sent them fifteen questions and none of the questions were answered accordingly. There is lack of understanding of what is needed or expected from them by this Committee,” said Hon. Mahlakeng.
“If there is no proper response to our questions in the next seven working days, we will be left with no choice but to take legal action against the municipal manager, Mr Rantsho Gincane as he is accountable for the municipal finances.
“SCOPA is a Committee of Parliament and we want accountability. Taxpayers’ money has been misused and we need answers. You must table a proper report in the next seven working days.
“The fruitless, wasteful and irregular expenditure affect basic service delivery to our people. Municipalities need to follow the Integrated Development Plan (IDP) to avoid irregular expenditure,” said Hon Mahlakeng.
Mamusa local municipality Municipal Manager, Aaron Mocwana said they will ensure that they come with proper answers in the next sitting.
“We will ensure that we come up with strategic plans to improve the situation at the municipality. We will work tirelessly to ensure MFMA prescripts are followed,” said Mr Mocwana.
The Committee recommended that the two municipalities must work closely with the Auditor General’s office to ensure that they get their house in order.
For more information contact:
Namhla Luhabe
Cell: 079 527 0628
