Struggling Emfuleni municipality’s R60m wasteful expenditure exposed

The embattled Emfuleni Local Municipality in Gauteng, which has been placed under administration due to poor service delivery, must recover R60 million from a service provider which benefited from an irregular contract extension which is granted.
This is according to a leaked forensic report into allegations of wasteful expenditure at the municipality, which is among the poorest in the country, during the 2017/2018 financial year.

The report, compiled by forensic company Comperio Consulting and seen by Sunday Independent, shows that the money to be recouped from Mafoko Security includes R1.8 million in duplicate payments, overcharges for vehicles and increased monthly fees. Emfuleni Municipality is one of the worst performing in the country. In his 2017-2018 municipal audit report, Auditor-General Kimi Makwetu revealed that Emfuleni’s books were not audited following the shooting of one of the auditors in the leg.

Emfuleni, which has experienced massive service delivery challenges to a point it could not even pay utility bills and collect rubbish, was then placed under administration last year due to financial mismanagement and lack of service delivery. At the time, Gauteng Premier David Makhura said the municipality was not able to guarantee the provision of a minimum standard of services to communities without intervention from the national or provincial government.

 

Despite its many challenges, the report showed that Mafoko scored a payment bonanza of over R165 million after its initial transversal contract was extended without following prescripts of the Municipal Finance Management Act (MFMA). While the report does not specify what action should be taken against people who irregularly awarded the contract, it says the following officials must be held accountable:

Former municipal manager Sam Shabalala who signed a three-year contract despite being allowed to conclude a maximum two-year deal, resulting in R54 931 666.11 worth of irregular expenditure. Acting municipal manager Oupa Nkoane who extended the contract during February 2018 without following due process, resulting in irregular expenditure totalling R38718937.77.

Former deputy municipal manager for public safety and community development John Mokoena, for instructing public safety manager Nnete Makhubo to enter into a contract with Mfoko, resulting in the conclusion of the three-year contract and irregular expenditure to the amount of R54 931 666.11.

In other news – Man’s body found in Table Mountain ravine near Camps Bay

The WSAR was initially set to assist with recovering the body. A man’s body was discovered on Table Mountain in Cape Town on Sunday morning, according to authorities.

Wilderness Search and Rescue (WSAR) spokesperson Johann Marais said the body was found near Woody Ravine, on the Camps Bay side of the mountain. That section of the park has several popular hiking trails. He said forensic experts were on the scene to investigate. Read more

Source: IOL

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