Parliament, Friday, 7 May 2021 – The Standing Committee on Public Accounts (Scopa) this week conducted oversight visits to municipalities in the Eastern Cape Province. The committee held hearings with the Nelson Mandela Bay Metropolitan Municipality, OR Tambo and Amathole district municipalities, as well Enoch Mgijima Local Municipality.
ON OR TAMBO DISTRICT MUNICIPALITY
The committee was disadvantaged when interacting with OR Tambo municipality, as the committee received the presentation from the municipality during the meeting. When it inquired from the mayor of the municipality, the committee was informed that the mayor had only received a report this morning from the acting municipal manager.
The executive mayor informed Scopa of the difficulty of addressing the R2 billion irregular expenditure due to the breakdown of the working relationship between herself and the acting municipal manager. The committee was informed by the South African Local Government Association and the MEC of Cooperative Governance and Traditional Affairs in the province that there is a political problem causing instability in the municipality.
The committee decided to consider further investigations on this matter in terms of Rule 245(b)(ii) of the National Assembly. The committee has resolved to call back the municipality, with all the relevant stakeholders, including the deputy mayor, as soon as possible.
ON AMATHOLE DISTRICT MUNICIPALITY
Scopa was informed by the Amathole District Municipality that the financial recovery plan has not been developed, even though according to the law this should have happened within 90 days and this time period has passed. The committee was informed that National Treasury is responsible for developing this financial recovery plan. The committee resolved to enquire from National Treasury on its status.
The committee was also informed that the municipality has no money and will not be able to pay salaries for May and June. Scopa was informed that the Director of Corporate Service was responsible for the “unlawful” categorisation of the municipality and the increasing of officials’ salaries. Scopa was informed that this director is now working at the office of the MEC for Finance as the Chief of Staff and that this matter is now with the courts. Scopa has given the municipal manager and the mayor 21 days to provide the committee with a status update on this matter.
Scopa has also informed the municipality that it will not support a bailout, given the municipality’s current financial management environment. Scopa believes that you cannot provide financial solutions to non-financial problems. The municipality needs to demonstrate that it takes the current situation seriously so that the committee can assist it. Scopa also believes that the municipality’s leadership should lead by example in relation to financial management.
ON ENOCH MGIJIMA LOCAL MUNICIPALITY
The municipality appointed a service provider to perform VAT reconciliations where the service provider takes 25% of the refunds from the South African Revenue Service. Scopa believes that the percentage charged by the service provider is high and has requested the details about the service provider and the officials who appointed them. Scopa has also requested more details on the yellow fleet plant contract, which is currently costing the municipality R2.4 million per month, even though it is not fully utilised by the municipality.
The committee has also requested information on the post for Director: Community Services, who was appointed without meeting the minimum requirements. Scopa has also noted that there is a difficult working relationship between the mayor and the municipal manager.
ON MAKANA LOCAL MUNICIPALITY
Scopa found that the community has been struggling with water supply for a very long time. Scopa has requested the municipality to provide more details on the James Kleynhans Water Supply (water treatment plant) tender within seven days. This tender was funded by the Department of Water and Sanitation since 2006 and has not been progressing as it should be. Scopa has also requested a progress report on that project.
Scopa also noted that there is a difficult working relationship between the mayor and the municipal manager. The committee was informed that no performance management assessment was done for the municipal manager. The mayor informed Scopa that the IDP manager responsible for this performance assessment did not perform his duties. The committee requested this IDP manager to come to the meeting and account, and was informed that he has left the office and is not answering his phone. The committee has requested a detailed report on this matter by 12 May 2021 on why he left early and the actions that will be taken against him. Scopa has also given the mayor and the municipal manager 30 days to sign performance agreements.
ON NELSON MANDELA BAY METROPOLITAN MUNICIPALITY
Scopa has requested the municipality to provide monthly audit action plans on their responses to the findings of the Auditor-General. Scopa’s intervention is required on the tenders that have been corruptly awarded. The committee will interact with law enforcement agencies, particularly the Directorate of Priority Crime Investigation (the Hawks). There is a R21 million tender that has allegedly led to the assassination of people in the area. The committee has requested the municipality to provide progress reports on this matter.
ON THE WAY FORWARD
Scopa informed all the municipalities that political problems do not justify the abdication of their duties as public representatives and officials. The committee also met with the Premier of the Eastern Cape to discuss matters arising from the engagement with the OR Tambo and Amathole district municipalities, as well as the Enoch Migijima Local Municipality. The committee welcomes the commitment from the premier that there are interventions underway that seek to address the challenges in these municipalities. The committee will also table its report on its visit to these municipalities before the National Assembly. Once the report is adopted by Parliament the municipalities will receive a copy through the Office of the Speaker.
ISSUED BY THE PARLIAMENTARY COMMUNICATION SERVICES ON BEHALF OF THE CHAIRPERSON OF SCOPA, MR MKHULEKO HLENGWA.
For media enquiries, please contact the committee’s Media Officer:
Name: Ms Faith Ndenze
Parliamentary Communication Services
Tel: 021 403 8062
Cell: 081 377 0686
Email: fndenze@parliament.gov.za
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