The eThekwini Municipality’s Executive Committee (EXCO) has expressed unhappiness and frustration that the Municipality has incurred further irregular expenditure in the 2010/11 financial year. The Municipality’s annual report was tabled and discussed at the EXCO meeting on Tuesday, 24 January 2012. The report will be tabled for noting at the next full Council meeting on Monday (30 January 2012) and will then be opened for public comment. Council will also develop an oversight report on the Annual Report.
The Auditor General has given the Municipality an unqualified audit opinion, with certain matters of emphasis which are mainly concerning non compliance with Supply Chain Management regulations and water losses. The irregular expenditure totals about R1.3 billion and is up from the previous financial year.
Mayor James Nxumalo warned that stern action will be taken against those found to have been negligent. “This is a matter of serious concern. We are not happy at all about this situation because irregular expenditure has actually doubled compared to the previous financial year. It can’t be business as usual and somewhere, somehow we have to take action otherwise we’re not going to achieve our goal of a clean audit by 2014,” he said. “It looks like somebody is not listening because this is not how we want to run the Municipality. At the end of the day those responsible will have to account.”
Nxumalo said they have tasked City Manager, Sibusiso Sithole, to tighten controls and to look at the composition of committees that deal with supply chain issues like the Bid Adjudication Committee.Sithole said SCM has been identified as the weakest link in the Municipality and certain steps are being implemented to rectify the situation.
These include:
- Relocating the Supply Chain Management Unit from Procurement and Infrastructure Cluster to City Treasury.
- Centralising the Procurement for the whole Municipality.
- Looking at sufficient skills for the SCM personnel.
Sithole said disciplinary measures will be taken where there’s evidence of neglect and opening criminal cases where necessary. The Municipality is currently reviewing all expenditure already incurred in the current financial year, between June-December 2011 in order to reduce irregular expenditure.
“By the end of this financial year irregular expenditure will be far less than what it is this time around. It is important that we hammer home the message that there will be no tolerance of irregular expenditure,” said Sithole.
[wpramazon asin=”0470942185″]
