Emfuleni Local Municipality once again tries to have default judgment against them suspended:
Dear Johannesburg
It is concerning to note that the Emfuleni Local Municipality has once again tried to have the operation and execution of a default judgement for case between the municipality and a Chinese company who had to supply smart water meters to the municipality
The urgent application brought by the court was struck from the roll with costs. The Public Private Partnership (PPP) that the municipality undertook with the Chinese company, Beijing Fuxing Xioa-Cheng Electronic Technology Stock Company LTD Jvole Power Systems to deliver Smart Water Metres was declared irregular during the 2014/2015 financial year.
Emfuleni’s Supply Chain Management (SCM), Utilities, and Finance departments was placed under administration in 2018. The administrator nor the MEC for Cooperative Governance and Traditional Affairs (COGTA), Lebogang Maile did not act on this irregular contract central to the three departments. MEC Maile was suppose to declare this contract as a contingent liability which he never did.
This contract that was awarded translates to serious financial misconduct under the Section 171 (3) and (4) of the Municipal Finance Management Act which indicates in the case of an official that deliberately or negligently:
- Contravened a provision of the MFMA which resulted in irregular expenditure; or
- Made, permitted or authorised an irregular expenditure (due to noncompliance with any of legislation mentioned in the definition of irregular expenditure): Breach of the Code of Conduct for Municipal Staff Members: in the case of an official whose actions in making, permitting or authorizing an irregular expenditure constitute a breach of the Code;
While section 174 indicates the following:
A person is liable on conviction of an offence in terms of section 173 to imprisonment for a period not exceeding five years or to an appropriate fine determined in terms of applicable legislation.
This is not the first time that the Emfuleni Local Municipality has ignored a default judgement, this is in fact the third time which is a waste of taxpayer’s money. The fact that the municipality continues to ignore a court order clearly indicates that there is a lack of knowledge and experience amongst the officials appointed, a lack of accountability and a lack of political will.
Currently, Emfuleni is busy reconciling their bank accounts, but according to the lawyers, it seems that an amount of up to R449 million was taken from its accounts during this period of attachment. Leaving the municipality with no financial resources left to operate and provide services to the people of Emfuleni. Based on these financial constraints, Emfuleni is looking towards Lesedi Local Municipality to possibly assist with the December payment of salaries to staff and Councillors.
Through our counterparts in the municipality, we will be asking questions about the the appointment of Ledwaba Mazwai Attorneys to ascertain whether they are part of the approved panel of attorneys for the municipality and how much was paid to them to date for their services.
Regards
Adriana Randall MPL
DA Gauteng Shadow MEC for Finance and e-Government
Source: MyJHB
Read more on MyJHB.
Join the fun: Add Your event | Submit a Press Release | Add your listing.
