PEDDIE-based Ngqushwa Municipality has purchased roadworks plant machinery valued at more than R30-million allegedly without following the proper procurement process.
This has left politicians fuming. Council speaker Zukisa Jowela this week said council refused to take ownership of the machinery as the transaction had been done without it being informed. According to a budget and treasury report tabled in council last week, part payments of R4.5-million of this transaction have since been declared unauthorised expenditure.
The hire purchase deal signed on December 11 by municipal manager Vuyokazi Mbelani and Tsolo businessman Mcebisi Mlonzi, who supplied the machinery, is now being investigated.
The cash-strapped Ngqushwa Municipality, which last month pleaded for a financial bailout from Bhisho, is the second provincial municipality after Amahlathi to be embroiled in a scandal after buying machinery without allegedly following due processes.
A fortnight ago, the Saturday Dispatch reported that Amahlathi had bought roadwork machinery valued at R40-million, also through Mlonzi, without processes being followed while their chief financial officer Joyce Ntshinga was on bereavement leave. Mlonzi could not be reached for comment yesterday.
According to a hire purchase agreement and budget and treasury report on irregular and unauthorised expenditure, the Ngqushwa deal was signed by Mbelani on December 11 and an initial payment of R2.1-million made on the same day.
The machinery includes two Model 730 art trucks, one excavator, a sprinkler water tank, one front-end loader, two Massey Ferguson tractors, a compactor, a backhoe loader and a refuse truck.
According to the agreement, the municipality was to pay an initial R2.1-million fee followed by 36 equal instalments, with the first due at the end of February.
The documents show the municipality paid an initial R2.1-million on December 11, R957347 on March 5 and two instalments of R729347 on April 1 and April 30, to take the amount paid so far to more than R4.5-million.
Jowela this week said the deal had been done without council blessing, which is required for purchases above R5-million.
He said the transaction had since been declared unauthorised and “the person who procured that machinery without council approval will have to incur that bill”.
Mbelani yesterday refused to comment, but said the deal had followed supply chain regulations.
“Due processes were followed by the bid adjudication committee and I was satisfied,” Mbelani said. — asandan@dispatch.co.za
Council red light for R30m municipal deal
This has left politicians fuming. Council speaker Zukisa Jowela this week said council refused to take ownership of the machinery as the transaction had been done without it being informed. According to a budget and treasury report tabled in council last week, part payments of R4.5-million of this transaction have since been declared unauthorised expenditure.
The hire purchase deal signed on December 11 by municipal manager Vuyokazi Mbelani and Tsolo businessman Mcebisi Mlonzi, who supplied the machinery, is now being investigated.
The cash-strapped Ngqushwa Municipality, which last month pleaded for a financial bailout from Bhisho, is the second provincial municipality after Amahlathi to be embroiled in a scandal after buying machinery without allegedly following due processes.
A fortnight ago, the Saturday Dispatch reported that Amahlathi had bought roadwork machinery valued at R40-million, also through Mlonzi, without processes being followed while their chief financial officer Joyce Ntshinga was on bereavement leave. Mlonzi could not be reached for comment yesterday.
According to a hire purchase agreement and budget and treasury report on irregular and unauthorised expenditure, the Ngqushwa deal was signed by Mbelani on December 11 and an initial payment of R2.1-million made on the same day.
The machinery includes two Model 730 art trucks, one excavator, a sprinkler water tank, one front-end loader, two Massey Ferguson tractors, a compactor, a backhoe loader and a refuse truck.
According to the agreement, the municipality was to pay an initial R2.1-million fee followed by 36 equal instalments, with the first due at the end of February.
The documents show the municipality paid an initial R2.1-million on December 11, R957347 on March 5 and two instalments of R729347 on April 1 and April 30, to take the amount paid so far to more than R4.5-million.
Jowela this week said the deal had been done without council blessing, which is required for purchases above R5-million.
He said the transaction had since been declared unauthorised and “the person who procured that machinery without council approval will have to incur that bill”.
Mbelani yesterday refused to comment, but said the deal had followed supply chain regulations.
“Due processes were followed by the bid adjudication committee and I was satisfied,” Mbelani said. — asandan@dispatch.co.za
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