The Buffalo City Metro (BCM) council has backtracked on its earlier decision to write off more than R1.1-billion in irregular expenditure.
The irregular expenditure accumulated since 2012 by BCM were written off by council as per the Municipal Public Accounts Committee (MPAC) recommendations.
Included in the bill is the “controversial” awarding of a R17-million black refuse bag tender, a R10-million Mdantsane housing tender, as well as a R13.9-million bill incurred when BCM councillors’ salaries were increased without the concurrence of the office of the MEC for local government.
In almost all the cases they are regarded as irregular expenditure due to non-compliance with supply chain management legislation and other applicable regulations.
The results of forensic investigations in all three cases have yet to be made public.
Presenting the recommendation for council to nullify the decision to write off the amount, MPAC acting chairwoman Nontsikelelo Peter said the Municipal Finance Management Act clearly outlined the process to be followed before any irregular expenditure was written off.
“The MPAC report is moving for the rescission of irregular and wasteful expenditure for the 2012-13 financial and for the last financial year, 2013-14.”
She said this was informed by an Auditor-General’s recommendation that the committee recommend to council “the initial portion of the contentious resolution be rescinded”.
Municipal manager Andile Fani appealed to the council to endorse the decision, saying this was as a result of “serious” discussions held between MPAC members and the AG.
“There was a view from the AG that the committee must make sure that there is an investigation and this must be documented.
“Obviously our books will always have this outstanding matter. So they said, ‘let’s rescind this decision and do the actual work’ so that where there are issues that need to be investigated, we can have documents to show that such an investigation was conducted.”
BCM backtracks on R1.1bn write-off
The irregular expenditure accumulated since 2012 by BCM were written off by council as per the Municipal Public Accounts Committee (MPAC) recommendations.
Included in the bill is the “controversial” awarding of a R17-million black refuse bag tender, a R10-million Mdantsane housing tender, as well as a R13.9-million bill incurred when BCM councillors’ salaries were increased without the concurrence of the office of the MEC for local government.
In almost all the cases they are regarded as irregular expenditure due to non-compliance with supply chain management legislation and other applicable regulations.
The results of forensic investigations in all three cases have yet to be made public.
Presenting the recommendation for council to nullify the decision to write off the amount, MPAC acting chairwoman Nontsikelelo Peter said the Municipal Finance Management Act clearly outlined the process to be followed before any irregular expenditure was written off.
“The MPAC report is moving for the rescission of irregular and wasteful expenditure for the 2012-13 financial and for the last financial year, 2013-14.”
She said this was informed by an Auditor-General’s recommendation that the committee recommend to council “the initial portion of the contentious resolution be rescinded”.
Municipal manager Andile Fani appealed to the council to endorse the decision, saying this was as a result of “serious” discussions held between MPAC members and the AG.
“There was a view from the AG that the committee must make sure that there is an investigation and this must be documented.
“Obviously our books will always have this outstanding matter. So they said, ‘let’s rescind this decision and do the actual work’ so that where there are issues that need to be investigated, we can have documents to show that such an investigation was conducted.”
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