Buffalo City Metro (BCM) council wants suspended municipal manager Andile Fani to explain why BCM incurred R450-million in irregular expenditure for two years running.
This amount is a portion of R1.2-billion irregular expenditure incurred by the metro since 2011.
The remaining amounts will also be investigated.
Council took a unanimous resolution yesterday to have a separate investigation into Fani’s involvement in the gross irregularities and flouting of tender processes when issuing tenders worth millions of rand.
The decision followed a discussion of a 800-page report tabled by BCM’s municipal public accounts (Mpac) chairman, Sakhumzi Caga, at a special council meeting at the East London City Hall yesterday.
Caga admitted that Fani was not called to give his side of the story during the compilation of the report due to his pending disciplinary hearing, which prohibited him from coming into municipal buildings.
This was among the reasons that the council resolved to embark on a separate probe, and not add new charges to his ongoing disciplinary hearing.
Fani had not responded to questions at the time of writing yesterday.
He is on suspension for his alleged involvement in flouting supply chain management processes when BCM authorised payment of more than R2-million to a Johannesburg-based company to build low-cost houses in Duncan Village.
The contract was extended to include Reeston without tender processes being followed.
Caga said the committee recommended that fresh charges be brought against Fani.
“The committee is of the view that the accounting officer either did not take appropriate action or did not ensure that appropriate action was taken to deal with the irregular expenditure, which amounts to financial misconduct.
“While it may be that others are involved , the ultimate responsibility rests with the accounting officer over the period of 2012 to 2014,” said Caga.
He said Fani’s office had an obligation to prevent irregular expenditure.
“Every financial year we are told one thing by the Auditor-General. The supply chain management is controlled by someone, in this case the office of the city manager,” Caga said.
Although ANC councillor Sindile Toni agreed that additional charges should be included in Fani’s disciplinary process, ANC chief whip Mzwandile Vaaibom said it was too late to add charges now.
“We cannot add charges. A separate investigation has to be conducted,” he said.
BCM executive mayor Alfred Mtsi said Fani’s disciplinary hearing was ongoing.
“It’s not nice to discipline people. It’s a painful thing to do but people must learn to change,” he said.
Former mayor Zukiswa Ncitha also wanted the BCM council to hold Fani accountable for misleading the Mpac two years ago over amounts in a write-off of unaccounted-for payments. — msindisif@dispatch.co.za / mamelag@dispatch.co.za
Fani must explain R450m
This amount is a portion of R1.2-billion irregular expenditure incurred by the metro since 2011.
The remaining amounts will also be investigated.
Council took a unanimous resolution yesterday to have a separate investigation into Fani’s involvement in the gross irregularities and flouting of tender processes when issuing tenders worth millions of rand.
The decision followed a discussion of a 800-page report tabled by BCM’s municipal public accounts (Mpac) chairman, Sakhumzi Caga, at a special council meeting at the East London City Hall yesterday.
Caga admitted that Fani was not called to give his side of the story during the compilation of the report due to his pending disciplinary hearing, which prohibited him from coming into municipal buildings.
This was among the reasons that the council resolved to embark on a separate probe, and not add new charges to his ongoing disciplinary hearing.
Fani had not responded to questions at the time of writing yesterday.
He is on suspension for his alleged involvement in flouting supply chain management processes when BCM authorised payment of more than R2-million to a Johannesburg-based company to build low-cost houses in Duncan Village.
The contract was extended to include Reeston without tender processes being followed.
Caga said the committee recommended that fresh charges be brought against Fani.
“The committee is of the view that the accounting officer either did not take appropriate action or did not ensure that appropriate action was taken to deal with the irregular expenditure, which amounts to financial misconduct.
“While it may be that others are involved , the ultimate responsibility rests with the accounting officer over the period of 2012 to 2014,” said Caga.
He said Fani’s office had an obligation to prevent irregular expenditure.
“Every financial year we are told one thing by the Auditor-General. The supply chain management is controlled by someone, in this case the office of the city manager,” Caga said.
Although ANC councillor Sindile Toni agreed that additional charges should be included in Fani’s disciplinary process, ANC chief whip Mzwandile Vaaibom said it was too late to add charges now.
“We cannot add charges. A separate investigation has to be conducted,” he said.
BCM executive mayor Alfred Mtsi said Fani’s disciplinary hearing was ongoing.
“It’s not nice to discipline people. It’s a painful thing to do but people must learn to change,” he said.
Former mayor Zukiswa Ncitha also wanted the BCM council to hold Fani accountable for misleading the Mpac two years ago over amounts in a write-off of unaccounted-for payments. — msindisif@dispatch.co.za / mamelag@dispatch.co.za
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