The office of the accountant-general in Pretoria wants Buffalo City Metro’s municipal manager Andile Fani to provide documents on more than R636-million worth of irregular payments made by the metro.
The paperwork is required to form part of a National Treasury investigation into how the city’s books were handled during the 2013-14 financial year.
In a letter to Fani dated February 23 2015, the head of the treasury’s specialised audit services Zanele Mxunyelwa, demanded supporting documentation for what she described as irregular write-offs worth R583-million.
This in addition to:
- More than R13-million paid to three information technology systems companies – Lugogwana Comtech, Empire Praxis and LC3 Solutions trading as Simo Solutions. BCM paid the companies before contracts had been signed, and;
- R40-million paid to finance the South African Cities Network (SACN), a network to help municipalities get clean audits.
Mxunyelwa gave Fani two days to respond, but it was unclear yesterday whether or not Fani’s office has provided the information.
National Treasury spokeswoman Phumza Macanda would not comment on whether or not the required information had been provided, saying: “We generally do not comment on investigations.”
Metro spokesman Keith Ngesi also refused to comment, saying: “BCM is reserving its comment on the matter for now until National Treasury is done with its investigation.”
In her letter to Fani, Mxunyelwa referred to a meeting between her office and Fani, in which Fani made an “undertaking to provide us with supporting documents to facilitate National Treasury investigation on these matters .”
Mxunyelwa is demanding a breakdown of all expenditures related to the R583-million.
She also asked Fani to submit all committee reports which made the recommendations that the amounts be written off, and all council resolutions relating to the write-offs.
This is part of R1.1-billion worth of write-offs the BCM council resolved to reverse two weeks ago, after Fani advised council to do so.
But he made no mention of Mxunyelwa’s letter of demand at the council meeting, except to highlight the importance of rescinding the decision to write-off the amounts.
Mxunyelwa also asked for documents which confirm the memorandum of understanding with SACN, as well as a list of companies which did work during the intervention.
She also asked for printouts from the financial system of all payments made to the three ICT companies.
“Provide documents indicating the procurement process followed in the appointment of these service providers,” and “provide us with the service level agreements for the appointment of all three companies,” she wrote. — zineg@dispatch.co.za
Fani is ordered to account for metro millions
The paperwork is required to form part of a National Treasury investigation into how the city’s books were handled during the 2013-14 financial year.
In a letter to Fani dated February 23 2015, the head of the treasury’s specialised audit services Zanele Mxunyelwa, demanded supporting documentation for what she described as irregular write-offs worth R583-million.
This in addition to:
Mxunyelwa gave Fani two days to respond, but it was unclear yesterday whether or not Fani’s office has provided the information.
National Treasury spokeswoman Phumza Macanda would not comment on whether or not the required information had been provided, saying: “We generally do not comment on investigations.”
Metro spokesman Keith Ngesi also refused to comment, saying: “BCM is reserving its comment on the matter for now until National Treasury is done with its investigation.”
In her letter to Fani, Mxunyelwa referred to a meeting between her office and Fani, in which Fani made an “undertaking to provide us with supporting documents to facilitate National Treasury investigation on these matters .”
Mxunyelwa is demanding a breakdown of all expenditures related to the R583-million.
She also asked Fani to submit all committee reports which made the recommendations that the amounts be written off, and all council resolutions relating to the write-offs.
This is part of R1.1-billion worth of write-offs the BCM council resolved to reverse two weeks ago, after Fani advised council to do so.
But he made no mention of Mxunyelwa’s letter of demand at the council meeting, except to highlight the importance of rescinding the decision to write-off the amounts.
Mxunyelwa also asked for documents which confirm the memorandum of understanding with SACN, as well as a list of companies which did work during the intervention.
She also asked for printouts from the financial system of all payments made to the three ICT companies.
“Provide documents indicating the procurement process followed in the appointment of these service providers,” and “provide us with the service level agreements for the appointment of all three companies,” she wrote. — zineg@dispatch.co.za
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