The National Treasury is instituting forensic investigations into at least 14 troubled Eastern Cape municipalities rocked by claims of financial irregularities, including corruption and fraud.
Provincial co-operative governance and traditional affairs (Cogta) MEC Fikile Xasa confirmed to the Daily Dispatch that highly-specialised teams from the National Treasury, working together with their provincial counterparts, had been dispatched to probe the finances of 14 troubled municipalities.
These include King Sabata Dalindyebo (KSD), Port St Johns, Ingquza Hill, Great Kei, Raymond Mhlaba, Amahlathi, Enoch Mgijima, Ngcobo, Ngqushwa, Walter Sisulu, Mhlontlo, Sakhisizwe, Emalahleni, and Mnquma.
“We went to areas where there had been petitions and managed to address some of the issues” the MEC said.
“But there were other issues such as supply chain processes not being adhered to and claims of fraud. We felt we needed to rope in people who are trained, people with expertise to come and institute forensic investigations into these municipalities.”
He said different teams had been dispatched to various municipalities to conduct probes.
The Dispatch can confirm that a team sent to investigate financial irregularities at KSD arrived on Wednesday and was formally welcomed by mayor Dumani Zozo.
The team was led by Eastern Cape Cogta chief director Thabo Mdukiswa.
The Dispatch has seen a copy of a letter sent to Zozo on Tuesday by the team, detailing the terms of reference for their investigation.
“The department [Cogta] has sought assistance of National Treasury to appoint forensic investigating firms for various municipalities in the province.
“King Sabata Dalindyebo municipality is one of the municipalities that has been identified for this exercise,” stated the letter.
“Subsequent to the receipt of petitions from organised labour and various other organisations from the King Sabata Dalindyebo municipal area, the department has held engagements with petitioners and municipal leadership, both administrative and political.
“The analysis of information gathered on the matters raised in the petitions, has led the department to take a decision to institute a forensic investigation,” it further reads.
The Dispatch previously reported that Xasa had tabled a report to the KSD council following a three-month investigation into nepotism, maladministration, fraud and corruption claims.
Among many issues, was the R71m paid out to KSD employees as part of outstanding task grade monies.
The report revealed that municipal infrastructure grants, electricity grants, and equitable share allocations, had been diverted to pay off task grade salaries, something which constitutes irregular expenditure.
On Thursday, KSD municipal spokesperson Sonwabo Mampoza confirmed that a team of experts had descended on the municipality.
“The mayor [Zozo] promised that KSD will do everything to support the team,” he said.
Mampoza added that the team indicated that it would first investigate the issue of task grade monies as well as the municipality’s fleet management which saw KSD getting a R140m loan from FNB to purchase a new fleet, including a road fixing plant...