Irregular expenditure of at least R164 million during the last financial year (2010/2011) has been uncovered in the City of Cape Town.
The ANC says this makes rubbish of the DA's claims of running squeaky clean operations and disproves its 2011 brag book "The Cape Town Story" on the back of which it campaigned nationally during the last general local government elections. In fact the City of Cape Town regressed from a clean bill of health to an audit outcome with various findings in the last financial year.
The Office of the Auditor General (AG) in a recent report has found that at least R163 868 672 were spend irregularly on procurement and contract management, and that in hundreds of cases employees or their families were given contracts or that in 386 cases valued at R33,8 million no declaration of interest were even obtained from service providers!
Altogether R67,8 million were paid where false declarations of interests were made. In 30 more cases (of undisclosed value) employees failed to disclose their interests in doing business with the city (9 cases) or with other state institutions without requesting approval or declaring their interests (21 cases).
The AG in a submission has found that a contract of almost R10 million was awarded without a competitive bidding process and in 13 cases to the value of R33,4 million contracts were given without advertising for the full required period.
R10,6 million was paid in 48 cases where employees were involved, but providers failed to declare their interests. R5,3 million was paid for work done by prohibited suppliers (2 cases). In 9 cases awards were made without obtaining the required 3 quotations for the work.
In the City of Cape Town's own annual report mention is made that during the last financial year (2010/2011) business was conducted in 1 case with an elected councillor and other staff due to "omission of details in their declaration" to the value of R1,3 million.
Of the employees or their family who did business with council (according to the annual report) three were in fact buyers in the procurement department, 7 each got more than a million Rand payment from the council and the highest "earner" was an inspector who raked in R37,9 million!
The report states as a small footnote that the matters are investigated (internally) and a report will be tabled to council.
The ANC finds this inappropriate and will pursue the matter further with a view to also ask the Public Protector to investigate these unacceptable business dealings and other endemic cases of maladministration and misappropriation in the City of Cape Town.
Statement issued by ANC Councillor Rhoda Bazier, City of Cape Town, March 8 2012
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