DA calls for SIU investigation into Nala Municipality, FS
4 March 2015
The DA will today write to President Jacob Zuma requesting him to launch a Special Investigating Unit (SIU) probe into the Nala Municipality in the Free State.
Nala Municipality has been plagued by financial maladministration, corruption, mismanagement and has experienced an almost complete shut-down of all basic services over the past 3 years.
According to the Auditor-General's (A-G) latest financial management report for Nala Municipality, the state of the Municipality is in desperate need of intervention.
The A-G found that Municipal Management did not have documented policies and procedures to guide the operations of the Municipality, resulting in numerous instances of non-compliance with the Municipal Finance Management Act (MFMA).
Unauthorised, irregular and fruitless and wasteful expenditure amounted to just over R24 million during the 2013/14 financial year. This was not investigated to determine if any person is liable for the expenditure. In addition, it appears that no effort was made to recover the amounts.
Other damning findings by the A-G include the following:
The backlog in the provision of sanitation will not be eradicated in 2014/15;
The backlog in the provision of water will not be eradicated in 2014/15;
The Municipality underspent the Municipal Infrastructure Grant funding on roads infrastructure by R3,1 million;
Whilst a fraud prevention plan was developed, as required by legislation, the plan was not implemented during the year under review;
The verification process for new appointments did not always take place or did not cover criminal record checks, citizenship verifications, financial record checks, qualification verifications or reference checks;
Job descriptions did not exist for each post or group of posts; and
The municipality operated three waste disposal sites without a waste management license or permit.
This is not the first time that this Municipality has had a dark cloud hang over it.
In 2013 Public Protector, Thuli Madonsela found:
A R70 million flush toilet system which was not connected even though the contractor had been paid;
A contractor had been paid for unfinished houses in Maranatha to the tune of R2.8 million;
A report by KPMG detailing problems in the Municipality was not tabled timeously in council after it was received in 2010. In 2011, only the executive summary was tabled, which meant the Municipality did not have enough information to work on;
There were "manipulation of supply chain processes" and "abuse of process";
Poor communication between the Mayor and Municipality culminated in protests; and
A sewage plant was incomplete and non-operational because of maladministration.
The reports by KPMG, the Public Protector and the A-G found that the Municipality was acting in contravention of the MFMA and the Constitution. Little or no action has been taken against those responsible.
The President must at once launch an investigation. Political office-bearers and municipal officials must be held to account and where possible all funds must be recovered.
Statement issued by Kevin Mileham MP, DA Shadow Minister of Cooperative Governance and Traditional Affairs, March 4 2015
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