By Lungile Mxube
Dear Mr Kate
This letter is submitted to you on behalf of the Makana Citizens Front (MCF) and to you in your capacity as accounting officer of the municipality. The MCF is extremely concerned about the fourth disclaimer audit outcomes. The MCF wants to believe that you share the same extreme concerns.
The intention of this letter is not an attempt to criticize you at all. It is an attempt to help you to address and resolve the precarious state of financial management and overall governance problems at the municipality.
Before your appointment as Municipal Manager, the Auditor-General already had issued the fifth damning disclaimer audit opinions for the period 2018/2019, 2019/2020, 2020/2021, 2021/2022 to 2022/2023
against Makana Municipality.
In 2023, the MCF councillors who were unlawfully removed from Council, by the late Ayanda Kota, had constructively engaged the Mayor and particularly the Speaker about the governance weaknesses in the administration.
It is an unacceptable situation that cannot be left unquestioned. The MCF wants to believe that you will agree with this sentiment.
In a short space of time, the unlawfully removed MCF councillors quickly observed that the oversight duties and responsibilities of Council and the relevant portfolio committees were deliberately stifled by the Speaker, Mayor and Chairpersons of the portfolio committees.
In this regard, the Speaker’s attitude towards the unlawfully removed councillors was disturbing.
Nonetheless, the MCF wants to specifically draw your attention to the habitual findings listed below from the AGSAs 2022/2023 report.
In previous disclaimer audit findings, the AGSA found similar habitual
findings:
1. Makana Municipality has spent more than R21million on the use of consultants.
2. Slow response or lack of oversight.
3. Inadequate consequences.
4. Poor performance reports submitted.
5. Uncompetitive and unfair procurement.
6. Awards to close family members.
7. Inadequate contract management.
8. Unauthorised, irregular and/or fruitless and wasteful expenditure.
To the MCF and to other stakeholders and general communities, these findings are concerning because it is abundantly clear that Makana Municipality is not conducting its constitutional and legislated affairs in a
manner that is consistent with and compliant with the law.
There are strong views in the community and amongst stakeholders that corrupt activities are deeply rooted in the municipality.
The abovementioned findings on the use of consultants at exorbitant cost, awards to family members and inadequate contract management cannot be dismissed as “just normal issues” which can be attended to in the normal course of events.
For instance, in the MCF’s view, there is no justification to spend more than R21m on consultants.
There is no justification for the “lack of skills” as a reason for the “preparation or review of financial statements” and “asset management”.
Subsequently, the AGSA said: “The consultants were not effective due to the lack of records and documents.”
How is this expense justified? The responsible officials must be held accountable.
Furthermore, the AGSAs finding that tenders were awarded “to close family members” is a gross violation of law, is unethical and a grossly corrupt practice that cannot be left unquestioned and unchallenged.
There can be no excuse or justification for corrupt activities in the municipality.
Again, the MFC is emphasizing that the responsible officials must be held accountable.
The AGSA has already said that there are no consequences or there are “inadequate consequences” for the gross violations.
The MCF is highlighting these issues because this information is not published on the municipality’s website for everyone in the public to see and this information is not even brought to the attention of Ward Committee Meetings.
More concerning is the fact that the AGSA reports were not brought to the attention of the Municipal Public Accounts Committee (MPAC) for closer examination and resolution.
The MCF is not questioning your performance or your integrity at all.
However, in terms of Sections 60, 61, 62 and 63 of the Municipal Finance Management Act of 2003 (Responsibilities of Municipal Officials), the Municipal Manager is responsible for the conduct of managers who are accountable to the Municipal Manager.
Importantly, Local Government: Municipal Finance Management Act: Regulations: Financial Misconduct Procedures and Criminal Proceedings obligates the Municipal Manager to act against any official implicated in financial misconduct and, the Prevention and Combating of Corrupt Activities Act of 2004 requires the same obligation.
Without elaborating further on the state of governance at Makana Municipality, the MCF is requesting a meeting with you to discuss some of the concerns raised in this letter.
We want to see consequence management against this reckless, wasteful and fruitless expenditure again both municipal officials and Councillors implicated or involved in this.
The MCF is looking forward to hearing from you.
Please confirm receipt of this correspondence and should you require any further clarity, please do not hesitate to contact me at 083 643 64 05.
Should we not get a satisfactory response from you, we strictly reserve our rights to take further action.
Yours Sincerely
Cllr L Mxube
Makana Citizens Front (MCF) PR Councillor, Member of Infrastructure and Engineering Portfolio Committee, Member of Municipal Public Accounts Committee, MCF Party Leader and Chairman
