Eastern Cape municipality caught up in huge R67 million scandal

Revelations of irregular expenditure by Alfred Nzo District Municipality in the Eastern Cape have surfaced. These have raised serious concerns about financial mismanagement and lack of proper procurement procedures within the municipality.

According to the Public Service Commission (PSC), the municipality paid a staggering R67 million to a fleet services company in 2015 without a formal agreement in place.

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It was only this year, eight years later, that a contract was finally signed

The Municipal Public Accounts Committee (MPAC) flagged these irregularities in its audit report, stating that the principles outlined in the Municipal Supply Chain Management Regulations were not followed in the execution of the contract.

The MPAC report revealed that the total assets acquired through this deal only amount to R34 million, meaning that R33 million of municipal funds were used irregularly.

Simthembile Madikizela, an EFF member in the Eastern Cape Provincial Legislature and a member of the Portfolio Committee on cooperative governance and traditional affairs, brought this report to the attention of the PSC.

This demonstrates the importance of oversight and accountability mechanisms within local government structures.

The implications of this irregular expenditure are significant.

Not only does it raise questions about the financial management practices of the municipality, but it also highlights the potential for corruption and misappropriation of public funds.

“The need for the intervention of the Public Service Commission is brought about by the need for individuals who were implicated in this matter to be held accountable,” said Madikizela.


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