The DA in Mpumalanga has written to the MEC of Finance, Nompumelelo Hlophe to institute an investigation into City of Mbombela officials who failed to declare their private and business interests in contracts awarded by the municipality.
A year ago, the Auditor General (AG) indicated that the municipality contravened the Supply Chain Management regulations as individuals in the service of the municipality failed to disclose external business interests beyond their employment contracts.
The Supply Chain Management (SCM) handbook states that officials from the unit must recognize and disclose any conflict of interest that may arise. These officials may not not use their position for private gain or to improperly benefit another person.
Financial records show that the municipality incurred over R50 million in irregular expenditure. The majority of this irregular expenditure was due to non-compliance with Supply Chain Management regulations.
The ANC administration needs to understand that in any sphere of government Supply Chain Management is critical for good governance and service delivery. It also has a direct impact on audit outcomes and residents as consumers of government services.
The City of Mbombela are participants of the Supply Chain Management forum, facilitated by national governance. This forum provides officials in the Supply Chain Management sector with the necessary skills and training. Therefore, the municipality’s conduct is alarming.
The municipality’s MPAC division has very little in dealing with financial misconduct in this municipality. The mismanagement of funds and contravening Supply Chain Management cannot go unpunished. The DA reiterates that taxpayers money is not for self enrichment.
As an entity responsible for enhancing fiscal discipline, accountability and sound governance in Municipal Finance Management Act (MFMA), we anticipate the Provincial Treasury to act on the AG’s findings and hold implicated officials to account.
We will make sure that officials implicated in the contravening Supply Chain Management regulations are held accountable. Residents cannot be deprived of services because of unruly officials who acted impropriety.