Durban — The eThekwini Municipality has revealed that it would strengthen key budget and internal controls in its plan to combat unauthorised, irregular, fruitless, and wasteful (UIFW) expenditure when it tabled its Municipal Public Accounts Committee (MPAC) reports. The reports were tabled during the recent council meeting.
In a statement, the eThekwini Municipality said it remained steadfast in its commitment to clean governance, transparent financial management, and efficient service delivery.
The City said: “This dedication is evident in the recent MPAC reports tabled at the council meeting on June 28, continuing virtually from the session on June 25.
“Both reports highlight the necessity for stringent oversight and corrective measures to prevent future irregularities and ensure responsible fiscal management.”
To address UIFW expenditure, the City has developed and adopted a comprehensive UIFW reduction strategy aligned with National Treasury MFMA Circular No 111.
This strategy focuses on reducing irregular expenditure through a series of key interventions:
- Automating the contract management cycle.
- Enhancing procurement planning.
- Implementing compliance checklists.
- Conducting thorough demand analysis.
- Strengthening key budget and internal controls.
Furthermore, these measures were being diligently implemented by various municipal structures, including the council, MPAC, the Financial Misconduct Board, audit and executive committee.
These bodies ensure that goods and services have been delivered as specified before processing any related expenditure.
The first report tabled by the deputy chairperson, Conrad Dlamini, was an analysis of the MPAC first report: Analysis of UIFW expenditure.
It provided a detailed analysis of UIFW expenditure across multiple financial years.
The report outlined the deviations from the Supply Chain Management (SCM) policy, the reasons for these deviations, and the expenditure value.
Among the key findings was that irregular, fruitless, and wasteful expenditures totalling R24.8 million that should be certified as irrecoverable and written off.
Another was that recoverable expenditure of about R734 000 should be recovered from relevant or former officials and service providers. The second report focused on UIFW expenditure from July 2023 to March 2024.
The auditor-general identified non-compliance with Regulation 8(1) and (2) of the Preferential Procurement Regulations (PPR) 2017, with 85 contracts awarded in contravention of local content provisions, totalling R931.3 million.
The committee recommended a write-off of R931.3m with the matter submitted for consequence management processes, according to the council policy on financial misconduct.
Chairperson of the governance committee, Nkosenhle Madlala, welcomed the report saying that the municipality takes consequence management seriously and was making substantial progress in this area.
“The Independent Financial Misconduct Board is fully functional and actively processing matters.
“Priority is given to current issues to ensure timely and effective resolution.
“The City’s zero-tolerance approach towards fraud and corruption ensures that any detected instances are promptly addressed in line with applicable laws and policies,” Madlala said.
The municipality’s efforts to strengthen governance and financial management practices demonstrate a commitment to promoting transparency and accountability, Madlala said.
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