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‘Human Errors’ costs ratepayers millions

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Dear MyPE

The Deputy Mayor of Buffalo City Metropolitan Municipality, Cllr Matana, responded to a presentation conducted by the Auditor General, stating that council should look into the findings and advice given by the Auditor General after the 2015/2016 audit.

This is a very contradictory statement, since during the public debates of the local government elections, the ANC mayor at the time, Cllr Mtsi was clear in his debates that unauthorised and wasteful expenditure was not a major concern in BCMM, but rather a consequence of human error.

These “human errors” that were stated, have cost the metro millions in wasted funds, which could have been used to fund other projects to ensure better service delivery.

The Auditor General’s findings:

  • Irregular expenditure for the 2015/16 financial year is at R199 million, although a slight downward trend, it is still too high.
  • BCMM continues to incur irregular expenditure and is not dealing with the identified irregular expenditure.
  • Unauthorised expenditure for the 2015/16 financial year amounts to R22 million.
  • Increased deviations are a major cause of unauthorised expenditure, which is due to a lack of planning and alignment between directorates.
  • Inability to collect billed revenue.
  • Depreciation and impairment cost being above budgeted amounts.
  • Ineffective and inefficiency at Supply Chain Management (SCM) lead to uncompetitive or unfair procurement processes, inadequate contract management, inefficient record keeping and lack of adequate systems in place.

The DA notes with concern the findings of the AG and ask for:

  • An internal investigation into the SCM department.
  • Open the tender processes to ensure transparency
  • E-procurement and Electronic Data Management Systems (EDMS) to be implemented and continuously monitored.
  • A skills audit of employees to ensure a proper alignment of the organogram.
  • Proper performance management systems for employees
  • Consequence Management policy to be in place, which must be communicated to unions and employees.
  • Internal task team(s) set up to deal with contract and project management.

The finance portfolio head needs to be experienced and knowledgeable in finances to ensure that municipal officials report accurately on financial matters in the Metro.

The DA calls on the Municipal Manager and the Executive Mayor to respond to the findings of the AG to ensure an accountable and a financially sound Metro.

Regards

Chantel King

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Port Elizabethan

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