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Inxuba Yethemba CFO must be suspended pending an internal investigation

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Dear MyPE

The Democratic Alliance (DA) has requested that the Chief Financial Officer (CFO) of the Inxuba Yethemba Local Municipality (IYLM) be suspended. The CFO was appointed despite a directive from the Eastern Cape Department of Cooperative Governance and Traditional Affairs (CoGTA), ordering that the post be re-advertised.

The then acting Municipal Manager appointed the CFO, Lucky Mulaudzi, in February 2017, but added a proviso that the appointment is subject to obtaining a letter of concurrence from the then EC MEC for CoGTA, Fikile Xasa.

The DA has, on numerous occasions, requested that the MEC’s letter of concurrence regarding Mulaudzi’s appointment be presented to Council, but to date this has not taken place.

In a recent answer to a parliamentary question, the incumbent MEC for CoGTA, Xolile Nqatha, confirmed that Council was advised in 2017 to re-advertise the post.

Despite this, the former Mayor of IYLM, Cllr Ray Shweni, advised that Mulaudzi be appointed. Following the former mayor’s proposal, Mulaudzi’s appointment was then pushed through Council.

Mulaudzi has proved himself to be utterly incompetent for the position. Under his watch, the outstanding Eskom debt has increased from roughly R36 million in 2017 to more than R150 million.

Since 2017 he has also been paid an annual salary of about R1,2 million, which can be deemed as unauthorised, irregular and fruitless and wasteful expenditure as Mulaudzi has failed to execute his fiduciary duties, at the expense of service delivery.

I have submitted a motion without notice to the offices of the acting Speaker and Chief Whip of Council, requesting that the appointment of the CFO must be discussed at the next council meeting.

The DA believes that the continued presence of Mulaudzi as CFO, and currently also as acting Municipal Manager, is compromising the administration and exposing the Municipality to adverse risk.

An adjustments budget was tabled at the special council meeting on 30 September 2020. This adjustments budget will be open to legal challenge as the CFO was unlawfully appointed.

We have recommended in the Motion that Council institutes an urgent internal investigation into the Budget and Treasury Office (BTO), that has been managed by the CFO since February 2017. Mulaudzi must be suspended pending the outcome of this urgent investigation.

The people residing in the IYLM are fed-up with the corruption and maladministration that has brought the Municipality to its knees and yesterday, 30 September 2020, marched to the municipal administration buildings in Cradock to demand that all official and politicians accused of corruption, be removed from office.

The DA in Inxuba Yethemba is committed to fighting corruption, speeding up basic service delivery and creating an open society for all.

Regards

Cllr Monde Desha
DA Inxuba Yethemba Caucus Leader

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