Ratepayer bodies in the eThekwini Municipality said they were inundated with concerns about the municipality’s R1.1 billion write-off concerning irregular expenditure. 

The municipality clarified that the decision was made in strict accordance with the Municipal Finance Management Act (MFMA) and relevant guidelines.

The municipality emphasised that this expenditure did not result from fraud, corruption, or financial loss to the municipality.

Instead, it stemmed from procedural oversights, such as bid documents not specifying local production and content requirements for designated sectors.

The expenditure is being written off on the basis that goods or services were received or value for money received.

The municipality explained that the irregular expenditure in question primarily arose from technical non-compliance with local content provisions in certain contracts awarded through legitimate public tender processes. 

“It should be noted that for irregular expenditure, the municipality follows its consequence management processes in holding those responsible for incurring irregular expenditure accountable. In the 2024/25 financial year, the municipality investigated 19 cases of irregular expenditure,” the municipality stated. 

It stated that it has taken disciplinary action against employees identified in the City Integrity and Investigations Directorate (CIIU) reports.

This includes employees receiving a final written warning, suspension without pay, and being fined. Two employees also resigned. These actions were processed through appropriate internal structures, including the Financial Misconduct Board and the Municipal Public Accounts Committee, following applicable laws and policies.

The municipality further explained that the write-off forms part of the municipality’s broader strategy to strengthen financial governance, improve compliance, and maintain a transparent and accountable financial environment. 

The municipality stated that it has structures such as the Audit Committee, Executive Committee, and Council that continue to play a critical role in overseeing the implementation of the Irregular Expenditure Reduction Strategy.

RATEPAYERS

Asad Gaffar, eThekwini Ratepayers Protest Movement (ERPM), said the word wasteful expenditure should raise eyebrows. 

“We have been highlighting poor governance and also calling for a change in administration in eThekwini. We believe this is not political but administrative, and the correct people need to be appointed in certain key positions,” he said. 

Allison Schoeman, the chairperson of the eThekwini United Ratepayers, Business and Civics Organisation (EURBCO), stated that it was inconceivable that such an astronomical amount could be brushed aside as a mere “procedural oversight” while residents and businesses buckle under the weight of daily financial struggles.

“Businesses are closing their doors because they cannot keep up with the burden of rising municipal bills. Unemployment continues to climb. Pensioners, who have worked their entire lives to contribute to this city, now face indignities that no elder should endure,” she said. 

Schoeman said that final warnings, token suspensions, and quiet resignations behind closed doors are not the accountability our democracy demands.

She felt that parliamentarians and political leaders had failed to grasp the obvious truth: fixing municipalities is the key to fixing the country.

She also felt that if they were to restore local government to its core function as a service delivery vehicle, investors would regain confidence, jobs would be created, and the economy could begin to recover.

“Every municipal employee — from the top official to the newest recruit — must be held to strict performance standards, with real consequences for failure,” she said.

Schoeman said that EURBCO stands with every resident and ratepayer who says: ‘No more.’ 

“We cannot, and will not, accept that billions can be written off without meaningful accountability while our communities sink deeper into hardship. The time has come for residents to rise, for ratepayers to unite, and for citizens to demand the removal of politicians who fail to protect our interests,” she said.

zainul.dawood@inl.co.za

Source link