Cogta, DWS select committee wants action on missing Bojanala R84m

The Select Committee on Cooperative Governance and Traditional Affairs (Cogta), and Department of Water and Sanitation (DWS) instructed the North West provincial government and the Bojanala district municipality to investigate and institute consequences against the people who were involved in the “accidental” Bojanala transfer of millions of rand.

R134 million was deposited by error into the Bojanala district municipality’s account on 4 March 2019, after which R84 million disappeared without a trace.

Mr China Dodovu, the chairperson of the committee, said in a statement that it was unacceptable that assurance processes within the provincial Cogta did not pick up the “erroneous” transfer to Bojanala before it happened.

“Municipal oversight mechanisms seem to have failed, as they did not pick up the issue timeously, and the Municipal Public Accounts Committee will only sit this Friday to look into the matter” said Dodovu.

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“It is also concerning that the mayor did not receive Municipal Finance Management Act (MFMA) Section 71 reports on the state of [the] municipality’s finances from February to October 2019. We cannot accept the simple explanation that it was human error, without adequate consequence management.” he said.

Dodovu welcomed the suspension of the municipal manager and chief financial officer.

“We urge the speedy completion of an internal investigation and implementation of recommendations. The committee has also emphasised the need for a criminal investigation into the matter,” said Dodovu.

Dodovu said that the committee finds it unacceptable that the Department of Cooperative Governance, Human Settlements and Traditional Leaders transferred funds to Bojanala without gazetting the transfer, as per the Division of Revenue Act principles.

“The committee instructed the provincial Department of Finance to ensure adherence to all legal frameworks before any transfers are made,” he said.

Dodovu said the committee was displeased that the City of Johannesburg failed to honour the initial meeting called in November 2019 regarding the city’s irregular expenditure.

“Despite this, the committee welcomes a council resolution to form a full-time sub-committee to deal with the alarming R12 billion in unauthorised, irregular, fruitless and wasteful (UIFW) expenditure in 2018/19.

The committee further welcomes that investigations into R8.2 billion of the value of the UIFW have been completed, leading to the dismissal of 41 officials.

The committee also “welcomes the establishment of an Operation Clean Audit steering committee to monitor and hold management accountable on all control deficiencies”.

Dodovu said the committee will  monitor the municipalities that are among the five highest contributors to UIFW expenditure with the aim of finding lasting solutions to this problem.

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