Earlier this week the DA said it was in possession of a leaked draught management letter from the Auditor General’s office alleging the misuse of funds. The report claimed a sixth of the city’s operating budget was spent on contracts illegally entered into, the opposition party claimed on Tuesday. The amount included R2.38 billion of irregular expenditure the city failed to disclose that was only discovered during the audit, DA mayoral candidate Solly Msimanga told a media briefing in Pretoria on Tuesday.
The controversial PEU prepaid metering contract was part of this amount. Msimanga said the auditor-general’s (AG) management report relating to Tshwane’s 2014/15 financial statements was mistakenly handed out to the city’s municipal public accounts committee on which the party has representation.
The management report is a more comprehensive report of the AG’s findings and not meant to be made public. Msimanga also claimed the AG was in breach of the Municipal Finance Management Act (MFMA) for failure to provide reasons for a delay in the signing of the City of Tshwane’s audit report for 2014/15. This was the result of political pressure in the form of “negotiations” with the city’s political leadership, who were trying to avert a qualified report, or even a disclaimer, he said.