Limpopo municipality overpays millions for non-functional boreholes

Limpopo district municipality is in trouble with the law after paying a service provider more than R1.8 million for equipping a single borehole that usually costs R500,000.

Now, the Mopani district municipality, which consists of five local municipalities under the Norman Mashabane ANC region, has to explain to cooperative governance, human settlements and traditional affairs department for failing to do things by the book.

According to a report by the municipal public accounts committee, the municipality has recently double-paid five service providers for equipping boreholes in villages hit by drought.

All the payments allegedly exceeded the normal ceiling price for equipping boreholes by more than R1 million.

The report circulated among councillors during a recent sitting showed some of the service providers submitted two invoices for a single borehole, charging R1 894 557 for one borehole. It was further discovered that in recent months, the district paid one service provider R1 009 565.17 for equipping a borehole that was not functional and did not produce a single drop of water since it was drilled.

The report further indicated that according to the auditor-general’s (AG) recent audit report, the municipality  incurred R921 894 889 in unwarranted expenditure. This and other irregularities, according to the AG’s report, resulted into the Mopani municipality performing dismally in the audit outcomes.

On Tuesday, the Democratic Alliance (DA) wrote to the cooperative governance department, asking the political head of the department to place the district under administration.

“We are very concerned about the out-of-control surge in unauthorised, irregular, fruitless and wasteful expenditure incurred by this municipality,” said DA Limpopo leader Jacques Smalle.

“Noncompliance with supply chain management policies is the biggest problem faced by Mopani. We want the cooperative governance department and the public protector to intervene immediately in order to prevent more rot
in this institution.”

Cooperative governance MEC Basikop Makamu said he was waiting for a report on the matter.

“The department will not tolerate an act of malfeasance, maladministration, fraud and corruption in its municipalities. I am waiting for that report,” he said.

“I want to know how much they charge for a borehole and if their pricing is above board. I also want to know the names of the companies that unduly benefitted. I will also want to know why the municipality paid so much for a single borehole and if they implemented consequence management.”

Mopani spokesperson Odas Ngobeni said the report by the municipal public accounts committee was receiving the attention it deserves.

“We are now in the process of implementing the recommendations,” he said.

“We have recently dismissed a deputy chief finance officer and we have an ongoing case against the supply chain manager. The expenditure manager has resigned while still undergoing disciplinary processes.”

Ngobeni admitted there were boreholes that are not operational for various reasons.

“Some of the reasons are around energising them by Eskom. So, it would be unfair to say we can’t pay a service provider, who has done work, while we wait for Eskom to energise them,” he said.

“We have also made progress in terms of audits. In 2015-16, we got an adverse audit with findings, 2016-17 a disclaimer and adverse in 2017-18, while we slightly improved last financial year in 2018-19 when we got a qualified audit opinion.”

He said the DA was “barking up the wrong tree” as they were working on the committee’s and AG recommendations.

“The DA cannot choose to grandstand on a matter that is already receiving attention.”

– news@citizen.co.za

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