KwaDukuza CFO placed on precautionary suspension over bank charges
While no missing funds have been reported, concerns have been raised about the substantial costs incurred by the municipality.
KwaDukuza chief financial officer Shamir Rajcoomar has been placed on precautionary suspension following queries about the use of multiple municipal bank accounts.
Officially, the investigation is into “allegations of financial misconduct by chief financial officer with regards to irregular, fruitless and wasteful expenditure to First National Bank charges.”
It is understood that no funds are alleged to have gone missing, rather that the use of multiple accounts to process payments is costing the municipality unnecessary money on associated bank fees.
The total charges amount could not be confirmed at time of print, but municipal sources allege that over R1-million of ratepayer funds has already been spent on the investigation, which far outweighs the charges.
According to the KwaDukuza Municipality (KDM) annual report for 2021/22, the municipality operates 52 separate bank accounts.
The concerns were first raised during an in-committee item in Council last month, after which Rajcoomar was officially suspended at a special council meeting, also in-committee, last week.
It is understood that no formal charges have been laid against him yet, but that they will be later this month should the investigation warrant it.
Municipal sources who spoke to the Courier on condition of anonymity, said the issue had previously been raised by the Municipal Public Accounts Committee (MPAC) in 2017 and 2018, but no action was taken.
Current KwaDukuza mayor Lindile Nhaca chaired MPAC at the time.
Rajcoomar has been employed in an acting and later permanent capacity with the municipality since 2006, per Courier records.
In his 17 year tenure, KDM has improved its financial status from near insolvency to becoming KwaZulu-Natal’s most sustainable municipality.
It is unclear to what extent municipal finance processes will be affected during his suspension.
As reported by the Courier last week, multiple business units have raised concerns about staffing capacity with the increase in pressure associated with over R1.2-billion in flood repair funding which needs to be managed.
KDM confirmed that Rajcoomar remains an employee of the municipality but did not respond to further queries.
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