KwaDukuza municipality’s tendencies to not follow proper tender bidding processes has come under the national spotlight.
The inability to follow supply chain rules has landed KDM a dubious spot in the top three KZN municipalities that together had over R1 billion in irregular spending last year.
Last week, auditor-general Kimi Makwetu released the country’s municipal audit outcomes for the 2016/17 financial year revealing that out of the country’s 257 municipalities, only 33 (13 percent) managed to receive a clean audit.
Along with an unqualified report, KDM was in hot water for findings of non-compliance with key legislation, which points directly to processes not being followed in recording payments, as well as tender applications.
Also read: Nothing for mahhala in KwaDukuza
Together with Ethekwini Metro and Umzinyathi, the district municipality has been cited as one of three municipalities in KZN which were liable for 41 percent of the total irregular expenditure incurred in 2016-17.
R513 million of the R1 billion was incurred by Ethekwini Metro.
In KDM alone, irregular expenditure has been a consistent downfall with the amount increasing in the last three years from R86m in 2014/2015 to R247m in 2016/2017.
KDM media liaison Sipho Mkhize said this problem was mainly related to multi-year construction contracts.
“We are committed to addressing shortcomings highlighted by the report and have among other measures committed to monitor and improve internal controls to address gaps in internal controls, financial management.”
Mkhize said KDM will be focusing on identifying and addressing gaps and strengthening supply chain processes.
“The work is already in progress and is monitored at the Good Governance Portfolio Committee which sits monthly.”
DA caucus leader Madhun Sing said the report called for the council to go back to basics. He said there was a blatant abuse of power within the municipality.
Also read: KDM underspend on key projects
“It has been discovered that processes are not fair, equitable and transparent. A full-scale investigation must be carried out against blatant abuse of power and disregard for supply chain management regulations.”
He said that not enough was being done.
“The bulk of it is attributed to turnkey projects that do not apply to supply chain management policy. This practice must stop immediately, procurement of goods and services must be in compliance with legislation. Disciplinary action and consequence management must apply to officials found wanting.”
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