Municipality allegedly misspent millions of Covid-19 funds
Municipality allegedly misspent millions of Covid-19 funds
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“The JB Marks Local Municipality risks becoming the Covid-19 corruption poster child in North West and is showing contempt for the legislator,” says Freddy Sonakile, DA North West member of the Provincial Public Accounts Committee following a municipal presentation during a virtual Provincial Public Accounts Committee (PPAC) meeting on Wednesday (22 July) last week.
According to Sonakile, the municipality’s presentation was awash with contradictions, irregularities, and questions on Covid-19 expenditure that were answered unclearly and obscurely. The J.B. Marks report indicated expenditure to date of around R14 million, while Provincial Treasury indicated expenditure in J.B. Marks to the value of R47 million.
At the presentation, J.B. Marks introduced the company Batseba Holdings, as the contractors to supply sanitisers, masks, gloves, and face shields. The J.B. Marks municipality paid a contractor R742, 500.00 for 990 one-litre bottle sanitisers, which calculates to R750.00 per bottle. A different contractor was also contracted to supply sanitiser and invoiced the municipality R1,059,000.00 for 9020 bottles. This calculates to R117.00 per one-litre bottle.
According to Sonakile when pressed, the municipal delegation could not explain what the reasons were for contracting the more expensive contractor.
“The company does not form part of National Treasury’s Suppliers Database for Covid-19 related suppliers, which agreed to supply goods at negotiated prices,” he said.
All goods purchased from the contractor were facilitated under a deviation from supply chain processes under Treasury’s Emergency Procurement Covid-19 Regulations.
“In addition to the irregularities in the municipal report, the J.B. Marks municipal delegation showed contempt for the Legislator and the principles of accountability”, says Sonakile.
The committee was also made aware that the J.B. Marks Municipal Public Finance Committee (MPAC) has been kept in the dark on all Covid-19 related procurements despite MPAC requesting the information from the Municipal Manager.
According to Sonakile, the DA supports the decision of PPAC to report a case of contempt of the Legislature by the J.B. Marks municipal delegation, in line with the Standing Rules of the Legislature and the Powers, Privileges, and Immunities of Parliament and Legislatures Act. The Committee will also report the matter to the Police’s Special Investigating Unit (SIU) for further investigation.
“This is a test case for PPAC to demonstrate to the public that it takes matters of fraud and corruption seriously. It is encouraging that parties support efforts to restore accountability and transparency in governance-related matters”, says Sonakile.
North West municipalities are the worst-performing in the country as evidenced by the Auditor-General’s 2018/19 MFMA report.
The J.B. Marks municipality was approached for comment on Friday morning, but the Herald didn’t receive any feedback so far.