Red flags in A-G report showcase issues in J.B. Marks Municipality
According to the Auditor-General (A-G) report of the 2022/23 financial year, the J.B. Marks Municipality incurred R5,9 million worth of fruitless and wasteful expenditure in the 2022/23 financial year. That adds to the cumulative figure of R83 million not accounted for.
The J.B. Marks Municipality’s woes regarding fruitless and wasteful expenditure and irregular expenditure were just some of the red flags under the spotlight during a recent Municipal Public Accounts Committee (MPAC) meeting at the Mabida Banquet Hall on Thursday, 7 March.
The J.B. Marks Municipality incurred R5,9 million worth of fruitless and wasteful expenditure in the 2022/23 financial year. That adds to the cumulative figure of R83 million not accounted for.
Those who attended were left startled at the facts and figures in the A-G report.
Even more disconcerting was that the municipal manager, Kgomotso Kumbe, stated that the council had not received fruitless and wasteful expenditure reports. He could not say why this was so but said it was part of a culture that had to change.
Section 125 of the Municipal Finance Management Act (MFMA) states that irregular, fruitless or wasteful expenditure must serve before the council as a compulsory disclosure.
The A-G also hammered on the irregular expenditure of R3,458,403,532 that contravened the supply chain management requirements.
The municipality incurred an unauthorised expenditure of R33,208,916 in the 22/23 financial year, while R865 million is yet to be dealt with per section 32 of the MFMA.
“J.B. Marks did not take reasonable steps to prevent irregular expenditure, as required by section 62(1)(d) of the MFMA,” stated the A-G report.
Likewise, the A-G report also specifies the lack of consequence management. Numerous cases of unauthorised, irregular, fruitless, and wasteful expenditure the municipality had incurred were not investigated.
The J.B. Marks Local Municipality’s overtime policy, which Kumbe described as a “legacy issue”, also came under the spotlight. He stated the municipality had never previously prescribed this policy, but it needed correction, especially with the staggering amount of R82 million for overtime expenses.
The AG audit also identified various material irregularities relating to the pollution and degradation of the Ventersdorp waste treatment works and pump stations, the inadequate safeguarding of sports complexes (Sarafina and Ventersdorp) and the flood line canal projects next to the N12 and Ikageng Extension 11.
During the meeting, Natasja Barends, a Promosa resident, stated that J.B. Marks failed the community with basic services.
“You are playing with our people. It is like you want us to die. There is such a big issue of non-compliance,” she added.
According to the Freedom Front Plus councillor in the J.B. Marks Municipality, Ian de Villiers, R898 million of the total budget of R2.2 billion can be attributed to unauthorised, irregular, wasteful and fruitless expenditure.
“I don’t know if it’s gross negligence or deliberate negligence. Ultimately, there must be consequences for this sort of expenditure, which contravenes the MFMA,” he declared.
He added that according to the MFMA, eight per cent of the value of existing assets should be used to maintain them. A lack of maintenance has had a massive impact on service delivery.
“This is not something I see included in any budgets or adjusted budgets,” he said.
The DA caucus leader in the J.B. Marks municipality, Johni Steenkamp, also said she would draft a letter to determine why reports were not tabled in council.
