With the intervention period coming to an end, it also could mean that Mr Theo van Vuuren, the man who took over the administration 21 months ago, will soon bid the municipality farewell. Van Vuuren was appointed on April 23, 2013 to steer the sinking municipality to calmer waters.
Mpumalanga Premier, Mr DD Mabuza, visited the municipality last week and was not satisfied with the audit outcome.
“The financial and systemic problems experienced by the municipality over the past five years again contributed greatly towards a third consecutive negative outcome of the annual audit. It was especially the procedural and record keeping systems, inability to produce substantiating documents on many transactions, asset management and supply chain issues which led to the Auditor General’s findings,” Van Vuuren said.
“This came as a deep disappointment to the Council, Province and the intervention team, who implemented various actions over the past year to improve compliance and financial management,” he said.
Mr Zibonele Mncwango, spokesperson for the office of the premier, said it remains a provincial priority that the municipality should move out of the Section 139 intervention as soon as possible and the premier urged all parties to work together to achieve a sustainable municipality with full service delivery to all.
Although the main focus of the intervention on improved service delivery as well as strengthening its capacities the municipality is making good progress, the persistence of negative findings of insufficient controls and application thereof, confirm that the sustainability of the municipality remains suspect.
This called for a more forceful approach by the intervention team supported by the provincial government, to focus more attention on the underlying causes of these audit findings. Within the municipality disciplinary action against close to 40 staff members in four directorates is being finalised, redeployment of 12 staff members from non-performing areas are done while the strengthening of capacity on asset management and revenue enhancement are also been finalised as part of the recently finalised new organisational structure.
A member of the intervention team, Mr Nora Mthembu, has been appointed as acting chief financial officer after the chief financial officer, Mr Ben Dorfling, went on leave on January 14 and it was announced shortly afterwards that he will be leaving the municipality permanently on January 31.
“Mr Dorfling parted ways with the municipality after serving just short of two years as chief financial officer. He joined the municipality in the midst of its worst financial and service delivery crisis, early in 2013 and was instrumental in developing a financial recovery strategy, stabilising finances and especially clamping down on illegal electricity connections. The severity of the challenges facing his finance directorate, the security situation and the fast pace and volatility of the operating demands, took its toll and for most of 2014 he has experienced increasing health problems.
“In the interest of the municipality and himself, a mutual beneficial agreement was reached earlier this month enabling him to leave the employ of the municipality,” Van Vuuren said.
Another interesting appointment is that of a deputy administrator that has also been added to the intervention team. Mr Eric Nkumane will be tasked to specifically focus on infrastructure and service delivery. Nkumane was the Administrator at Bushbuck Ridge for the past 20 months, and as engineer he will bring vast experience to the municipality. The Technical Directorate will specifically be guided by him.
This Van Vuuren said will allow him to have more capacity for audit reforms and strategic management. An intensified audit remedial plan has already been developed and on Thursday, January 22 Council will also debate and further guide interventions in this respect. This will be followed by a further review and guidance by the Provincial Government on Friday, January 23. Both the Provincial Departments of Cooperative Governance and Finance have moved closer to the municipal team and are providing direct support to pull the municipality through this final hurdle on its path of recovery.
To ensure that the gains made the past 21 months are retained and further improvements are made, especially in respect of acceleration of service delivery and to move towards a clean audit, the strengthening of the intervention team by the Department of Co-operative Governance and Traditional Affairs in Mpumalanga was also approved and has become effective immediately. This adds to important changes being introduced and actions approved by the Administrator over the past month.
These include the retaining of Mr Ben Botes as engineer and acting Head of Department for Water. He will also be responsible for the management of Witbank Dam and provide mentorship, advice and technical services to the directorate.
Mrs Nomkita Fani was appointed as new Executive Director Development Planning. She is specifically tasked to streamline the land use approval processes and to address the planning and land use needs of the vast informal settlements.
Mr Elija Shongwe, tasked to establish and operationalise a new directorate and especially to introduce clean city programmes and alternative waste management, was appointed as acting Executive Director Waste and Environmental Management.
Mr Kobus Tenner was appointed on a contract basis with the exclusive focus on establishment of a system and data base and steering the clean-up programme on illegal land uses.
The finance directorate will be strengthened to focus on supply chain management, debtors and creditors. To add to this in the approved new organogram especially revenue, technical services and asset management, are being strengthen. The position of Chief Internal Auditor, to strengthen the audit process and to promote internal controls and efficiencies, will be advertised within this month, as this is a serious gap in municipal functioning.
Residents will sigh with relief to know that it was also decided that all water and sanitation capital projects will be transferred to Rand Water for execution to improve efficiencies.
The good news does not stop there. Tenders to increase municipal water supply efficiency with an additional capacity of 20%, which will resolve the long outstanding problems affecting Tasbet Park extensions and KwaGuqa and Empumulweni, as well as a pothole repair programme for a further 20 000m² will be finalised soon. Clean-up and rehabilitation programmes have been launched and are gaining momentum.
Staff found guilty of various issues relating to the audit outcome as well as fraud and corruption, will face the wrath of the law when disciplinary actions will be initiated.
Lastly Van Vuuren also indicated that both security contracts are being reviewed in respect of effectiveness and current demands.
