Superspar Springbok - Nuwe dimensies
Superspar Springbok - Nuwe dimensies
Superspar Springbok - Nuwe dimensies
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DA's response to Public Protector's report on Midvaal<br />
Timothy Nast says remedial action already taken, some findings factually flawed<br />
The Democratic Alliance (DA) welcomes the finalisation of the Public Protector's report into various allegations leveled against the<br />
Midvaal municipality (see here - PDF).<br />
We note that the Public Protector could find no evidence of fraud or corruption. We note further that the municipality was exonerated<br />
in three key areas. The Public Protector found:<br />
There were no irregularities in the awarding of the paving tender for Loch Street in Meyerton;<br />
There was no evidence of maladministration in respect of debt collection practices; and<br />
There was no evidence to support the allegation that the municipality paid performance bonuses irregularly.<br />
However, the Public Protector did highlight instances of maladministration. In many of these instances, the municipality began taking remedial<br />
action as far back as 2006. In some cases, further remedial action is required. The municipality is fully committed to rectifying any mistakes that<br />
were made.<br />
What follows is a summary of each finding, the remedial action already underway and the action that we intend to initiate at the Public Protector's<br />
request.<br />
The appointment of Odendaal and Summerton Inc. to render legal services for the council<br />
The Public Protector finds correctly that proper procurement processes were not in place when the council was formed after the first democratic<br />
local government elections in 2000. This was before the promulgation of the Municipal Finance Management Act in 2004.<br />
The Public Protector acknowledges that by 2006 a "formally competitive" bidding process was initiated. Three firms competed for this tender. Out<br />
of the three, two did not tender for the full scope of the work and were therefore disqualified. The tender was duly awarded to Odendaal and<br />
Summerton Inc.<br />
In 2009, the municipality appointed a panel of attorneys to spread the council's legal services among a number of firms. The Public Protector<br />
acknowledges that the municipality has already taken these corrective measures.<br />
The Public Protector has further requested that the accounting officer submit a report to the Council within 60 days to, inter alia, investigate the<br />
conduct of the former accounting officer, chief financial officer and other officials involved. We will begin work on this report and make the report<br />
public in accordance with the Municipal Systems Act.<br />
The Public Protector raised concerns about a potential conflict of interest in respect of the service provider and has requested that we take<br />
appropriate steps to review this. We will do so.<br />
Whether Mr Odendaal benefited improperly from the sale of property to the council<br />
The Public Protector investigated a complaint that Mr Andre Odendaal allegedly benefited from the sale of property donated to the Council in<br />
2003.<br />
The municipality will report on any deficiencies in internal controls related to this matter, as requested by the Public Protector. It will also<br />
cooperate with the relevant law society and investigating body in this regard.<br />
However, it is unfortunate that there are some factual inaccuracies in the Public Protector's findings on this matter - despite the comprehensive<br />
submission sent to her office during the course of the investigation.<br />
The facts are as follows:<br />
The Executors of the late CCC Hennop wrote to the Council to offer the stand as a donation in lieu of outstanding rates. However, this offer did<br />
not meet the requirements of the donation policy of Council.<br />
At a later stage, the property was purchased by Mr Vaughn Summerton in the open market. The municipality had no involvement in this.<br />
The fact is that the Municipality did have procedures and controls in place to monitor transferred and donated properties. The internal auditors,<br />
CMS Incorporated, investigated this matter and confirmed that a separate register was kept and maintained for donated property.<br />
Furthermore, the Auditor-General has audited the records of assets and liabilities of the Council for all the financial years and gave positive<br />
reports on these.<br />
I have written to the Public Protector today to clarify the facts of this matter and to request that she adjusts her report accordingly.<br />
The removal of palm trees to the former mayor's residence<br />
The Public Protector investigated whether municipal equipment and resources were used to remove and transport palm trees to the house of the<br />
former mayor.<br />
It was found that, although the conduct of municipal officials was improper, the matter had been dealt with correctly in terms of the Code of<br />
Conduct for Councillors and that the investigation had correctly been reported to the then MEC for Local Government.<br />
Furthemore, the municipality was reimbursed for the expenditure.<br />
This matter has therefore been dealt with comprehensively in terms of the law.<br />
The failure to collect debt owed to the municipality by a prepaid electricity service provider<br />
The Public Protector investigated whether the municipality had failed to collect debt from a vendor contracted to sell pre-paid electricity on behalf<br />
of the municipality. It was found that the failure to collect this debt constituted maladministration.<br />
This finding regrettably ignores the remedial steps taken by the municipality to recover the outstanding amount. The municipality obtained a legal<br />
opinion to the effect that it would be fruitless to pursue the debt as the vendor was insolvent and all its members sequestrated. In other words, the<br />
cost to the public would have been greater than the amount that could be recovered. On this basis, the municipality's audit committee agreed that<br />
the debt should be written off. Criminal charges were then laid against the vendor.<br />
The Public Protector has requested that the municipality investigate allegations of misconduct against the officials involved. This will be duly<br />
complied with. We are confident it will reveal that the municipality acted in good faith based on legal advice.<br />
Conclusion<br />
No government is perfect. Good governments acknowledge this and strive towards the highest standards of financial management and service<br />
delivery. The Midvaal municipality has set the standard in Gauteng for good governance over the last ten years. This year, Midvaal received its<br />
8th unqualified audit from the Auditor-General and increased rates collection to 100%.<br />
In 2010, Midvaal was ranked number one in Gauteng in the annual ‗Quality of Life Survey.' It was also the only municipality in Gauteng where<br />
more than half (68%) of all residents reported they were either satisfied or very satisfied with their local government.<br />
We will continue setting the bar high in Midvaal. We will do this by taking the findings of the Public Protector seriously and implementing her<br />
recommendations. Doing so will help us to rectify any shortcomings and continue improving our systems to the benefit of every resident of<br />
Midvaal.<br />
We trust that the same standards will be monitored in municipalities throughout South Africa. (Timothy Nast, DA Mayor of Midvaal)<br />
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