CoGTA MEC Xolile Nqatha will tomorrow, 28 June 2022 engage the leadership of Nelson Mandela Bay Metro on financial irregularities emanating from the audit outcomes released by the Auditor General (AG) recently. The visit is part of his Province wide engagement sessions with the leadership of District and Metro Municipalities. The first leg of his sessions started in Buffalo City Metro on 15 June 2022.

Municipalities in the Province have been incurring unauthorised, irregular, fruitless and wasteful expenditure (UIFWE) with Nelson Mandela and Buffalo City Metropolitan Municipalities leading on irregular expenditure with R19,2billion and R2,6 billion respectively.

Invitations for the engagement sessions are extended to Executive Mayors, Chairpersons of Municipal Public Accounts Committees (MPACs), Members of Mayoral Committees (MMCs) for Finance (Budget and Treasury Offices) and Engineering Services (Infrastructure and Technical Services).

“My brief is to engage our leadership on their plans to attend to matters of UIFWE as well as non-spending on conditional grants. We are mandated by the Constitution to monitor support and strengthen the capacity of municipalities to manage their own affairs, to exercise their powers and perform their functions,” said MEC Nqatha.

The Municipal Finance Management Act (MFMA) requires that the Municipal Manager (MM) must promptly inform the Executive Mayor, the MEC for local government and the AG in writing about any UIFWE incurred by a municipality and whether any person responsible is under investigation for such.

The Act further stipulates the steps that have been taken to either recover, rectify and prevent a recurrence of such financial irregularities.

MEC Nqatha said the AG has highlighted that most municipalities in the Province have not taken reasonable steps to prevent and avoid the escalating UIFWE and no consequence management has been initiated by municipalities.

“Our focus is on strengthening the capacity of MPAC and support staff so that the requirements of the MFMA are adhered to and that investigations on financial irregularities are conducted and followed by consequence management,” said MEC Nqatha.

He added that Eastern Cape has also been identified as not spending on its Conditional Grants (CG) as stipulated on Division of Revenue Act (DoRA) hence millions of rands get returned to the National Treasury every year.

Flowing from the engagement sessions, pledges will be signed between CoGTA, Provincial Treasury (PT) and municipal leadership to monitor progress on a quarterly basis, thus attend to the root causes of not spending on CG and possible solutions to be implemented, said MEC Nqatha.

Issued by Cogta EC. For Enquires please contact: Mamnkeli Ngam on 071 685 7981 or Makhaya Komisa on 066 381 8259