Amathole probe into irregular expenditure

THE Amathole district municipality is investigating five transactions amounting to a combined R41 000, of which R11 000 was spent at a popular East London seaside restaurant.

The money was spent without proper procurement processes being followed.

This is but a drop in the ocean compared with other projects that have landed numerous officials in hot water.

These include two contracts for the purchase of corporate uniforms, trophies and photo frames, valued at a combined R205 568. The implicated officials are facing an internal disciplinary hearing.

The transactions form part of irregular expenditure amounting to hundreds of thousands of rands identified by auditor-general (AG) Kimi Makwetu’s office.

The transactions were made in the 2014-15 financial year.

Information on them is contained in a confidential Amathole council report tabled at a council meeting on August 23 2016 by municipal manager Chris Magwangqana.

According to Magwangqana’s report, amounts of R3 531 and R7 293, in two transactions, were paid to the East London restaurant for “catering services”, without other businesses being given an opportunity to tender for such services.

ADM spokesman Siyabulela Makunga had not responded to questions at the time of going to print yesterday, while Magwangqana could not be reached.

In the report, Magwangqana said such expenditure would be investigated because “no evidence could be provided to the AG that the procurement process of requesting three quotations was followed in procuring these catering services”.

“This matter is still under investigation and feedback will be provided at the next council meeting,” stated Magwangqana.

He said other transactions being investigated by the council related to companies that were given work and paid by ADM, despite not being registered on the district’s database of service providers.

According to Magwangqana’s report, an R88 091 tender to procure corporate uniforms for ADM staff “was deliberately split to circumvent the formal procurement process by utilising the three-quotation system”.

The uniform tender was split between three companies, with each of them pocketing just more than R29 000 in the process.

Any contract issued by any state organ which is below R30 000 in value, can be awarded through a three-quotation system, while anything above that amount must go through a formal tendering process.

Four more invoices, valued at a combined R117 477, were “deliberately split” and payment made to four companies for the procurement of trophies, photo frames and engraving services.

Each of those firms received just under R30 000, with Magwangqana revealing that “disciplinary action has not been concluded against those responsible for such transactions”. —