Mayor turns to Treasury in council probe bid

Raymond Mhlaba focusing on MIG funded projects

RAYMOND Mhlaba executive mayor Bandile Ketelo has written to Finance Minister Malusi Gigaba asking for funds to conduct a forensic investigation into some municipal infrastructure grant (MIG) funded projects.

Ketelo said the Specialised Audit Services unit from National Treasury conducted a preliminary investigation into the projects, which were in Nkonkobe municipality before it was merged with Nxuba municipality to form Raymond Mhlaba.

“Upon the completion of the preliminary investigation, the report was tabled before the newly established Raymond Mhlaba local municipality [council] by the team from National Treasury on June 1,” Ketelo said. The projects include: ● The paving of a road in Gqumashe in Alice at R3.4-million;

● The construction of a chicken abattoir in Middledrift at R3.5-million. He said the chicken abattoir project has been in the construction phase for the past four years;

● Erection of high mast-lights in New Town and Hillside in Fort Beaufort at R4-million; and

● Paving of a road in Gugulethu, Middledrift at R5.2-million.

Treasury spokesman Mayihlome Tshwete could not be reached for comment yesterday to confirm whether they received the letter or not.

Ketelo confirmed writing the letter, which the Dispatch has seen.

Recommendations were that a comprehensive investigation be conducted to determine the reasons for non-compliance with the relevant supply chain management prescripts when procuring the paving material for the Gugulethu and Gqumashe access roads.

“A comprehensive investigation should be conducted on all contracts awarded to Huntshu, to determine whether the procurement processes were followed in their appointment.

“A reconciliation of payments made from each vote should be performed to determine the extent of the expenditure incurred for the four MIG projects tender review,” the letter said.

Ketelo copied the letter to cooperative governance and traditional affairs MEC Fikile Xasa.

His spokesman Mamnkeli Ngam said he would check if Xasa had received the letter and return the call. However, he had not done so at the time of writing.

The council resolved to request National Treasury to fund the forensic investigation as the municipality could not do so due to financial constraints.

The Dispatch reported in August that sources within the municipality had claimed that slain speaker Thozama Njobe had been fighting fraud and corruption.

Njobe was also key in making sure that National Treasury’s investigation report on the four projects in Nkonkobe local municipality was followed up. The four projects were incomplete although the total allocated funds were transferred to Nkonkobe municipality.

A confidential report seen by the Dispatch at the time revealed that the former Nkonkobe council was interfering with the implementation of the municipality’s capital projects. —