Riordan remembers what he wants to remember
COUNCILLOR Rory Riordan appears to suffer from selective amnesia. His recent letter (“DA statement on NMBM not factual”, November 9) made a few points in rebuttal of DA leaders’ statements which I cannot allow him to duck and dive with denials.
He quotes, “Danny [Jordaan] and his predecessor diverted public funds for private gain. He [DA leader] does not address one line of evidence for this disgraceful allegation, which can thus only be described as disgusting.” Let me provide the evidence.
Around 2000 the metro invested public funds in a tyre company which promptly went bankrupt. Perhaps Riordan can explain the metro’s involvement in funding private enterprise, what our financial loss was and if the directors were ever investigated for their incompetence.
A second case is the failed Unique Mbane electrical automatic meter-reading (AMR) project. As the department’s ex-test room chief I objected to this as a waste of money and upon bumping a brick wall approached then councillor Andre Goosen (DA) with my concerns.
I ended by being boarded for stress.
This project was actively punted by then mayor Nceba Faku and Roland Williams.
My opposition to the AMR was based on the cost, a proprietary communication protocol creating a sole tender in perpetuity and meter reader retrenchment/ replacement by scarce skill technicians and auditors. I had rejected AMR some 10 years previously.
These allegations are confirmed in the Kabuso Report which describes the AMR project as “fruitless and wasteful expenditure”. This report passed by a judicial officer found three other “fruitless” projects with the comments that the then mayor should be charged.
I feel the link between the political players and a local family should have been investigated for metro capture.
Riordan is proud of the R1-billion he held in the bank. Let us consider what the Nersa inspectors found in 2013, which I copy directly below.
“The available staff was not adequate for proper execution of the electricity department’s duties as 40% of the approved positions were vacant;
“As part of the approval process for tariffs for the 2011-12 financial year, an above the guideline increase of 25.82% was approved to be used during the 2012-13 financial year for maintenance and refurbishment, and to ensure that the municipality puts appropriate measures in place to ensure an increase in its collection rate as well as a reduction in the non-technical losses due to illegal connections.
“No progress report or figures were available to explain the expenditure;
“The planned expenditure for maintenance is only 1.5% of the total planned expenditure for NMBMM.”
(Some 6% is the recommended standard. If underfunded by 5% for 20 years the maintenance backlog is 100% of the R4-billion I expect the electricity income to be this year. Talk about the DA inheriting a poisoned chalice.)
“Nelson Mandela Bay Metropolitan Municipality did not have adequate stock available in the stores with regard to certain regularly used commodities;
“A very good maintenance plan was available but was not fully implemented due to a shortage of human resources;
“Funds made available as part of the above-guideline increase in tariffs were not used for maintenance;
“The switching equipment was very old and obsolete and in some cases no spares were available for maintenance.” (The Walmer 17th Avenue intake substation blew up years ago and the temporary installation is holding using line switches. Not a long term solution.)
“The age of Deal Party and Toll Gate substations switchgear is of concern. The equipment was very old and obsolete, and could fail at any time with high risk of negative economic impact taking into account the industries supplied by these substations;
“Buildings need maintenance and repair.” (Deal Party.)
Riordan then claims that “strict debt control measures have always been in place”. Perhaps for the unanointed this was true, but in one instance when a senior treasury official refused to waive the charges incurred allegedly by a friend of the mayor, the official was driven out of his office in front of his staff.
This despite metro rules forbidding politicians interfering in the operation of the metro. I was ordered to bypass the revenue protection division in the case of an ANC councillor.
This would have cancelled penalties and fraud charges being raised for the councillor. Luckily the meter management software we developed in house triggered fraud alarms in IT and treasury, forcing the case to be opened.
A G Simpson, Lorraine, Port Elizabeth