Little success in war against fraud
Councillors demand answers after bleak picture emerges of municipality failing to act
THE Nelson Mandela Bay Municipality has failed to implement strategies to combat fraud and corruption in the past year, with councillors alarmed at the lack of progress in finalising forensic investigations.
In the 2015-16 auditor-general report for the municipality, officials revealed that since 2011 attempts to conduct anti-fraud and anti-corruption strategy meetings had failed.
The failure to finalise forensic investigations was also linked to staff shortages in the Internal Audit and Risk Assurance department.
Councillors yesterday demanded at a municipal public accounts committee (MPAC) meeting a full report on what has been done by the city to implement the anti-fraud and anticorruption strategy.
They also want an update on all current forensic investigations.
A section titled “Internal Audit” in the auditor-general report painted a bleak picture, showing that for more than five years recommendations set out in investigations of fraud and corruption were not actioned.
“Former attempts to conduct antifraud and anti-corruption awareness programmes with the council were rendered fruitless, as scheduled awareness sessions were very poorly attended by political office bearers including MPAC members,” the report said.
“In one instance this municipality elected to settle with a service provider, despite the fact that the latter defrauded the council.
“The matter was reported to the police and it was about to be placed on the court roll for prosecution.
“But the criminal matter against the service provider was withdrawn without consulting the internal audit and risk assurance sub-directorate.”
Shocked by the report, DA councillor Charles Garai said the revelation by the department should be probed.
“This matter must be investigated – who authorised the withdrawal of the case and on what grounds?” Garai asked.
“Also, we need to know what this means. Recommendations are often implemented in a protracted manner. It is not clear to us,” he said.
City manager Johann Mettler said: “The committee has an oversight role and can make a recommendation to the council.
“The recommendation can state that the audit committee investigate this matter and give a full report to the council.”
In the report there were also concerns raised by the internal audit section on the continuous disregard of the Municipal Finance Management Act (MFMA) by the municipality.
“While Section 32 reports are drafted to identify and hold officials account- able for so-called irregular, fruitless and wasteful expenditure there has been little or no recourse regarding remedial action and financial recoveries as provided in the MFMA,” it said.
It also said recommendations on forensic investigations implicating senior municipal officials were not immediately implemented due to staff shortages in the department.
“Efforts to build and capacitate the limited forensic investigative functionality within the sub-directorate by means of filling permanent vacancies were not successful.”