City to fork out almost R1m for investigation

IT will cost Nelson Mandela Bay Municipality close to R1-million for a forensic firm to probe allegations of tender and payment irregularities in the public health department.

This figure could escalate should the matter eventually end up in court.

In city manager Johann Mettler’s report requesting approval to deviate from the municipality’s tender processes, he said auditing firm Pricewaterhouse Coopers was hired to lead the probe into Milongani Eco Consulting.

Officials from the public health department are accused of making irregular payments to Milongani.

Four senior managers have since been suspended by the metro.

Mettler’s report, which was served before the mayoral committee yesterday, states: “Due to allegations of critical evidence and information being destroyed to cover irregular payments to a service provider, Milongani, the city manager instructed that an immediate confiscation be made to secure municipal equipment and documents within the public health department.

“At least nine computers and documents were uplifted by PWC with the intention of . . . obtaining the evidence to be used in the investigation.

“Due to the sensitivity of the matter and urgent action to be taken . . . it would not be in the interest of the NMBM to advertise the terms of reference in the public domain. Hence, the call for a deviation from normal supply chain management processes.”

Pwc estimated its services would cost about R847 422, excluding VAT and disbursements.

Mettler’s report said it was anticipated that the investigation would result in criminal prosecutions.

“Due to the uncertain nature of court cases, it is difficult to provide accurate time and cost projections,” it said.

“In consultation with the director of internal audit [Bonnie Chan], PwC will advise further . . . which may require a further extension of services.”