The Herald (South Africa)

Metro back on Kabuso trail

- Johnnie Isaac

THE Nelson Mandela Bay Municipali­ty is to institute a forensic probe into money paid to housing contractor­s on behalf of Bhisho in an attempt to recoup tens of millions of rands owed by the provincial government.

The fund works like a credit facility and is used to pay contractor­s while the municipali­ty waits for payment from Bhisho.

At the end of June, the housing revolving fund stood at R194.39-million.

The metro had locked horns with Bhisho a number of times over the years as the provincial Department of Human Settlement­s refused to pay back some of the money it owed the metro because of missing documents and projects it had not approved.

The province also complained about houses not built to proper specificat­ions.

Mayor Athol Trollip said on Sunday the previous administra­tion had acted carelessly with public money.

“The implementa­tion of informal systems such as this was done to allow money to move quickly through the metro coffers to its detriment and at the expense of proper service delivery.”

The housing revolving fund has, however, also grown under the current administra­tion – the last report to the budget and treasury committee highlighte­d that the amount owed to the municipali­ty had risen from R177.94million to R194.39-million between June last year and June this year.

Trollip said: “To determine the exact amount owing, forensic experts will focus on [four] key areas;

“It will need to be establishe­d whether a service level agreement exists between the metro and the province, and that it contains clear roles and responsibi­lities for both spheres of government;

“A comparison of actual cost versus committed cost of approved housing projects, checking alignment with the subsidy paid by the province;

“All related systems and processes, document management and internal controls will be fully assessed; and

“Recommenda­tions will be made to deal with housing delivery challenges using proper and approved accounting systems.”

Trollip’s chief of staff, Kristoff Adelbert, said the current administra­tion wanted to avoid making the same mistakes as its predecesso­rs and that payments from other spheres of government occur when they are meant to.

Provincial Human Settlement­s spokesman Lwandile Sicwetsha said the department could only comment if the city raised this matter with it.

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