Saddled with results of ANC action

THE letter by councillor Rory Riordan, “Metro millions spent unnecessarily” (February 14), refers. I couldn’t agree more with the statement made in this respect, however, not on the basis that Riordan is attempting to pass the buck.

Trevor Harper’s appointment was made during the tenure of the ANC as the governing party.

Irregular expenditure is at an all-time high of R11.5-billion as stated in the financial figures of the NMBM and indeed the auditor-general’s report in this respect.

This figure alone is enough to make one sit upright, as one should.

However, these figures must be contextualised and apportioned to the responsible parties, and Riordan and the ANC are unable to simply wash their hands of a situation of their own doing.

Allow me to state the reasons for these concerning figures.

First, the bulk of irregular expenditure stated is as a result of what is referred to as limitation of scope on files within the supply chain procedures.

What this means is that tender files are incomplete with incomplete documentation contained therein to verify the scope and/or requirements of various contracts held with suppliers to the NMBM.

This has resulted in numerous open-ended contracts with suppliers.

The risk of abuse of such contracts is enormous and, indeed, millions of rands have been lost as a result of uncompetitive awards made.

It is unfortunate that Harper was unable to address this situation in his tenure, and it stands to reason that he and Riordan had the responsibility to mitigate these losses.

Second, the amendment of the ATTP scheme to a basis of unverified recipients drawing benefits has resulted in a massive financial strain on the institution.

This is simply because the process was amended without proper quantification of its effect on this institution.

The amendment of this policy was done on the brink of the elections and without providing council with correct calculations.

Third, the long service bonus of employees was implemented and contractually agreed to, again without any quantification of its effect on the financial position of this institution by the previous government.

This has resulted in council incurring an additional R700-million in expenditure.

No actuarial report was prepared to properly inform council as to the effects this contract would have on its financial position.

This is to mention but a few historical matters this coalition government is saddled with as a direct result of the actions of the ANC, Riordan providing the political leadership to the budget and treasury directorate, and Harper.

The coalition government is dealing decisively with all of these matters.

The open-ended contracts have all been suspended save for matters which cannot be done without crippling the operation of the institution.

All other limitation of scope matters are being dealt with in a manner agreed to by the national Treasury and will be removed from the irregular expenditure register of the NMBM while enforcing proper consequence management against those responsible.

The ATTP policy has been reviewed and quantified to benefit deserving recipients in a financially responsible manner.

With respect to bonuses, this institution has no other option than to honour the contracts the previous government entered into without proper foresight.

Despite all of the above, Riordan vehemently continues to defend Harper.

This begs the question: did Harper provide Riordan with the necessary advice and he simply elected to ignore this advice, or can the mistakes be laid squarely at the door of Harper?

The facts, however, shall show that our finances have significantly improved over the last 16 months.

Morne Steyn, DA councillor and chairperson of the unauthorised, irregular or fruitless and wasteful expenditure subcommittee, NMBM