Independents Ken Clark resigns from EMLM finance committee

Councillor slams management for lack of oversight

Independent councillor Ken Clark has resigned from Enoch Mgijima Local Municipality (EMLM) finance standing committee (FSC) due to a lack of oversight over the top management of the municipality.

Clark claimed that no progress had been made towards the financial recovery plan (FRP) and that revenue collection had not improved.

He said the FRP was nothing more than words on paper.

Clark’s resignation was prompted by not only a lack of accountability from senior management and offending officials but by a spike in the municipal Eskom bill from R702m to R1,275bn since he joined the council.

In his resignation letter, directed to budget and treasury portfolio head and FSC chair Unathi Galada, he wrote: “This is an increase in R573m in 35 months and an increase of in the last three months has been R97,6m.

“I have called for disciplinary action to be taken against offending officials, to achieve a turnaround in the financial position of the municipality and appealed to the FSC to bring this serious lack of corporate governance to the attention of the council.’’

Clark said he had on two previous occasions handed Galada letters about the situation but his calls and concerns were not heeded nor sent to the council for discussion or consideration.

Clark said despite electricity meter installations being implemented, people still used illegal connections.

“Everybody knows what the problems are at the municipality. They have not been collecting revenue, we have increased our debt by R97m in the last three months. Nothing is being done because those are the people that vote for them.”

Clark said one of the contributing factors hampering the finances of the municipality was the overpaying of salaries at an incorrect sub-scale which EMLM cabinet representative Dr Monde Tom had brought to light.

“The financial recovery plan is just a piece of paper. There are no actions or decisions in council to give effect to it.”

He pointed out that the monthly financial reports reflected the problem that was not being dealt, adding that the CFO and the municipal manager, as the chief accounting officers, needed to take responsibility for the financial problems at the municipality.

On Tuesday, Clark said he spoke to the auditor general’s team in the community services offices, where he had advised them to conduct a report on the projects not acted on.

He concluded by saying the public needed to ask how long Eskom was going to continue to supply electricity when it was not being paid and what would happen if they woke up and found the power utility had terminated the municipal power supply.

EMLM spokesperson Lonwabo Kowa said the behaviour and conduct of senior managers was subject to statutory regulation, and disciplinary actions can only be initiated in the event of transgressions.

“The municipal finance systems adhere to accounting standards, which are used to enhance revenue.

“Comments made by a councillor during a meeting do not constitute a recommendation. It is the collective body that has the authority to make recommendations and resolutions,” Kowa said.