Probe finds R14m in irregular spending

LOCAL Government, Environmental Affairs and Development Planning MEC Anton Bredell says a forensic investigation into allegations of fraud, corruption and financial misconduct in the Kannaland Municipality has found more than R14 million in irregular expenditure.

A progress report from a forensic investigation into the allegations in the Kannaland Municipality was tabled to the Kannaland council on Friday.

This after the Kannaland mayor, acting with the support of mayco members, requested a forensic investigation into several concerns. The investigation by the Western Cape government’s Forensic Services unit commenced in January.

The initial investigation involved the alleged irregular appointment of at least five service providers who ostensibly rendered various services to the Kannaland Municipality between 2011 and last year.

“The investigation has found that the majority of these purported appointments were irregularly made by deviating from the normal, competitive procurement process and without following the required supply chain management prescripts. It was further revealed that some of the actual services rendered by these service providers are questionable and did not result in value for money. The investigation concluded that the irregular appointments and subsequent payments to these service providers resulted in possible irregular expenditure amounting to R14 741 584.06,” Bredell said.

It had been recommended that disciplinary action be instituted against those officials who were still employed by the municipality, and that possible criminal offences be reported to the police for further investigation, Bredell added.

The head of department of local government in the Western Cape, Graham Paulse, said various contraventions of the Municipal Finance Management Act, 2003, Municipal Supply Chain Management Regulations, 2005 and the Supply Chain Management Policy by four municipal officials had been identified.

“In some of these instances, the investigation identified that some of these officials might have committed acts of financial misconduct and other statutory offences contained in the act,” said Paulse.