Johnny b goode
December 2011, when Douglas was the municipal manager, includes a number of damning allegations against him, such as failing to exercise oversight and proper control over expenditure and financial management. The AG questions his leadership and cites incidents of noncompliance with procurement laws and other legislation. In the report, the AG stated that the accounting officer “did not take reasonable steps to prevent unauthorised, irregular and fruitless and wasteful expenditure”, and in terms of procurement and contract management, the AG stated that “awards were made to suppliers who did not submit a declaration on their employment by the state or their relationship to a person employed by the state as per the requirements”. The big payout:
It is alleged that Douglas received a massive payout of unauthorised back pay amounting to R58 912 as well as a prorata performance bonus to an amount of R54 491 when his contract was terminated in August 2011. The total of these unauthorised payments amounts to R113 403.
According to Susan Campbell of the Knysna Ratepayers Assosiation (KRA), an extract from the annual financial statements of the municipality shows that Douglas was paid R1 078 822 for the financial year of 2011/2012. She alleges that this is the year that Douglas worked only 31 days.
Douglas was asked to clarify how much he was paid out, when he received it and to provide a breakdown of the payout, as well as offer an explanation on what legal grounds he was entitled to be paid out a performance bonus and back pay for the period August 2011 until December 2011 when he was no longer working at the municipality. The Senza saga:
The debacle that just won’t go away – millions of rands in loss suffered by the municipality as a result of unpaid debt accrued by Senza Restaurant after a contract between it and the municipality was signed under Douglas’ watch. Campbell alleges that this could be a direct result of negligence on the part of highranking municipal officials, when Douglas was MM, in that many of the conditions in the tender agreement were not complied with. “No financial information was provided, no tax clearance certificate was provided, procurement legislation was not complied with and the permission of council was not obtained,” states Campbell, and alleges that Douglas and his colleagues’ conduct contravened the Municipal Finance Management Act in many respects, which she claims in some instances ‘’could amount to a financial crime’’.
Recently a new tender for Senza was advertised again under Douglas’ watch. This time, the tender signed by Douglas was advertised for a 20-year lease agreement, but according to the official records of a council resolution, only a nine-year lease has actually been approved. Asked to clarify the matter, the municipality responded: “The term (20 years) is not in line with the council resolution. The acting municipal manager will investigate and address the matter with the relevant department.” Knysna Lifestyle Estate:
In December 2009, council approved the subdivision of Erf 8577 subject to a number of conditions. Condition (i) provided for *GAP housing, and condition (ii) specified that an agreement had to be entered into with council about the phasing in of GAP housing prior to endorsement of the subdivision plan.
Douglas informed the applicants of the decision on 15 December 2009 and on 25 February 2010, he allegedly endorsed the subdivision plan without complying with the conditions according to a member of the KRA.
Douglas was sent a list of questions relating to all allegations mentioned above, and was asked to comment on the Auditor General’s report, Knysna Lifestyle Estate, Senza and the payout he received during his previous term. No comment was received at the time of going to press.
* GAP housing can be defined as the creation and promotion by the government of housing opportunities, in partnership with the private sector, for people earning a combined monthly income between R3 501 and R18 000. These are the income earners who earn too much to get a free house from the government and earn too little to get a bank bond.