Procurement stopped

EMFULENI: CONCERNS MOVE WILL COLLAPSE SERVICE DELIVERY

Moratorium comes two months after suspension of CFO.

Embattled Emfuleni municipality in Gauteng has placed a moratorium on all procurement – except for emergency procurement subject to approval – in what has been seen as the first signs of financial troubles.

Concerns are that the moratorium will collapse service delivery in the cash-strapped municipality and evidence that the suspension of chief financial officer Andile Dyakala has been detrimental to stability.

According to an internal memo, dated 13 May, 2022, from municipal manager Lucky Leseane addressed to all managers and executive directors, “all procurement activities will seize (sic) with immediate effect and only emergency procurement will be considered on request and approval of the accounting officer”.

The freezing of procurement comes hardly two months after Dyakala was placed precautionary suspension, days after blowing the whistle on a R57 million dodgy insurance contract.

According to information from those close to the process, the moratorium is also an indication that funds have been depleted and admission to financial mismanagement. “In essence they have used money for noncore services… they are insolvent.

They financially mismanaged the municipal finances within two months after suspending CFO,” said an official, who cannot be named for fear of reprisal.

The Citizen has previously reported how Dyakala was placed on suspension barely a week after he had written to the auditor-general’s office alleging corruption against Leseane and requesting that an investigation be instituted into his role in the awarding of the municipality’s R57 million insurance brokerage contract.

In the letter – dated 8 March – addressed to the auditor-general’s Gauteng senior manager, Nerosen Venketsamy, Dyakala detailed how the awarding of the contract – with a monthly broker fee of R1.6 million – was fraudulent and reeked of bribery and corruption.

The official claimed Emfuleni had also hurriedly appointed a security company at an inflated cost of R250 million.

Dyakala has claimed he was suspended for a faction of the ANC in the region to access funds for the upcoming regional elective conference.

Municipal spokesperson Makhosonke Sangweni confirmed the moratorium but said service delivery will not be affected and that projects that need to be adjudicated will continue. “We have budget management and monitoring committee established by council,” he said.

“The decision was taken by the committee... taking into account the Municipal Finance Management Act circular requires us to reduce cost that are unnecessary.” –