EMLM faces Scopa probe after EC municipalities visit

Enoch Mgijima Local Municipality faces a probe from the national Standing Committee on Public Accounts (Scopa) pending allegations of a service provider appointed to perform VAT reconciliation receiving 25% of the refunds from SARS.

The percentage was considered too high by the committee.

Another big elephant in the room was the yellow plant fleet contract, costing the municipality R2.4m per month in spite of it not being fully utilised.

Scopa has requested the details of the service providers and those responsible for their appointments. The report was issued after the top municipal officials were invited to a Scopa meeting in East London on Wednesday.

The meeting, attended by Scopa chairperson Mkhuleko Hlengwa and cooperative governance and traditional affairs MEC Xolile Nqatha, was also attended by the mayor, Luleka Gubula, speaker Bongiwe van Heerden, municipal manager Nokuthula Zondani and CFO Paul Mahlasela.

This happened a few days after Scopa had announced in a press statement that the committee would visit certain Eastern Cape municipalities.

The investigation would also pry into the possible appointment of community service directors without meeting the minimum requirements. The unstable relations between the mayor and municipal manager were apparently also noted by Scopa. Both are crucial for the organisation’s stability and functionality.

The press statement issued by Scopa days before indicated that the oversight visit would follow up on the auditor-general’s audit outcome for the 2018/19 financial year and look at investigations conducted, including the Special Investigation Unit’s report.

The committee would also check the consequence management measures applied and whether there was sound financial management and accountability in the municipalities.

EMLM spokesperson Lonwabo Kowa said the visit targeted municipalities that were not financially viable, and were under government intervention.

“[Scopa looked into] audit outcomes, focusing mainly on unauthorised, wasteful, fruitless and irregular expenditure.

“The focus was not only on the previous financial year, but also on previous years and the VAT recovery.

“There is a VAT service provider appointed by EMLM.

“The nature of their work is operational and requires no council resolution.”

Other EC municipalities looked into included Buffalo City and Nelson Mandela Bay metros, Amathole and OR Tambo district municipalities and Enoch Mgijima and Makana local municipalities.