The Star Late Edition

Municipali­ties fail to act against VBS-linked bosses

- BALDWIN NDABA

SOME of the North West municipali­ties implicated in the VBS Mutual Bank scandal have ignored directives to act against their municipal managers and chief financial officers who invested millions into the controvers­ial bank without council approval.

The North West provincial government under Premier Job Mokgoro was now expecting a report from the MEC for Local Government Fenny Gaolaolwe about measures taken by the four municipali­ties to implement the recommenda­tions of the Sekela Xabanisa CA Inc, which produced a forensic report and recommende­d legal action against those involved in the saga.

Spokespers­on for the premier Vuyisile Ngesi said the provincial cabinet was due to sit before the end of the month and the VBS matter was one of the items on the agenda.

“The cabinet will be expecting a report from MEC Gaolaolwe on measures taken by the four municipali­ties against officials implicated in the report,” Ngesi said.

He said the cabinet would then decide on what action to take against the municipali­ties that had failed to implement recommenda­tions of the forensic report.

Only the Mahikeng Local Municipali­ty had suspended its municipal manager. Workers at the municipali­ty have for the past two months been engaged in a go-slow action, demanding the dismissal of those who invested R83 million with VBS.

Mahlakeng Mahlakeng, chairperso­n of the North West standing committee on public accounts (Scopa), confirmed that several municipali­ties had not complied with instructio­ns to lay criminal charges against those involved in the illegal investment­s with VBS.

TSHWANE city manager Dr Moeketsi Mosola rejected recommenda­tions from the clusters, among others, to allow the bidding process to appoint a competent service provider to render project management services.

The proposal came from department­s under the chief operations officer James Murphy, who is responsibl­e for implementa­tion under service delivery department­s, including Housing and Human Settlement­s, Roads and Transport and Utility Services.

The terms of reference for the tender included management, planning, implementa­tion and operation of the Integrated Public Transport Network, part of which is the A Re Yeng bus rapid transit system.

The city manager rejected the recommenda­tion and forged ahead with the procuremen­t of GladAfrica to the tune of R12 billion over three years.

Sources close to the procuremen­t process said Mosola was determined to go ahead with the procuremen­t of GladAfrica as far back as March 2017.

The interim report of a council-mandated investigat­ion by Bowmans – procured by Murphy as approved by council – has found that the city did not follow provisions of the Municipal Finance Management Act when it entered into the deal with GladAfrica, and thus implicated Mosola as accounting officer.

Bowmans recommende­d that a full investigat­ion be instituted as a matter of urgency. The scandal has since strained the relationsh­ip between Mosola and mayor Solly Msimanga.

At the Labour Court Mosola successful­ly interdicte­d Msimanga, council and speaker Katlego Mathebe from tabling the interim report to council last month.

He presented several arguments, including that Murphy was conflicted as he was part of the implementa­tion of the GladAfrica tender. He also questioned the lawfulness and independen­ce of the investigat­ion. The matter was postponed after Murphy intervened, concerned that Mosola had implicated him in the procuremen­t of GladAfrica.

Murphy’s interventi­on was to clear his name and drew attention of the Labour Court to the fact that Mosola had allegedly lied under oath by saying in his founding affidavit that the chief operations officer had played a role in the appointmen­t of GladAfrica.

Mosola’s lawyers asked for time to deal with the issues raised by Murphy and would do so by the end of this week.

 ?? OUPA MOKOENA ?? TSHWANE Executive mayor Solly Msimanga at the city’s showcase of the transparen­cy and fairness of the EPWP lottery recruitmen­t process. |African News Agency (ANA)
OUPA MOKOENA TSHWANE Executive mayor Solly Msimanga at the city’s showcase of the transparen­cy and fairness of the EPWP lottery recruitmen­t process. |African News Agency (ANA)
 ??  ?? TSHWANE city manager Dr Moeketsi Mosola rejected the recommenda­tion and forged ahead with the procuremen­t of GladAfrica to the tune of R12 billion over three years.
TSHWANE city manager Dr Moeketsi Mosola rejected the recommenda­tion and forged ahead with the procuremen­t of GladAfrica to the tune of R12 billion over three years.

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