Latest news with #MunicipalFinanceManagementAct
IOL News
11 hours ago
- Business
- IOL News
Witness in Zandile Gumede trial prefers waste pile over irregular expenditure
Former mayor of eThekwini, Zandile Gumede, with her supporters outside the Durban High Court. Image: Nomonde Zondi In the R320 million Durban Solid Waste (DSW) tender fraud case involving former eThekwini municipality mayor Zandile Gumede, a State witness has told the Durban High Court that she would prefer not to have a pile of rubbish picked up than to deal with irregular expenses for not following due process. The witness, who cannot be named as per court order, is currently being cross-examined by advocate Jimmy Howse SC, who is counsel for Sandile Ngcobo, a fifth accused who was a deputy head of supply chain management (SCM) in eThekwini. Gumede, Ngcobo, and 20 others are facing numerous charges, including money laundering, racketeering, fraud, corruption, and contravention of the Municipal Finance Management Act and the Municipal Systems Act relating to the tender. The witness told the court that waste collection is not an emergency, but a critical service. The court has heard that the Durban Solid Waste Unit had sought authority in December 2017 to get experienced service providers to collect waste from January 2018. This is because the contract of service providers was going to expire on December 31, 2017. In November 2017, the unit advertised a tender for waste collection, but they claimed that they received a lot of submissions and needed extra time to go through all of the proposals.. The witness during this time worked at the tenders and contracts unit. Part of her job included issuing letters of award to those who had won tenders. She said that after the Bid Adjudication Committee (BAC) gave the DSW the go-ahead to get service providers and approved the quotations, that decision needed to be reviewed by the Executive Acquisitions Committee (EAC), which was established by former city manager Sipho Nzuza to advice him. The BAC-approved quotations are subject to compliance checks, and then letters of appointment will be issued to the service providers. Howse asked her if it made sense that the EAC had to consider this on January 29, 2018, when the service providers should start collecting waste on January 1, 2018. The witness said that had she been instructed to do otherwise, she would have. "I was following due processes," she said. Howse asked her if she had approached any of her supervisors to tell them that there were not going to be waste management services in January, considering the email that was sent by a DSW contract administrator stating that this was an emergency. She said no and added that this was not the only contract she was dealing with. Additionally, Howse asked her if the SCM policy had any distinction between critical and emergency. She said it was her view that this was not an emergency and she continued to refer to SCM policies. She said the DSW Unit had a sole mandate to ensure contracts for waste management and illegal dumping. 'Failure to have those contracts does not result in an emergency. That is a failure to properly plan. In my view, Mr Howse, this was not an emergency,' she said. On December 28, 2018, the witness said Ngcobo had asked her to prepare the letters of award for the contractors, who were going to collect waste in January 2018. Howse said this was after his client received a call from the city manager enquiring about the letters of award.
The Citizen
a day ago
- Politics
- The Citizen
Is the ANC to blame for a negative perception of its officials?
ANCYL SG claims deployees are often stigmatised because of their political affiliation. The ANC Youth League (ANCYL) has defended the deployment of ANC-aligned professionals into critical public service positions, but claims they are often victimised. The organisation's secretary-general, Mntwoxolo Ngudle, said deployees are often judged because of their political affiliation. 'The African National Congress Youth League (ANCYL) notes with concern the growing trend of public discourse that seeks to stigmatise and delegitimise the deployment of highly qualified ANC-aligned professionals to public institutions. 'It is disheartening that individuals who possess the highest forms of academic and professional qualifications, some holding doctorates and years of industry experience, are dismissed solely because of their affiliation with the ANC,' he said. He said casting aspersions on ANC-aligned professionals is a blow to the country's transformation agenda and the need for equality. 'We reject the narrow narrative that presumes any ANC member appointed to a position of responsibility is there by virtue of patronage rather than merit. 'This weaponisation of public opinion against ANC deployees is a calculated political attack designed to weaken the ANC's influence in key institutions of development,' he claimed. ALSO READ: 'Political gaslighting': Will Lesufi really fire corrupt officials? The analyst explains why there is a negative perception However, political analyst Ntsikelelo Breakfast told The Citizen that the ANC is to blame for the negative perception that the public has about the party. 'The ANC has displayed a culture of not caring for its people, let's be honest. 'Most municipalities are failing to comply with the Municipal Finance Management Act. Public officials are doing business with the municipalities that they work for, that is an 'I don't care attitude,'' he said. Breakfast said there is evidence that the ANC has used jobs in the public sector to reward certain individuals close to the executive. 'The problem is the ANC has been using the public service as a terrain of accumulation, but also as a terrain to dish out favours to some of their henchmen. 'When a president is elected, or even in regional politics, whoever ascends the state machinery will be used to dish out favours to those people who assisted,' he said. Appointments in the DA-run municipalities DA spokesperson Willie Aucamp said the party has always ensured that professionals in the administration of the municipalities they run are appointed on merit. 'We do not apply cadre deployment at all, we believe that the most competent person must be appointed to a position. 'The fact that you are a member of a political party should not play a role in your appointment whatsoever,' he said. However, the party said the law does allow it to appoint its members to political office. 'Political office is exactly what it says that is political office. With a political appointment, it is connected to the term of that elected person, and when that person is removed, the other positions attached to this also end,' he said. NOW READ: Mbalula: It is very painful to see your own comrades being arrested
IOL News
2 days ago
- Business
- IOL News
MEC Rodgers to implement Cash Management System (CMS) for municipal financial stability
KwaZulu-Natal Finance MEC Francois Rodgers. Image: KZN Treasury Facebook FINANCE MEC Francois Rodgers is o a campaign to ensure that municipalities in the province are financially stable and capable of delivering services to their communities. The Department pff Finance announced on Monday that starting in June until December 2025, MEC Rodgers will lead the implementation of a Cash Management System (CMS) at seven municipalities in KZN. One of the municipalities set to benefit from this initiative is the Impendle Local Municipality. It was revealed recently that the municipality failed to pay wages and benefits in full and on time. This situation has raised alarm among employees, who are concerned about the impact on their livelihoods and the municipality's ability to manage its financial obligations effectively. The CMS aims to resolve a myriad of financial management challenges at the local government level, including: Implementation of debt collection and credit control policies. Overspending. Management and utilisation of conditional grants. Ultimately, the department said, CMS aims to improve service delivery, ensure timely payments to service providers, and reduce budget deficits at the local government level, among other initiatives. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ It said this week, MEC Rodgers will convene a high-level gathering involving Mayors, Municipal Managers, Chief Financial Officers, and Project Champions. The targeted municipalities for the implementation of the CMS are: Ugu District. Richmond. uMngeni. Nkandla. iMpendle. uMfolozi. Ulundi. KZN Treasury is constitutionally mandated to monitor as well as support the financial functions at municipalities. The seven municipalities were identified as potential beneficiaries for the CMS after assessments by the KZN system may be extended to other municipalities based on assessments. MEC Rodgers stated: 'KZN Treasury is empowered by section 5 of the Municipal Finance Management Act (MFMA) to perform oversight, monitor the financial functions, as well as to provide technical support and guidance to assist municipalities by instilling effective financial management practices.' 'The team at KZN Treasury and I are determined to act in accordance with our constitutional obligations so that we may succeed in the mission to establish an ethical and capable state. Municipalities are the closest sphere of government to communities. KZN Treasury is determined to empower and create capacity at municipalities as part of its mandate,' he added. THE MERCURY
IOL News
4 days ago
- Politics
- IOL News
Inside the R320 million fraud case against Zandile Gumede: Court updates and revelations
Former eThekwini mayor Zandile Gumede and her spokesperson Siphelele Jiyane. Image: Tumi Pakkies / Independent Newspapers The Durban High Court earlier this week ruled in favour of Zandile Gumede, the former mayor of eThekwini Municipality, and her co-accused, ordering the State to reveal a report from the municipality claiming that the company that looked into the R320 million tender irregularities was unlawfully appointed. Gumede and her 21 co-accused are facing numerous charges, including money laundering, racketeering, fraud, corruption, and contravention of the Municipal Finance Management Act and the Municipal Systems Act, relating to the R320 million Durban Solid Waste (DSW) tender. Integrity Forensic Solutions (IFS), a forensic company contracted by eThekwini's City Integrity and Investigations Unit (CIIU), looked into irregularities in the tender. This is after the CIIU received anonymous documents alleging irregularities in the solid waste tender. After IFS investigated, the Hawks took over the matter, leading to arrests. The court in 2024 was told that there was an investigation by the city to probe the appointment of IFS. The city hired Masama Consulting to investigate. As a result of that investigation, the CIIU's top investigator was fired. He is considered a key witness in the corruption trial Counsel for Gumede, advocate Jay Naidoo SC, made an application to the court asking for it to compel the State to make the Masama report available. Naidoo said he wanted to open his cross-examination with the former CIIU boss to question him about the appointment of IFS. In delivering her ruling, Judge Sharmaine Balton ordered the State to provide the applicant (Gumede) with the file opened and registered with the CIIU, pursuant to a 'whistle-blower' report dated May 9, 2023, about allegations of irregularities committed by the former boss of CIIU and top investigator, in the appointment of IFS, to conduct the forensic investigation in the matter. Judge Balton said this included, among other things, a whistle-blower report dated May 9, 2023, the forensic investigation report, together with all annexures compiled by Masama Consulting (mostly referred to as the Masama report), and the CIIU recommendations on actions to be taken. The judge ruled that a copy of the agenda, minutes of the meeting, and resolutions of the Executive Committee and the full council of eThekwini Municipality about the Masama report must be made available to the defence. Additionally, she said a copy of the record of the disciplinary proceedings instituted against the CIIU's top investigator by the municipality should be made available to the defence. She said a charge sheet served on the CIIU investigator and the outcome of the disciplinary tribunal must be given to the defence. 'The respondent (State) is directed to provide the information to the applicant (Gumede) within 10 days of this order,' she said. Additionally, the defence started its cross-examination of a State witness who worked for the tenders and contracts unit in eThekwini. The witness said she was part of the Executive Acquisitions Committee (EAC), an advisory committee that was established by former city manager Sipho Nzuza. She told the court that, given the urgency of getting contractors to collect waste in the city, Nzuza was well within his rights to require the former deputy head of Supply Chain Management, Sandile Ngcobo, to sign the letters of award on December 28, 2017. The court learned that the contracts of service providers who were collecting waste around the city were going to expire on December 31, 2017. The Solid Waste Unit requested permission from the Bid Adjudicating Committee (BAC) to hire qualified service providers to collect waste. This comes after it was unable to complete the bidding procedures in time due to the large number of bidders it received for the November tender. On December 19, 2017, the BAC approved quotations for the companies. The witness did not, however, bring the BAC's decisions to the December 21, 2017, EAC meeting. She explained that it was because she had been off since December 20. She also mentioned that the BAC had authorised the quotations, but with a need that compliance checks to be performed. Following protocol, she had also stated that the EAC's agenda had been set days in advance. The trial continues [email protected]
IOL News
4 days ago
- IOL News
Urgent tender processes revealed in Zandile Gumede's corruption trial
Former mayor of eThekwini Municipality Zandile Gumede and her sister in-law, Zano Maphumulo. Image: Nomonde Zondi The 14-day cooling-off period did not apply when the eThekwini Municipality awarded the R320 million Durban Solid Waste (DSW) tender in December 2017 due to a deviation from standard tender procedures, a State witness told the Durban High Court on Friday. This is because Section 36 of the Supply Chain Management policy had to be put into effect at this time, and the municipality needed to urgently get service providers to collect waste. The State witness, who cannot be named as per a court order, said this during her cross-examination with defence counsel, Advocate Credo Mlaba. Mlaba is counsel for former city manager Sipho Nzuza, who is the third accused in the matter. Nzuza and former mayor of eThekwini Municipality Zandile Gumede are charged with 20 others for money laundering, racketeering, fraud, corruption, and contravention of the Municipal Finance Management Act and the Municipal Systems Act relating to the DSW R320 million tender. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ Earlier this week, the witness who worked for the tenders and contracts unit within the municipality told the court that she was forced to issue letters of award to service providers to collect waste without allowing the 14-day cooling-off period. She said she was forced to break internal controls by issuing letters of appointment to companies that had been recommended to collect waste without Nzuza's signature. The court has heard that due to the urgency of the matter, the Solid Waste Unit had gone to the Bid Adjudication Committee (BAC) to ask for authority to source quotations from experienced service providers to collect waste in the city. This is because the contracts of the current service providers at the time were expiring on December 31, 2017. This came after the unit received a lot of bidders in November for this tender and realised that they were not going to finalise the process on time. Additionally, counsel for the fifth accused, Sandile Ngcobo, advocate Jimmy Howse SC, started his cross-examination and referred the witness to a transcript of a BAC meeting on December 19, 2017. The witness attended this meeting. He asked her if Ngcobo was referring to the Solid Waste Unit when he said the compliance checks for the service providers need to be thoroughly done. 'That is correct, Mr Howse. He instructed at the meeting,' she said. The witness also agreed with Howse that Ngcobo said the Solid Waste Unit could get any service provider as long as they were experienced. The court has heard that compliance checks were not done. Additionally, the matter had to be adjourned early as one of the accused, Bhekokwakhe Phewa, was sick. The matter was adjourned until Monday.
