Latest news with #PublicAuditAct
IOL News
3 days ago
- Business
- IOL News
Auditor-General raises concern over governance failings in northern KZN municipality
KwaZulu-Natal MEC for Cogta Thulasizwe Buthelezi called to act on Umkhanyakude District Municipality Image: Supplied The Auditor-General of South Africa (AGSA), Tsakani Maluleke, formally instructed KwaZulu-Natal Cooperative Governance and Traditional Affairs (Cogta) MEC Reverend Thulasizwe Buthelezi to intervene in a northern KwaZulu-Natal municipality, citing serious governance and financial failings. The embattled uMkhanyakude District Municipality has come under renewed pressure after Cogta confirmed that the MEC had received formal correspondence from the Auditor-General requesting immediate intervention following the uMkhanyakude District Municipality's continued failure to address material irregularities. The AGSA's instruction is based on findings relating to the municipality's long-standing non-implementation of a credit and debt collection policy, as required under Section 62(1)(f)(ii) of the Municipal Finance Management Act (MFMA). 'The failure of the municipality to implement its credit and debt collection policy for a number of years and to take reasonable steps to recover outstanding debt from consumers is likely to result in a material financial loss for the municipality,' said Maluleke. The AG further noted that 'the failure of the accounting officer to take appropriate actions to address the material irregularity led to a decision by the AGSA's Material Irregularity Committee to approve reporting in the audit report of the municipality.' The correspondence defines a material irregularity under the Public Audit Act as a contravention of legislation or breach of fiduciary duty that results in, or is likely to result in, financial loss or substantial harm to a public institution or the general public. 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 ✕ Ad Loading The MEC has until August 15 to submit a formal report to the AGSA on the steps being taken to address the matter. 'The department stated that the MEC will abide by the AG's request and comply with the given deadline,' a department spokesperson stated. The latest development comes in the wake of a standoff between MEC Buthelezi and uMkhanyakude municipal leadership earlier this month. On July 14, the MEC was forced to break locks and hold a meeting outside the municipal offices after the speaker and municipal manager allegedly blocked his access. During that visit, he announced that the municipality would be placed under administration in terms of Section 139(1)(b) of the Constitution and introduced Bamba Ndwandwe as the appointed administrator. He also revealed that a Section 106 forensic investigation had been launched to probe allegations of corruption and maladministration. After that incident, the municipality responded by rejecting the intervention, accusing the MEC of undermining local democratic processes and acting without due consultation. 'The intervention infringes upon the constitutional rights of the council… and creates an impression that elected representatives are dysfunctional, which is not a fair reflection,' Speaker T.S. Mkhombo had said in a statement at the time. Mkhombo argued that uMkhanyakude had made strides in stabilising governance and finances since the end of a previous intervention in April. The municipality also warned of possible legal action, saying it was exploring a review under the Promotion of Administrative Justice Act (PAJA). However, with the AGSA's direct involvement now confirming governance and financial management lapses, the pressure on the municipality's leadership has intensified. 'MEC Buthelezi holds the AGSA's office in the highest regard and is committed to acting in the interest of the residents of the uMkhanyakude District,' Cogta said. 'These residents bear the brunt of failed service delivery due to a lack of governance, financial, and consequence management measures within the District.' The municipality had not responded to a request for comment by the time of publication. THE MERCURY
TimesLIVE
4 days ago
- Business
- TimesLIVE
Auditor-general demands action from KZN Cogta MEC in troubled uMkhanyakude municipality
Auditor-general Tsakani Maluleke has instructed KwaZulu-Natal Cogta MEC Thulasizwe Buthelezi to intervene in the trouble-torn uMkhanyakude district municipality. Buthelezi, an IFP deployee in the provincial legislature, and ANC-led uMkhanyakude officials are at loggerheads over the provincial cabinet's decision to place the council under administration. uMkhanyakude officials are resisting the decision, saying it is politically motivated. They have since taken Buthelezi to court over the matter. Earlier this month, Buthelezi was forced to announce that the municipality had been placed under administration at the entrance of the council offices after he was denied entry. On Sunday, Buthelezi said he had received formal correspondence from Maluleke instructing him to intervene in uMkhanyakude. 'The auditor-general has requested that I intervene in the uMkhanyakude district municipality due to the municipality's consistent failure to address material findings. These findings stem from the municipality's inability to implement a credit and debt collection policy, as required by section 62(1)(f) (ii) of the Municipal Finance Management Act (MFMA),' said Buthelezi. A material irregularity is defined in the Public Audit Act (PAA), as 'any noncompliance with, or contravention of, legislation, fraud, theft or a breach of a fiduciary duty identified during an audit performed under this act that resulted in or is likely to result in a material financial loss, the misuse or loss of a material public resource or substantial harm to a public sector institution or the public'. In the correspondence, Maluleke highlighted that 'The failure of the municipality to implement the municipality's credit and debt collection policy for a number of years and to take reasonable steps to recover outstanding debt from consumers is likely to result in a material financial loss for the municipality'. The AG further stated that: 'The failure of the accounting officer to take appropriate actions to address the material irregularity led to a decision by the AGSA's material irregularity committee, duly delegated, to approve reporting in the audit report of the municipality on the material irregularity with recommendations, as provided for in section 20(4) of the PAA, read with regulation 4(3) of the MI regulations on the steps the accounting officer should take to address the material irregularity within a stipulated period in the audit report.' Buthelezi said he was aware of the grave nature of the issues raised by Maluleke, which were emphasised during a meeting with the AG on July 23. He said he was committed to acting in the interest of the residents of the uMkhanyakude district. 'These residents bear the brunt of failed service delivery due to a lack of governance, financial, and consequence management measures within the district,' he said, adding that the AG has requested a formal report from him by August 15.
