The DA in Kouga wishes to highlight a few issues in the Annual Report 2013/2014 (2nd Draft) and furthermore wishes to remind Kouga residents that comments/proposals on the report must be submitted to the municipal manager before 27 February 2015.
Here follows some general comment which can be borne in mind when residents respond to this request:
1) Executive summary by municipal manager
Under creditors a remark has been made that “Council has sufficient cash flow to meet most of its financial commitments. And further that agreements are in place with some government institutions … ”
(a) It is clear from the AG’s Report that the cash flow is not sufficient which in fact was the reason why interest of R2.3m. had to be paid on late payments.
(b) To make “payment agreements” is the direct consequence of not paying monthly accounts regularly and this is bad policy because the municipality increases its monthly financial commitment.
2) Notes to the Financial statements for the year ended 30 June 2014
Under Section 47 Unauthorised, Irregular, Fruitless and Wasteful Expenditure a huge number of issues were raised as unauthorised.
(a) These issues reflect poor financial management by Kouga Municipality and that (b) no action or corrective steps were implemented by administration over many years.
(c) That steps taken by council on 10 February 2015 to condone the above were irregular and unlawful.
3) Report of the Auditor General 2013/2014
The DA wishes to make a few comments on the matters raised by the Auditor General:
Par. 8) Significant uncertainties. The number of lawsuits to the amount of R 28.9 million is totally unacceptable as it is an indication of incompetency of senior management.
Par.13) Material Losses: The material losses relating to water of R 11.8 million is not acceptable as that is an indication of negligence, no discipline and no cooperation between the municipalities departments.
Par. 15) Fruitless and wasteful expenditure: R 2.3 million was incurred due to penalties and interest on late payments of creditors.
If no individual can be held accountable and no wilful misconduct took place then the only other reason for the fruitless expenditure is poor cash flow management and in such a case the accounting officer must accept responsibility for that.
Par.18) Irregular expenditure of R 1.1 million was incurred due to not adhering to Supply Chain Management regulations and procedures.
Surely somebody must be accountable for blatantly ignoring the SCM Regulations.
Lastly we wish to draw your attention to section 130 of the Municipal Finance Management Act (Act 56 of 2003 ), which reads “Council meetings open to public and certain public officials”.
Please see Section 130 which reads: “The meetings of a municipal council at which an annual report is to be discussed or at which decisions concerning the annual report are to be taken, must be open to the public and any organs of state, and a reasonable time must be allowed— (b) for members of the local community or any organ of state to address the council.”
Cllr Nico Botha