[afr]
Op 8 November het die Appèlhof 'n uitspraak gelewer wat sekerlik munisipale amptenare sal laat regop sit. Daar gaan borspyne wees; sommige gaan slaap verloor en ander sal op verlengde verlof wees.
In 'n lang regsaak wat terugdateer na 2014, is die munisipale bestuurder en 3 ander senior amptenare van die Nelson Mandelabaai Metropolitaanse Munisipaliteit (Port Elizabeth soos dit destyds bekend gestaan het) aanspreeklik bevind vir onreëlmatige uitgawes in 'n totale bedrag van R7 638 177,10, in terme van artikel 32 van die Wet op Plaaslike Regering: Munisipale Finansiële Bestuur 56 van 2003 (MFMA).
Die saak spruit voort uit die verweerders se aanstelling van Erastyle (Edms) Bpk as 'n konsultant in die ontwikkeling van 'n omvattende kommunikasie- en bemarkingstrategie, ter waarde van sowat R6 miljoen, vir die Geïntegreerde Openbare Vervoerstelsel (IPTS) van die Munisipaliteit. Erastyle is aangestel sonder 'n openbare tenderproses en in stryd met die Munisipaliteit se Voorsieningskanaalbestuurbeleid (VKM). Dit het daartoe gelei dat die Munisipaliteit aansienlike onregmatige betalings aan Erastyle gemaak het vir dienste wat klaarblyklik nooit gelewer is nie. Artikel 32 van die MFMA skep persoonlike aanspreeklikheid aan die kant van amptenare en politieke funksionarisse wat opsetlik of nalatig sulke onreëlmatige uitgawes aangaan.
Die Munisipale Bestuurder en 3 munisipale amptenare is beveel om gesamentlik die hoofbedrag van R7 638 177.10 aan die munisipaliteit terug te betaal en boonop alle verskuldigde rente, asook die regskostes vir die saak wat nog 'n miljoen of twee kan byvoeg! Daar word gehoop dat die Appèlhof-uitspraak as 'n waarskuwing aan munisipale amptenare sal dien en onreëlmatige, ongemagtigde en verkwistende uitgawes (IU&W) sal afskrik.
MAFUBE PLAASLIKE MUNISIPALITEIT
Volgens die mees onlangse ouditeur-generaal se verslag vir Mafube en die Tesourie se Status Quo-verslag van 2023, is onreëlmatige uitgawes as R279 782 361 gerapporteer in die 2021/22 finansiële jaar (FJ 2020/21: R206 618 592.) wat 'n verhoging van 35% is. in vergelyking met die vorige jaar. Daar bestaan twyfel of daar enige verbetering sedertdien was en in die lig van die gebrek aan finansiële dissipline soos blyk uit die Munisipale Raad van Mafube wat weer 'n onbefondsde begroting goedgekeur het, is dit waarskynlik dat IU&W-uitgawes onverpoosd sal toeneem.
MBF hoop dat munisipale amptenare kennis sal neem van die Appèlhof-uitspraak.
Besoek ons kantore by Kerkstraat 18A, Frankfort op Maandae tot Donderdae van 08h30 tot 16h00 en Vrydae 08h00 tot 12h00. Bel of stuur 'n WhatsApp-boodskap aan Marina by 079 145 4295. Besoek ons webwerf www.mafubebf.org en volg ons op Facebook.
[eng]
On 8 November, the Supreme Court of Appeal (SCA) delivered a judgement that is sure to make municipal official sit up. There are going to be chest pains; some are going to lose sleep and others are going on an extended leave of absence.
In a prolonged legal case dating back to 2014, the municipal manager and 3 other senior officials of the Nelson Mandela Bay Metropolitan Municipality (Port Elizabeth as it was known then) was found liable for irregular expenditure in a total amount of R7 638 177.10, in terms of section 32 of the Local Government: Municipal Finance Management Act 56 of 2003 (MFMA).
The case arises from the defendants’ appointment of Erastyle (Pty) Ltd as a consultant in the development of a comprehensive communication and marketing strategy, valued at some R6 million, for the Integrated Public Transport System (IPTS) of the Municipality. Erastyle was appointed without a public tender process and in breach of the Municipality’s Supply Chain Management Policy (SCM). This resulted in the Municipality making substantial unlawful payments to Erastyle for services that were evidently never delivered. Section 32 of the MFMA creates personal liability on the part of officials and political functionaries who intentionally or negligently incur such irregular expenditure.
The Municipal Manager and 3 municipal official have been ordered to jointly repay the principal amount of R7 638 177.10 to the municipality and top of that all interest due, as well as the legal costs for the case, which could add another million or two! It is hoped that the SCA judgement will serve as a warning to municipal officials and deter irregular, unauthorized and wasteful expenditure (IU&W).
MAFUBE LOCAL MUNICIPALITY
According to the most recent Auditor General’s Report for Mafube and Treasury’s Status Quo Report of 2023, Irregular Expenditure was reported as R279 782 361 in the 2021/22 financial year (FY 2020/21: R206 618 592) which is an 35.41% increase as compared to the prior year. There exists doubt whether there has been any improvement since then and in light of the lack of financial discipline as evidenced by the Municipal Council of Mafube again approving an unfunded budget, it is likely that IU&W expenditure will continue to increase unabatedly.
MBF are in hope that municipal officials will take note of the SCA judgement.
Visit our offices at 18A Church Street, Frankfort on Mondays to Thursdays from 08h30 to 16h00 and Fridays 08h30 to 12h00. Call or send a WhatsApp message to Marina on 079 145 4295. Visit our website www.mafubebf.org and follow us on Facebook.
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