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AG’s findings on local government audit remains cause for concern

AG’s findings on local government audit remains cause for concern

Regarding the Auditor-general’s latest report on the local government audit, the United Democratic Movement (UDM) notes that there were only marginal improvements in local government audit results. We are however concerned that 14 municipalities lost their clean audit status, while only 9 cleaned up their acts. It simply means that good governance at local level, and effective municipal management, is moving in the wrong direction. It is heartening that the Auditor-general’s office, as a Chapter 9 institution, seems to be doing its job without fear or favour and does not shy away from fulfilling its Constitutional mandate. Statement issued by Mr Bongani Msomi – UDM Secretary General The UDM is on record regarding Government’s over-reliance on consultants and it is discouraging to hear that consultancy fees for financial reporting services increased to R838 million. The greatest worrying factors are that: 1)      Municipalities spend more than they have, their current liabilities exceed current assets at year-end, debtors are not paying or delay payment, as well as late payment of creditors. 2)      There has been no improvement on the perennial concerns of the Auditor-general about contracts awarded to employees, councillors, their families and other state officials. 3)      Even though fruitless and wasteful expenditure is down 21%, irregular expenditure has increased by just over 50%, which the Auditor-general said was “the highest since we started tracking the values”. Given the yearly damning observations, the UDM doubts if councils and municipal administrations take the Auditor-general seriously. The Auditor-general is simply ignored and the powers-that-be go about their merry ways without caring about the implications of their looting of State coffers and failing management. There are no repercussions for failing municipal administrations, and the UDM believes it might be necessary to have an Auditor-general with teeth. The UDM also notes an interesting trend regarding fruitless, wasteful and irregular expenditure by the Government; in particular at local sphere. This trend is mostly expressed during a year of general elections (national, provincial and local) as well as in a year of the conferences of the African National Congress (ANC) and its Alliance Partners. This trend is manifested in this year’s report, with the year preceding being Municipal Elections. We will not be surprised to notice a spike in expenses when, this time next year, another report is issued after the conferences of the ANC and its Alliance partners. The UDM will consider investigating this trend to establish whether public monies are not being used to fund internal political party programmes. If this is the case, it will be proof of yet another thievery. It is easy to look at the figures presented by the Auditor-general as list of amounts, but one must never forget that there are billions of Rands involved each year, which should be spent on bettering the lives of South Africans and not lining the pockets of the few.

Bantu Holomisa requests meeting of political leaders and IEC regarding ANC leadership’s criticism of Mr Terry Tselane

Bantu Holomisa requests meeting of political leaders and IEC regarding ANC leadership’s criticism of Mr Terry Tselane

Dear Mr Mashinini REQUEST FOR AN URGENT MEETING OF THE LEADERS OF ALL POLITICAL PARTIES REPRESENTED IN PARLIAMENT The above matter has reference. It has come to my attention that the African National Congress (ANC) has declared the Deputy Chairperson of the Independent Electoral Commission of South Africa (IEC), Mr Terry Tselane, an enemy. It is alleged that, at the IEC National Results Centre (in Pretoria) for the 2016 Municipal Elections, the Secretary General of the ANC, Mr Gwede Mantashe and his deputy Ms Jessie Duarte, in the presence of the State President (who is also the ANC’s President) caused a stir by confronting Mr Tselane and, amongst others, alleging that he: Was an enemy of the ANC; Was conniving with the opposition parties against the ANC; Had single-handedly removed teachers as IEC electoral officers during the 2016 Municipal Elections in order to benefit opposition parties; and that His behaviour has benefitted the opposition parties. These are serious allegations, considering that it was made against a member of the Electoral Commission. It is interesting to note that Mr Mantashe seems to be confirming that the appointment of teachers as electoral officers, is designed to disadvantage opposition parties and unduly benefit the ANC. Such an admission vindicates the view always held by opposition parties with regard to the ‘exclusive’ appointment of teachers as electoral officers. Many of these teachers, if not all, are members of a Cosatu affiliated teachers’ union, Sadtu. Cosatu is in alliance with the ANC and has always taken a firm decision to support the ANC in every election that has taken place since the advent of democracy in South Africa; its decisions binds Sadtu and its members. These allegations place a grey cloud over other Electoral Commissioners. It will not be far-fetched to question whether their loyalties are with the country, its citizens and the Constitution or with the ANC. This is important, because from these allegations, it is clear, that any Electoral Commissioner who does not sweeten the ANC will be regarded as an enemy and will be dealt with accordingly. These developments may necessitate that the current composition of the Electoral Commission be urgently scrutinised to ascertain whether they are all in the service of the nation or in the service of a political party. I am also made to believe that the ANC has begun to question Accenture, a company that has been contracted and worked with IEC to provide technical solutions for a stable technical environment to support elections processes. In my recollection, the credibility of this company has never been questioned by the ANC and it is interesting that it is only now emerging after the elections results that have shocked the ruling party. It begs a serious question; why does the ruling party now have an issue with Accenture and why was this matter never tabled at the appropriate body i.e. the National Party Liaison Committee. I am also aware that the ANC is allegedly considering to alter the current party representation on the IEC’s Party Liaison Committees in favour of proportional representation. We wish to obtain a detailed understanding of this development and its rationale. The alleged meeting that took place on Monday, 19 September 2016, at Luthuli House, which was attended by some of the ANC ‘top six’ and Electoral Commissioner, is of serious concern. It is further disturbing that it is alleged that some of the issues raised above were discussed in the said clandestine meeting. Accordingly, I request that you convene an urgent meeting of all the leaders of parties represented in the South African Parliament to consider, amongst others, the matters raised above. I hope this will be attended to urgently. Mr Bantu Holomisa, MP President of the United Democratic Movement

Bantu Holomisa writes to Thuli Mandonsela with request for an addendum of costs for Nkandla

Bantu Holomisa writes to Thuli Mandonsela with request for an addendum of costs for Nkandla

Dear Advocate Madonsela REQUEST FOR AN ADDENDUM TO THE COSTS OF NKANDLA New details have emerged of how state funds were used to buy fittings, fixtures and building materials for private residence of the President. I am aware that your office was not granted access to this information, however, it is now in the public domain. The former Deputy Director General of the Department of Public Works, Rachard Samuel, is reported to have compiled a dossier revealing the following as costs that were paid by the department towards the private renovations of the private residence of the President. According to the Sunday Times report of the 27 March 2016, Rachard Samuel listed costs, totalling to a whopping R4, 6 million which is broken down as follows: 1.    R1.5-million for air-conditioning at two private houses, a guesthouse and a guardhouse. This is apart from the R5-million for air-conditioning detailed in your report and that of the Special Investigating Unit (SIU); 2.    R311, 932 for covered walkways between private residences; 3.    R54,721.20 for six meranti doors and 26 meranti window frames; 4.    R11,850 for hinges and bolts, doorstops, stainless steel hat-and-coat hooks, and six doormats that cost R1500 each; 5.    R34,834.80 for aluminium sliding doors – without bulletproof glass – and other aluminium installations; 6.    R38,517 for bulletproof sliding doors; 7.    R63,215 for plastering materials, R23,300 for tiling and R41,406 for painting internal and external walls; 8.    R271, 796 for carpentry and joinery, including roof construction; and 9.    R2.4 million for “extras”. I believe, that your office has the authority to summon this information, and approach the Office of the Chief Justice for a proper guidance on how to deal with the new exposé. If this information is true as I believe, then it should help the National Treasury in making a proper determination of the costs to be personally paid by the President. I look forward to a favourable consideration of this request. Kind regards, Mr Bantu Holomisa, MP President of the United Democratic Movement