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UDM Johannesburg demands accountability over R1 million ‘ghost wall’ payment

UDM Johannesburg demands accountability over R1 million ‘ghost wall’ payment

Statement by Yongama Zigebe, Councillor in the City of Johannesburg for the United Democratic Movement and Chairperson of the S79 Committee on Gender, Youth and People with Disabilities The United Democratic Movement (UDM) in the City Johannesburg notes with serious concern the reports that a City of Johannesburg entity allegedly paid approximately R1 million for a wall that was never built at the Moffat View Old Age Home. According to media reports, the payment was authorised despite the work not being completed, with photographic evidence allegedly not reflecting the actual site. This matter, involving the Johannesburg Social Housing Company, strikes at the heart of governance, financial oversight and ethical leadership within the City’s entities. Whether the funds were later recovered or not, the fact that such a payment could be processed raises fundamental questions about internal controls, verification systems and consequence management. Johannesburg residents are battling deteriorating infrastructure, housing backlogs, unsafe buildings and declining service delivery. At a time when every rand must stretch to serve the poor and vulnerable, allegations of payments for work that never materialised are not just irregularities, they are betrayals of public trust. We note that internal investigations and forensic processes have reportedly been initiated. However, the UDM in the City Johannesburg insists that transparency must accompany these processes. The people of Johannesburg deserve clear answers: 1.    Who authorised the payment and on what verification basis? 2.    What due diligence was conducted before disbursement? 3.    Were supply chain processes followed? 4.    What disciplinary steps have been taken against implicated officials? 5.    How will the City strengthen controls to prevent recurrence? The UDM in the City Johannesburg further calls on the City Council and the relevant oversight committees to exercise their constitutional responsibilities without fear or favour. If wrongdoing is established, there must be visible and swift consequences. Accountability cannot depend on media exposure. This incident once again underscores the urgent need to professionalise municipal administration, depoliticise appointments in city entities, and ensure that senior positions are filled on merit and integrity, not networks and patronage. Johannesburg cannot afford “ghost projects” while communities live without basic infrastructure. Every cent mismanaged is a cent stolen from residents who rely on the City for housing, safety and dignity. The UDM in the City Johannesburg will continue to monitor this matter closely and will push for full disclosure and corrective action. Clean governance is not optional. It is the minimum standard our people deserve.  

KZN provincial government is extravagant

KZN provincial government is extravagant

The United Democratic Movement is perturbed by the news that the MEC for Education in the Province is using a hired motor vehicle for his official business that is costing taxpayers a whooping R100 000 per month. This is unbelievable if one considers that the ANC claims to be the government of the people and which represent the poorest of the poor. This is an illustration that the ANC led government does not practice what it teaches. The same government has made a lot of noise that it is going to do everything to save but look at this. This country is a now replica of Animal Farm. In five months’, time with this money a big luxurious motor vehicle in the range of a Toyota Fortuner can be easily bought. The big question that the UDM is asking, is this procurement of this hired motor vehicle in question a result of gross negligence or incompetence of officials or the department itself? Does this mean the motor vehicles of the state are not insured with a benefit of a provision of hired vehicles if it happened that they are booked for service or repairs? Courtesy cars should be available, This raises so much concern. The UDM KZN calls upon the Office of the Premier to do a proper investigation on this matter that will among other things find those involved who did not do their work. Whoever found wanting must pay back the money that has been spent unwisely. This is pure wasteful expenditure. End// Issued by: Boysey Gumede UDM-KZN Interim Provincial Secretary

Department of Labour Compensation Fund: corruption and wasteful expenditure

Department of Labour Compensation Fund: corruption and wasteful expenditure

To:                 The Public Protector – Ms Thuli Madonsela Copy:           The President of the Republic – Mr Jacob Zuma                          The Auditor General – Mr Thembekile Makwethu From:          The UDM President – Mr Bantu Holomisa, MP subject:         Department of Labour Compensation Fund: corruption and wasteful expenditure Dear Ms Madonsela The above mentioned matter has reference. R2,5 billion Compensation Fund investments misuse The UDM understands that the main purpose of this fund is to compensate for occupational injuries and diseases. Reserved funds normally are invested with the public investment cooperation for unforeseen mass occupational injuries that might occur in future and to cater for increases on injury on duty, monthly pensions for employees and dependents. Payment of advances to private companies – R546 million There are serious allegations which fingers the Compensation Commissioner who has paid some companies in advance to the tune of R546 million. He is alleged to have undertaken a very risky action by paying advances to these companies without any invoices to reconcile the payments. Debtor’s book has increased: R3,3 billion in 2010 to 8,9 billion in 2013 The Compensation Commissioner appointed a debt collector by the name of NICS since 2010 that has already been paid about R160m. In contrast, the debtors’ book has increased from to R3.3billion in 2010 when they took over from internal staff to R8.9 billion in 2013. This is evidence that NICS is not effective at all but is collecting on the efforts made by internal staff by charging 10% of collection. The contract was deliberately manipulated and changed by the Compensation Commissioner to deviate from the initial tender specification whereby NICS was supposed to collect on older debts beyond 180 days. NICS collects on simpler cases to make quick cash while internal staff is also pursuing the same cases. The Commissioner has flatly refused the legal advice by the Senior Council that the contract should have been terminated on grounds of poor performance. We therefore appeal to your good office, President’s office and the Auditor General to speedily attend to this seemingly looting spree taking place at the Compensation Fund. As you will be reading this document, especially Mr President, you will find that the Minister of Labour Ms Mildred Oliphant is being accused of conflict of interest with the Accenture IT Company, where her close relative is a director. As a result of this apparent corrupt relationship, Accenture was procured to a closed tender and the Minister did not declare her relationship to Accenture. Kindly advise. Mr Bantu Holomisa, MP UDM President