Durban exco unanimously adopts Manase audit report

2012-02-08 11:39

The eThekwini executive committee will on Tuesday begin internal investigations into the officials and councillors implicated in maladministration and corruption by a forensic audit.

Mayor James Nxumalo said the council, which was briefed on the report yesterday by Cooperative Governance and Traditional Affairs (Cogta) MEC Nomusa Dube, had resolved unanimously to adopt the hard-hitting report.

Dube appointed forensic audit firm Manase and Associates (M&A) in April to conduct the audit.

The city’s executive committee would consider how to respond to the report and implement its recommendations from Tuesday and would report back to the council by Wednesday.

In the meantime, all transactions which would previously have been handled by the city’s bid adjudication committee would be scrutinised by the new city manager, S’bu Sithole, before any payments were made.

The report implicated former city manager Mike Sutcliffe and mayor Obed Mlaba in violations of the municipal finance management act and the municipal systems act.

Sitting senior officials, including finance head Krish Kumar and infrastructure and procurement boss Derek Naidoo, should also face disciplinary – and perhaps even criminal – charges, according to the report.

“(The) Exco (executive committee) will go through each and every item, look at the findings and recommendations and determine what course of action will be taken to remedy the situation.

“In cases where there’s a need for further investigation, those will be dealt with in cooperation with Cogta,” Nxumalo said.

The mayor said Sithole and his management team were expected to immediately deal with correcting the failings in the city’s management and oversight systems.

He added that while nobody had been found guilty at this stage, criminal charges would be laid where necessary.

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