R100 million ‘missing’ in Msunduzi

2015-11-25 06:23

MSUNDUZI Municipality Executive Committee (Exco) member Jabu Ngubo called for thorough investigations into the municipality’s Section 32 tender appointments in the 2013/2014 and 2014/2015 financial years, and a probe into the municipality’s financial accounts after revealing that a staggering R100 million “went missing”.

Section 32 of the Municipal Finance Management Act allows a municipality to award tenders or contracts without going through the internal supply chain management processes of calling for tenders. Ngubo said the R100 million is linked to the contractor, the Independent Development Trust (IDT).

Ngubo’s argument was that the R100 million is linked with the electrification project.

Mayor Chris Ndlela said that since the electrification matter had previously gone to full council, Ngubo’s request can go to full council. In the 2011/2012 financial year the municipality assessed its then-poor and deteriorating electricity infrastructure through IDT. In one of the Exco meetings IDT outlined electricity supply challenges faced by the municipality. In the 2012/2013 financial year the municipality had entered into a memorandum of agreement with IDT in that IDT had been appointed as funding co-ordinators and as an implementing agent of the municipality’s electricity supply and maintenance programme.

It is alleged that IDT did not pay contractors who carried out the work and IDT then became the municipality’s debtor after apparently failing to pay back millions to the Msunduzi Municipality. The municipality then paid the contractors, but payments from IDT remained hanging.

Comment from IDT could not be gathered at the time of going to print.

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