AG makes damning findings on Mpumalanga legislature's finances

2016-10-12 17:10
(File, iStock)

(File, iStock)

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Mbombela - The Mpumalanga provincial legislature failed to submit its tender files for auditing purposes, according to the Auditor General's report for the 2015/16 financial year.

This was just one of the damning findings contained in the AG's report on the audit performed on the lawmaking and oversight entity.

In the scathing report, which forms part of the legislature's annual report, the AG states that an audit to determine whether the legislature complied with applicable procurement practices could not be completed due to the legislature's failure to submit files.

"Sufficient appropriate audit evidence could not be obtained that all awards had been awarded in accordance with the legislative requirements and a procurement process that was fair, equitable, transparent and competitive, as tender files were not submitted," reads the AG's report.

The audit also observes that the legislature did not implement proper record keeping to ensure that complete, relevant and accurate information was accessible and available to support financial reporting.

The AG also found that the legislature did not advertise invitations for bids, as required by legislation.

"Invitations for competitive bidding were not always advertised for the required minimum period, contrary to supply chain management (SCM) regulation 6(8)(a)(ii) issued in terms of the Financial Management of Parliament and Provincial Legislatures Act (FMPPLA)," reads the report.

Additionally, it was found that the legislature did not invite competitive bids for transactions valued above R1m as per legislation.

Allegations 'unfounded'

"Goods and services with a transaction value above R1 000 000 were procured without inviting competitive bids, contrary to the legislature's SCM policy and SCM regulations 6(3)(e) and 6(11) issued in terms of the FMPPLA," said the AG in his findings.

Legislature spokesperson Zamagambu Memela-Gamede disputed the findings in the AG's report and allegations about the disappearance of tender files.

"All tender files that were requested by the AG were submitted accordingly to the Auditor General. The insinuation [that legislature files were made to disappear] is unfounded and not true. It is not a custom of the legislature to engage in irregular expenditure as this is in contravention of FMMPLA and SCM policies," said Memela-Gamede.

Last month, it was reported by local media that the legislature had, on at least two occasions, invited quotations from two companies, Luthando Nto General Trading and Ndende Investment, and on both occasions the contract was awarded to Luthando Nto General Trading.

An insider in the legislature disclosed that both companies were owned by a married couple, Ntokozo Manyisa and Eddy Mabuza. The couple have declined to confirm or deny their relationship.

Another allegation was that Manyisa was given preferential treatment as she was the biological daughter of secretary to the legislature Linda Mwale.

Mwale has denied the allegation through a written statement, but Manyisa declined to confirm or deny any relationship with Mwale.

Read more on:    mbombela  |  local government

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