Contracts worth R165m awarded to Free State councillors and their families

2015-06-10 14:38
A universal system for transacting across multiple mobile money platforms in South Africa is an attainable goal, says an expert. (Duncan Alfreds, Fin24)

A universal system for transacting across multiple mobile money platforms in South Africa is an attainable goal, says an expert. (Duncan Alfreds, Fin24)

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Bloemfontein - More than 200 municipal contracts in the Free State were awarded to councillors, employees and close family in the past year, according to the Auditor General.

A total of 233 contracts valued at R165.2m were awarded to councillors, people employed by the state and their close family.

Included in this amount are 176 awards - valued at R71.3m - to employees, councillors and other state officials and 57 awards -valued at R93.9m - made in favour of close family members of the councillors and employees.

All awards to close family members and employees are required to be disclosed in a municipalities’ financial statements.

As much as 93% of the number of awards to close family members of employees and councillors did not meet one or more of the requirements.

The AG noted that 127 awards valued at R125.7m that were requested for audit were not submitted due to limitations imposed by management. The report suggests these awards may have been withheld deliberately to conceal fraud.

Read more on:    bloemfontein  |  fraud  |  government spending  |  local government

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