Ex-Oudtshoorn municipal manager jailed for 5 years

2017-04-03 20:39


Multimedia   ·   User Galleries   ·   News in Pictures Send us your pictures  ·  Send us your stories

Cape Town - A former Oudtshoorn municipality manager has been sentenced to five years imprisonment for contravening the Municipal Finance Management Act, the NPA said on Monday.

Noel Pietersen was released on R5 000 bail and granted leave to appeal following the “landmark successful prosecution”, National Prosecuting Authority Western Cape spokesperson Eric Ntabazalila said in a statement.

Pietersen was convicted after improperly appointing IBR Consultants, owned by former Stellenbosch municipal manager Ian Kenned.

The company over-invoiced the municipality on a number of occasions and was paid more than R2m between October 8, 2010 and June 30, 2011.

“The accused failed to act in the best interests of the municipality when entering into an open-ended agreement with no controls in place to hedge the municipality’s risks,” he said.

“The services required were not budgeted for, to the extent that there was no control over the number of hours for which IRB could submit invoices.  The procurement process was not fair, equitable, transparent, competitive and cost-effective,” Ntabazalila said.

“The service level agreement between IBR and the municipality was not subjected to any proper scrutiny.”

IBR’s appointment was open-ended. It provided for the provision of general and specific advice to the speaker, the municipal manager and any official/politician sanctioned by the manager, and guidance about the municipality’s functioning  and “anything in addition or incidental”.

The Municipal Finance Management Act prescribes that consultants can only be appointed if the necessary skills or resources to perform a project are not available, and the accounting officer cannot be reasonably expected either to train or to recruit people in the time available, Ntabazalila explained.

“There was already an existing service provider who had been performing such work for the municipality. No urgency or exceptional circumstances existed. IBR was hastily registered on the supplier database even before the deviation application was approved. The services required were not specialised,” he said.

IBR’s invoices did not contain any sufficient details of how and on which particular assignment the hours charged for were spent.

“The total number of hours worked (and paid for) and kilometres travelled are excessive. The instructions to IBR and payments were manipulated to prevent them from being detected during audits and to create the impression that the procurement obtained fell within the set R200 000 limit,” he said.

Procurement above R200 000 had to be done via a competitive bidding process.

Read more on:    cape town  |  corruption  |  crime

Join the conversation!

24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.

Inside News24

Traffic Alerts
There are new stories on the homepage. Click here to see them.


Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.


Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.