Municipality Fraud & Corruption Investigations

LOCAL GOVERNMENT AND ADMINISTRATION SELECT COMMITTEE
16 September 2003
MUNICIPALITY FRAUD AND CORRUPTION INVESTIGATIONS

Chairperson: Mr B Mkhaliphi (ANC) [Mpumalanga]

Documents handed out:
Report on the Investigations in Terms of Section 106(1)(b) of Local Government: Mpumalanga Provincial Government (Appendix)

SUMMARY
Members lamented the lack of details in the reports and emphasized the need for following up on which steps were taken in the municipalities and the outcome thereof.

It was also decided to go to Mafikeng the following week to approve the intervention by the MEC.

MINUTES
Mafikeng
The chairperson informed the committee that in March of 2003 he received a letter from the MEC for Local Government in the North West, informing the NCOP that he commissioned a committee of inquiry into the Mafikeng Municipality. They were promised that they would receive the report but that did not happen. The intervention had taken place as of 9 September 2003. This committee is required by Parliament to make sure the intervention is justified within ten days. As this was an internal organizational matter an extension would be applied for but the committee would have to go to Mafikeng the following week.

Lekwa, Delmas and Msukaligwa
The chairperson commented that the reports had very few details in them. It was not indicated whether the misappropriated monies were recovered or whether necessary punishment for offenders was handed out.
He added that in Delmas some steps were taken to try and recover the money from the mayor. He resigned as mayor but remained a councillor after being found guilty of improperly acting with money. They would have to find out from the MEC what exactly happened.

Mr Lever (DP) proposed putting the committee's concerns into writing. After getting answers they could contemplate taking further steps.

Mr Matthee (NNP) supported this course of action.

The Chairperson agreed with them and it was decided to wait for the MEC's response before taking any action.

The meeting was adjourned.

Relevant documents:
REPORT ON THE INVESTIGATIONS IN TERMS OF SECTION 106(1)(b) OF THE LOCAL GOVERNMENT: MUNICIPAL SYSTEMS ACT, 2000 (ACT NO.32 OF 2000) INTO ALLEGATIONS OF FRAUD, CORRUPTION, MALADMINISTRATION AND OTHER MALPRACTICES AT THE DELMAS, LEKWA AND MSUKALIGWA LOCAL MUNICIPALITIES

Following the institution of investigations in terms of section 106(1)(b) of the Systems Act, 2000 in the two aforementioned municipalities, I hereby submit my report to the National Council of Provinces on the outcome of the investigations conducted In the three aforementioned municipalities.

1. Lekwa Municipality:

An investigation into alleged maladministration and corruption revealed gross misuse of the Mayoral Fund by the then Mayor, Clr D L Thabete. Following disciplinary action Mr. Thabete was removed as Mayor as well as a member of the Lekwa Council.

2. Delmas Municipality:

An investigation into alleged misuse of the Mayoral Fund and other irregularities was instituted. The investigation confirmed the allegations and recommended inter alia that criminal charges be instituted against the then Mayor, Clr. Jubi Makhabane and further recommended that council recover all funds that were used by the mayor for illegal purposes. The Mayor subsequently resigned.

3 Msukaligwa Municipality
An investigation into inter alia allegations of corruption, maladministration and other malpractices at Msukaligwa was conducted It recommended that the council's employment policies and procedures be transformed to ensure compliance with the Systems Act, 2000 The investigation further recommended corrective measures which the municipality must implement to cure weaknesses in its procurement systems. Disciplinary measures were also recommended against some employees of the municipality and a report is awaited on the outcome of this processes