Question NW176 to the Minister of Cooperative Governance and Traditional Affairs
07 April 2016 - NW176
Van Dyk, Ms V to ask the Minister of Cooperative Governance and Traditional Affairs
Whether the (a) accounting officers and/ or (b) any of the oversight officers, such as local government committees, the executive mayors and municipal councils, have any responsibilities to ensure that the directors at any local government operate within their designated (i) operating and (ii) capital budgets; if not, why not; if so, what are the relevant details in each case; 2) Whether any incidences of unauthorized, irregular or fruitless and wasteful expenditure were reported in any local government in the Northern Cape in the last municipal financial year; if not, what is the position in this regard; if so, (a) why are incidences of irregular , fruitless and wasteful expenditure at local Government level, reported in the Auditor General’s opinion on the relevant authority’s annual financial statements, only addressed at this stage of the financial reporting process, and not during the financial year as soon as it is picked up and (b) why are incidences of these types of expenditure not recouped from the responsible directors and / or political office-bearers in line with section 32 of the Local Government Municipal Finance Management Act, Act 56 of 2003?
Reply:
- Yes, (a) accounting officers and oversight committees have responsibilities to ensure that the directors at any local government operate within their designated (i) operating and (ii) capital budgets in line with Chapter 8 of the Local Government Municipal Finance Management Act, 56 of 2003. Further, section 79 of the Local Government Structures Act gives municipal councils the power to establish one or more committees necessary for the effective and efficient performance of any of its functions or the exercise of its powers.
After the municipal council approves the budget, the Budget and Treasury Office (BTO) ensures that each director within the municipality manages their own budget. On a weekly basis cash flow plans as well as expenditure plans are distributed amongst directors to avoid over expenditure on budget votes. Councillors also play an oversight role due to the fact that expenditure reports are tabled to the council on a quarterly basis.
2. Three (3) municipalities reported in line with Section 32 of Local Government Municipal Finance Management Act, expenditures to MEC: Cooperative Governance, Human Settlements and Traditional Affairs in Northern Cape in the last financial year. The municipalities which reported are Tsantsabane Local Municipality, Sol Plaatjie Local Municipality and ZF Mgcawu District Municipality.
(a) Municipalities do not report regularly to the Province on unauthorised, irregular or fruitless and wasteful expenditure. Such expenditure is reported to council and the necessary steps are taken to recover the losses. The actual amount of unauthorised, irregular or fruitless and wasteful expenditure can only be determined at the end of the municipal financial year. Municipalities also reports to the National Treasury on a monthly basis in line with Section 71 of the Local Government Municipal Finance Management Act, Act 56 of 2003.
(b) Municipal Councils have the responsibility to recover monies from the responsible directors and political office bearers. In addition, where political leaders and senior officials are found to have ignored their mandates or disregard legislation, the Code of Conduct for Political Leaders and the procedures provided for in the Municipal Systems Act, 2000 (Act No 32 of 2000), as amended are invoked, respectively. Members of the Executive Council (MECs) have been sensitized on the matter and were urged to take the necessary steps to apply the said provisions, as and when required.