Question NW3086 to the Minister of Cooperative Governance and Traditional Affairs
08 September 2015 - NW3086
Basson, Mr LJ to ask the Minister of Cooperative Governance and Traditional Affairs
With regards to the inaction of the Municipal Manager in response to an internal audit report of the Madibeng Local Municipality, dated September 2014, in which the Municipal Manager is informed (on page 12 – 13) that a cheque requisition form for an amount of R2 217 469.35 was not signed by the person who requested it, not approved by the Director, Chief Financial Officer or the Municipal Manager, will he investigate this matter; if not; why not; if so, ( a ) when and ( b ) what are the relevant details; (2) What services were rendered to the municipality by Maximum Profit Recovery (Pty) Ltd to justify the payment of R2 217 469.35?
Reply:
The response below was provided by the municipality:
1. The Madibeng Local Municipality has appointed an external investigator to investigate the issues raised on the internal audit report. The investigation will also cover the payment made to Maximum Profit Recovery (Pty) Ltd. The investigation is expected to be finalised by the end of September 2015.
2. Maximum Profit Recovery (PTY) Ltd was appointed to render Value Added Tax (VAT) recovery service at a commission rate of 15% of the amount recovered from the South African Revenue Services (SARS). The outcome of the investigation will determine whether or not it was justifiable for the municipality to pay Maximum Profit Recovery (Pty) Ltd.