KAROO NEWS - On Wednesday, Dr Beyers Naudé Local Municipality Mayor, Deon de Vos, issued a response to the allegations of financial mismanagement of drought funds.
“We have been confronted by various non-factual newspaper articles published on drought relief funds, which is extremely damaging to the image of the municipality,” said De Vos.
In his statement, he confirmed the amount received for drought relief, the projects to which the funds had been allocated, and the rollover request.
According to the statement, a virtual meeting was held between the mayor, management and senior officials of the EC Auditor General’s office on 1 July, where the findings on the unspent grant were discussed and it was agreed that the spending of the R24-million would be disclosed in the 2019/20 financial statements.
A meeting was also convened on 8 July, between finance officials of the municipality and officials from the office of the Auditor General EC.
The statement said that the municipality continued with the implementation of drought relief projects after approval was received from National Treasury on 21 October 2019, and that service providers were informed that projects should be completed by 30 June 2020.
“A schedule of all projects with progress indicated is available, and the office of the Auditor General is most welcome to audit the available documentation to satisfy any queries,” said the mayor. “We have submitted correspondence to the office of the Auditor General EC, to request that they correct and or repudiate the content of articles published, as the aforementioned is being viewed in a very serious light and cannot merely be ignored,” he concluded.
Allegations of financial mismanagement
Graaff-Reinet resident Liz Buisman feels strongly that the municipal manager Dr Rankwana must be held accountable, as the officials are answerable to him not the mayor, as he is the accounting official.
“The financial management must be in chaos. The mayor takes the residents for fools and makes out that the AG is at fault,” she said. “Heleen Kok, the CFO has been suspended for about a year now - at about R1.3-million per year, and no explanation was given when the municipality was asked the reason for the suspension.”
A local anti-corruption activist was not impressed either. “The mayor's response is purely a damage control exercise. He was given an opportunity to respond and provide a portfolio of evidence by the AG but failed to do so.
Mbulelo Tini, a resident of the DBNLM, felt that the mayor’s statement is just a smoke screen. “It also contradicts what the MEC of CoGTA said, that the eight municipalities that received a disclaimer will have to sign a pledge that commits both MM and mayor to improve their services and have a better audit report in this financial year,” said Tini.
Derek Light, chairman of the Graaff-Reinet Economic Development Forum, was pleased with the prompt response to his letter to the mayor. “I have received a written response to the Forum’s enquiry from the MM furnishing a detailed response,” said Light.
“This has prompted a further enquiry, and upon receipt of a reply we will consider the position and whether the response is satisfactory.”
One local councillor, who asked to remain anonymous, was disappointed but not surprised by the statement. “The mayor did not respond to the AG’s finding of the project funds available not being cash backed. For the past two to three years, the municipality has using grant funding to pay running commitments because of a lack of cash income.”
He did not dispute the mayor’s comments that the projects are still progressing. “The real problem is grant funding mismanagement, and this should be reported to CoGTA.”
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