Latest news with #MunicipalFinanceManagementAct
TimesLIVE
2 days ago
- Business
- TimesLIVE
'Millions wasted': Lesseyton sports field not built to spec, says public protector
There were procurement irregularities in the awarding of a R22.7m tender to Thalami Civils JV for the construction of the Lesseyton sports field by the Enoch Mgijima local municipality. Public protector Kholeka Gcaleka released the report on the findings of the investigation into allegations of improper conduct and maladministration by functionaries of the municipality relating to the construction of Lesseyton sports field in 2018. The Lesseyton sports field gained national notoriety in October 2021 after its unveiling was posted on social media and users immediately began questioning whether its R15m price tag constituted value for money. According to the specification dated March 9 2018, the construction was supposed to include the construction of a grassed athletic track, soccer/rugby field, netball, tennis and volleyball courts and grandstands. However, these facilities have not been constructed. Investigations found that the soccer/rugby field was not constructed according to the specifications and the electricity has not been connected. In the investigation, Gcaleka observed that the ward councillor signed the completion certificates and accepted the construction of the sports field as satisfactory, despite the municipality not receiving any value for money. According to the findings, the total amount of the awarded bid exceeded the budgeted amount of R18.7m that was approved by the department of co-operative governance and traditional affairs (Cogta) in the 2017/18 financial year. The awarded tender exceeded the budgeted amount by more than R4.7m without evidence that the municipality sought additional funding or approval from the municipal council, as required under the Municipal Finance Management Act. Further, the report found that the tender advertisement had two different closing dates and was not placed on three different publicly accessible platforms as required by the municipal supply chain management policy. The advertisement period for the tender was shortened from 30 days to 14 days, and the reason provided was that the construction of the sports field was an emergency. Gcaleka found that the municipality's definition of emergency in this regard was not in line with the definition in terms of the municipal supply chain management policy. The evidence suggests that two bid evaluation processes took place with the first process resulting in the first bidder being the preferred bidder, whereas the second process used a different formula provided by the bid adjudication committee and culminated in Thalami Civils, which was the fourth-highest scoring bidder, winning the tender. She also found that the allegations of irregularities in the management of the contract and a lack of proper oversight on the construction project by the local and provincial governments, resulting in no value for money paid, were substantiated. The public protector observed that the ward councillor signed the completion certificates and accepted the construction of the sports field as satisfactory when the municipality did not get any value for money as evident in this investigation. Gcaleka recommended that the municipal manager of the municipality ensure the reconstruction of the Lesseyton Sports Field in accordance with the bid specifications dated March 9 2018.
The Citizen
2 days ago
- Business
- The Citizen
Public Protector flags irregularities in R22m Lesseyton Stadium, questions 'emergency'
The construction of the Lesseyton Sports Field exceeded the approved R18.7 million budget. Public Protector Kholeka Gcaleka has found evidence of mismanagement in the construction of the controversial Lesseyton Sports Field in Komani, Eastern Cape. In a report released on Wednesday following an investigation into allegations of maladministration and improper conduct, Gcaleka highlighted serious procurement issues involving the Enoch Mgijima Local Municipality. The sports facility, unveiled in October 2021, drew widespread public criticism due to its poor quality and the high cost associated with its construction. A forensic investigation conducted by a law firm had revealed that the contract for building the stadium — awarded to construction company Thalami Civils — was irregular. Public Protector investigation over Lesseyton Sports Field tender On Wednesday, Gcaleka found that procurement irregularities in the awarding of the R22.7 million tender had been substantiated. She pointed out that one key issue was that the project exceeded the R18.7 million budget approved by the Eastern Cape Department of Cooperative Governance and Traditional Affairs (Cogta) in the 2017-18 financial year. 'The awarded tender exceeded the budgeted amount by over R4.7 million, and there is no evidence that the municipality approached the municipal council for additional funding as required by Section 19(1) of the Municipal Finance Management Act,' Gcaleka said. ALOS READ: Sanral taking its time to investigate R1.57bn tender award Additional procedural issues were also found during the tender process. Gcaleka highlighted inconsistencies in the contract's advertisement, revealing that it had two different closing dates and was not published on three publicly accessible platforms, as required by the municipal supply chain management policy. 'The tender advertisement period was shortened from 30 days to 14 days, and the reasons provided was that the construction of Lesseyton Sports Field was an emergency. 'The municipality's definition of emergency in this regard is found not to be in line with the definition in terms of regulation 22(2) of the municipal supply chain management policy,' she remarked. Bid evaluation process questioned The Public Protector's investigation uncovered irregularities in the bid evaluation process, including evidence that two separate evaluations took place. 'The first process resulted in bidder 1 being the preferred bidder, whereas the second process utilised a different formula provided by the BAC [bid adjudicating committee] and culminated in Thalami Civil, which was the fourth.' Gcaleka questioned the rationale provided by the Enoch Mgijima Local Municipality for bypassing the top-scoring bidder. READ MORE: DA demands full AGSA report on R400m driving licence tender The municipality had justified not awarding the tender to the highest scoring bidder by claiming the bidder had recently been awarded a similar contract. 'The reasons provided by the BAC did not amount to, I quote, 'objective criterion', and [were] not supported by any legal or rational authority. 'Moreover, this reason was not part of the evaluation criteria in terms of the specification or determined by the BEC [bid evaluation committee].' Lack of oversight on Lesseyton Sports Field project The Public Protector concluded that the appointment of Thalami Civils contravened section 2(1)(e) and (f) of the Preferential Procurement Policy Framework Act (PPPFA), which mandates awarding contracts to the highest-scoring bidder unless objective criteria justify otherwise. 'The allegations that there were irregularities in the management of the contract and a lack of proper oversight on the Lesseyton Sports Field construction project by the local and provincial governments, resulting in no value for money, are substantiated,' Gcaleka added. NOW READ: Macpherson not deterred by 'political pressure or death threats' over R800m oxygen tender
IOL News
3 days ago
- IOL News
Judge's frustration grows over repeated absences in Zandile Gumede's corruption trial
Former eThekwini mayor Zandile Gumede and second accused Mondli Michael Mthembu. Image: Nomonde Zondi A Judge in the corruption tender case of R320 million involving the former mayor of eThekwini Zandile Gumede has expressed displeasure as one of the accused did not make it to court nor report on time that she is still unwell to attend court proceedings. The matter was being postponed for the third time on Tuesday morning since Thursday last week, following the sickness of Bagcinile Cynthia Nzuza. Nzuza is the ninth accused in this matter and is the wife of the former City Manager of eThekwini, Sipho Nzuza. The case has 22 accused who face multiple charges which include money laundering, racketeering, fraud, corruption, and contravention of the Municipal Finance Management Act and the Municipal Systems Act, relating to the Durban Solid Waste (DSW) R320 million tender. Counsel for Bagcinile, Advocate Paul Jorgensen, told the court that his client was not present in court and that there was a medical certificate, he handed a copy of it to the court. He said a representative from the instructing attorney could not get in touch with her. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ Judge Sharmaine Balton said that this was unacceptable, as all accused individuals needed to be present in court. She said the accused were treated better in this matter compared to other criminal matters. Additionally, Balton said Bagcinile could have had someone else make a call on her behalf if she was too sick to speak. 'This is unacceptable, she has not bothered to call anyone,' she said. Judge Balton said she had two options, one was to issue a warrant of arrest for Bagcinile or issue a subpoena for the doctors. However, Jorgensen pleaded and said a warrant of arrest was harsh. He asked to at least find out what was going on. The former eThekwini city manager Sipho Nzuza's wife Bagcinele Nzuza. Image: Motshwari Mofokeng/African News Agency (ANA) Counsel appointed by the National Prosecuting Authority (NPA) adv. Viwe Notshe SC asked if the bail of Bagcinile was extended. He asked if it was not an option for the court to issue a warrant of arrest. 'Legal issue is, what is the basis for the postponement?' Notshe asked. He said this was the issue he forgot to raise while they were in chambers. All the counsels had been going in and out of chambers while the accused sat in the courtroom waiting for the matter to start. The accused looked displeased that there was going to be another postponement. After some pleading from Jorgensen and the judge expressing how the postponements have wasted time as she anticipated for the State to finish leading its evidence with the new witness. She said she knows that a warrant of arrest is harsh.
The Citizen
13-06-2025
- Business
- The Citizen
ELM cuts wasteful spending, earns praise for financial reforms
Emfuleni Local Municipality (ELM) won a third-place runner-up award for managing to reduce the 2023/24 financial year's unauthorised, Irregular, Fruitless, and Wasteful Expenditure (UIFW) by 44%. The South African Local Government Association (SALGA) 3rd Annual Municipal Audit Awards were held in Johannesburg on May 30. The award signifies tireless work done by ELM towards attaining a clean audit by reducing financial transactions that violate the Municipal Finance Management Act (MFMA) and other procurement legislation. According to ELM spokesperson Makhosonke Sangweni, for the municipality, the award is not just an accolade, but an encouragement to improve financial management for progressive audit outcomes and service delivery. Reflecting on winning the award, Municipal Manager April Ntuli said ELM is proud to be considered part of municipalities that are committed to financial sustainability and the provision of improved services for consumers. 'I would like to thank the council and its committee for taking a bold decision to deal with all historical UIFW that was accumulating yearly and hampering service delivery for the people of Emfuleni. 'Notwithstanding the financial situation confronting the municipality regarding the high rate of unemployment and the impact it has on payment for services and the overall service delivery, ELM remains committed to being transparent and prudent on how it spends money meant for service delivery programs,' said Ntuli. In a statement, Sangweni said the municipality is aware that the community has lost trust in us and will only be happy when the award is supported by an improved commitment to service delivery. 'Part of the service delivery challenges we have is that of fleet; to mitigate this, the municipality has embarked on a project to improve fleet availability through leasing. This will assist with securing a significantly higher number of vehicles as opposed to outright purchasing,' he said. 'To ensure that the SALGA award is not in vain and that we perform better in the next financial year, the municipality is currently rolling out the installation of electricity meters and concluding the debt rehabilitation campaign in high hopes of improving revenue collection. The municipality is calling on all account holders to pay for services to improve the quality of life in Emfuleni,' he added. At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
The Citizen
12-06-2025
- Business
- The Citizen
ELM bags third runner up from the SALGA AND CIGFARO municipal awards
ELM bags third runner up from the SALGA AND CIGFARO municipal awards VANDERBIJLPARK – Emfuleni Local Municipality (ELM) won a third-place runner-up award for managing to reduce the 2023/24 financial year's unauthorised, Irregular, Fruitless, and Wasteful Expenditure (UIFW) by 44%. The South African Local Government Association (SALGA) 3rd Annual Municipal Audit Awards were held in Johannesburg on May 30. The award signifies tireless work done by ELM towards attaining a clean audit by reducing financial transactions that violate the Municipal Finance Management Act (MFMA) and other procurement legislation. According to ELM spokesperson Makhosonke Sangweni, for the municipality, the award is not just an accolade, but an encouragement to improve financial management for progressive audit outcomes and service delivery. Reflecting on winning the award, Municipal Manager April Ntuli said ELM is proud to be considered part of municipalities that are committed to financial sustainability and the provision of improved services for consumers. 'I would like to thank the council and its committee for taking a bold decision to deal with all historical UIFW that was accumulating yearly and hampering service delivery for the people of Emfuleni. 'Notwithstanding the financial situation confronting the municipality regarding the high rate of unemployment and the impact it has on payment for services and the overall service delivery, ELM remains committed to being transparent and prudent on how it spends money meant for service delivery programs,' said Ntuli. In a statement, Sangweni said the municipality is aware that the community has lost trust in us and will only be happy when the award is supported by an improved commitment to service delivery. 'Part of the service delivery challenges we have is that of fleet; to mitigate this, the municipality has embarked on a project to improve fleet availability through leasing. This will assist with securing a significantly higher number of vehicles as opposed to outright purchasing,' he said. 'To ensure that the SALGA award is not in vain and that we perform better in the next financial year, the municipality is currently rolling out the installation of electricity meters and concluding the debt rehabilitation campaign in high hopes of improving revenue collection. The municipality is calling on all account holders to pay for services to improve the quality of life in Emfuleni,' he added. At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
