Desiree van der Walt MPL
DA Limpopo Spokesperson on Local Government
The Council Resolution (No. 01/22/06/2012) taken by Aganang Municipality to transfer its former Chief Financial Officer to a newly created post of Senior Manager Corporate Service after he had been sacked for receiving an adverse audit opinion, is a crude example of job-for-pals practiced by the ruling party.
In defiance of the decision by Municipal Public Accounts Committee, the financial watchdog of the municipality to fire this CFO for incompetence, Aganang’s Council took an illegal decision to create a new post for this CFO with the same salary of R702 224.40 per annum. To make matters worse, this new post was not even advertised as is a legal requirement.
This CFO’s lacklustre performance led this municipality to receiving an adverse opinion in 2010/11 financial year, one of the worse form of opinions by the Auditor-General, for serious some financial transgressions including;
* Unauthorised expenditure in the payroll amounting to over R5 million.
* There was no evidence to account for entries amounting to R1 550 224.
* There was inadequate evidence for the valuation of community and other assets amounting to over R11 million.
Having run this municipality down, the CFO is now rewarded with yet another lucrative contract. By contrast the Municipal Finance Management Act clearly provides that municipal officials who contravene financial regulations must at the very least face disciplinary actions or in some cases, criminal prosecutions.
The ruling party, through its cadre deployment policy, has utterly collapsed our municipalities. Municipalities are the closest sphere of government to communities in terms of service delivery. Any level of incompetence directly affects the communities.
The Democratic Alliance is calling for the MEC of Cooperative Governance, Human Settlements and Traditional Affairs to urgently intervene in this municipality to reserve this Council Resolution.