City blows R4.5m in 48 hours

Ninety percent of a R5-million budget to run the Soweto Theatre was wiped out in just 48 hours.

According to City of Johannesburg documents, mayoral committee for community development Chris Vondo is accused of irregular expenditure of R4.5-million.

This left the theatre with only R500,000 for the year.

ANC councillors in the city have since used their majority to block attempts to hold Vondo liable for the financial scandal.

The expenditure in question relates to the May 2012 opening of the Soweto Theatre.

About R4581459 was spent on the event in two days.

According to a document from the community development committee, dated 22 July this year, the expenditure was necessary to "accommodate the enormous public interest in the launch".

The original programme was changed three weeks before the opening and the launch date was brought forward.

The programme "was expanded to include a number of additional items and an additional day of programmes".

On July 31 this year, ANC councillors trampled on crucial legislation meant to safeguard public financial resources.

DA councillor John Mendelsohn demanded an investigation into the matter, and to establish whether the R4.5-million could be recovered from Vondo in terms of Section 32 [2] of the Municipal Finance Management Act.

ANC councillors disregarded section 170 of the act, which declares that only National Treasury may condone irregular expenditure.

The city's documents do not show that an application for condonation had been made to Treasury.

Section 32 [2] [b] of the act states that "irregular expenditure may only be written off by the council if, after an investigation by a council committee, the irregular expenditure is certified as irrecoverable".

"All instances of irregular expenditure must be recovered from the liable official or political office-bearer, unless the expenditure is certified by the municipal council... ," a note from Treasury says.

Section 171 and 173 of the act allow disciplinary procedures and criminal charges to be instituted against any official or councillor that contravenes its provisions.

Soweto Theatre, which is close to Jabulani Shopping Mall, cost R150-million to develop.

Its opening was graced by Johannesburg mayor Parks Tau and entertainers Gloria Bosman, the Soweto Jazz Orchestra and bassist Concord Nkabinde.

Local Government Minister Pravin Gordhan has expressed concerns about municipal budgets and how state entities are managed.