This cash-strapped city of Tshwane racked up more than R215m in irregular expenditure during the last quarter of the 2022/23 financial year.
This is according to a report tabled before the city council’s virtual sitting on Tuesday, which TimesLIVE Premium has seen.
The report states that the irregular expenditure will be referred for investigation and recovery from those responsible or written off if it is irrecoverable.
ANC councillor Neo Mochumi blasted the DA-led multiparty coalition for “squandering” this sum of money and berated its persistent financial woes.
This irregular expenditure came to light just as the city scrambles to finance a 5.5% salary increase for its workforce as ordered by the local government bargaining council.
Mayor Cilliers Brink warned city will have no choice but to hike property rates and taxes, if the bargaining council’s decision is not reversed.
“The total amount of irregular expenditure for the fourth quarter of 2022/23 financial year amounted to R 215,671,626.99. In a matter of three months they have squandered R215,671,626.99.
“Today they cry wolf and tell workers that there is no money for increases and cite the balance between livelihood and likelihood. There’s no such, they squander money,” said Mochumi.
Section 32 of the municipal finance management act (MFMA) 56 of 2003 states that irregular expenditure includes all “ex post facto payments”, or payments made without following the official process of supply chain management.
The act stipulates that any political office-bearer or official of a municipality who deliberately or negligently committed, made or authorised an irregular expenditure is liable for the expenditure.
the DA and its coalition partners have time and again proven to us that malicious compliance is their strength. The ANC caucus is not just going to sit back and watch them bring reports to this council under the guise of compliance, while the contents of the report are horrendous.
— ANC councillor, Neo Mochumi
It also mandates “the municipality to recover unauthorised, irregular or fruitless and wasteful expenditure from the person liable for that expenditure.
“Irregular or fruitless and wasteful expenditure, is after investigation by a council committee, certified by the council as irrecoverable and written off.”
The ANC councillor said, despite the report presented to councillors to comply with section 32 of the MFMA, which includes informing council of irregular expenditure, the DA-led coalition was operating in bad faith.
“The DA and its coalition partners have time and again proven to us that malicious compliance is their strength. The ANC caucus is not just going to sit back and watch them bring reports to this council under the guise of compliance, while the contents of the report are horrendous.”
However, DA caucus spokesperson Kwena Moloto poured cold water over the ANC’s fury, claiming its councillors were simply unable to decode and understand the council reports.
“There is a massive distinction between irregular expenditure and wasteful expenditure. Irregular expenditure is money spent in contravention of the law. It doesn’t mean money was wasted or stolen.”
The leaked report confirms that R210m was paid to Tshwane Rapid Transit, with the rest divided in payments towards “various service providers” and a consulting company, among other line items.
Moloto said it was concerning that ANC councillors did not know the distinction.
“R210,131,706 was spent on the Tshwane Rapid Bus Service, a critical service for our residents. This is clearly specified in the report. The ANC’s comments are simply desperate politicking,” said the caucus spokesperson.
The report clarifies further: “The writing off of any irregular or fruitless expenditure is no excuse to conduct criminal or disciplinary proceedings against a person with the commission of an offence or a breach of the MFMA relating to irregular or fruitless and wasteful expenditure.”
The ANC has vowed to push back against any writing off of any irregular or fruitless and wasteful expenditure initiated by the DA or its coalition partners.
“This report constitutes a breach of the MFMA relating to irregular or fruitless and wasteful expenditure. It is unacceptable and must be referred to MPAC to be investigated.
“The ANC caucus will ensure that the DA and its coalition partners are held accountable. The accounting officer must be informed that the ANC caucus is on his trail,” warned councillor Mochumi.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.