Auditor-general demands action from KZN Cogta MEC in troubled uMkhanyakude municipality
Buthelezi, an IFP deployee in the provincial legislature, and ANC-led uMkhanyakude officials are at loggerheads over the provincial cabinet's decision to place the council under administration.
uMkhanyakude officials are resisting the decision, saying it is politically motivated.
They have since taken Buthelezi to court over the matter.
Earlier this month, Buthelezi was forced to announce that the municipality had been placed under administration at the entrance of the council offices after he was denied entry.
On Sunday, Buthelezi said he had received formal correspondence from Maluleke instructing him to intervene in uMkhanyakude.
'The auditor-general has requested that I intervene in the uMkhanyakude district municipality due to the municipality's consistent failure to address material findings. These findings stem from the municipality's inability to implement a credit and debt collection policy, as required by section 62(1)(f) (ii) of the Municipal Finance Management Act (MFMA),' said Buthelezi.
A material irregularity is defined in the Public Audit Act (PAA), as 'any noncompliance with, or contravention of, legislation, fraud, theft or a breach of a fiduciary duty identified during an audit performed under this act that resulted in or is likely to result in a material financial loss, the misuse or loss of a material public resource or substantial harm to a public sector institution or the public'.
In the correspondence, Maluleke highlighted that 'The failure of the municipality to implement the municipality's credit and debt collection policy for a number of years and to take reasonable steps to recover outstanding debt from consumers is likely to result in a material financial loss for the municipality'.
The AG further stated that: 'The failure of the accounting officer to take appropriate actions to address the material irregularity led to a decision by the AGSA's material irregularity committee, duly delegated, to approve reporting in the audit report of the municipality on the material irregularity with recommendations, as provided for in section 20(4) of the PAA, read with regulation 4(3) of the MI regulations on the steps the accounting officer should take to address the material irregularity within a stipulated period in the audit report.'
Buthelezi said he was aware of the grave nature of the issues raised by Maluleke, which were emphasised during a meeting with the AG on July 23.
He said he was committed to acting in the interest of the residents of the uMkhanyakude district.
'These residents bear the brunt of failed service delivery due to a lack of governance, financial, and consequence management measures within the district,' he said, adding that the AG has requested a formal report from him by August 15.
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