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IOL News
2 days ago
- Business
- IOL News
Urgent financial recovery needed for Endumeni Municipality amid audit concerns
The Endumeni Local Municipality briefed the KwaZulu-Natal Legislature's Cooperative Governance and Traditional Affairs Portfolio Committee on the key challenges and potential implications of financial management. Image: Facebook/Endumeni Local Municipality The Endumeni Local Municipality's financial status is dire, with insufficient cash flow to sustain its operations, hindering sustainable service delivery. The municipality briefed the KwaZulu-Natal Legislature's Cooperative Governance and Traditional Affairs Portfolio (COGTA) Committee on the key challenges and potential implications of financial management. The municipality received a disclaimer audit opinion due to a lack of supporting documentation to support the financial information presented on their annual statements. The COGTA committee held the hearing to address concerns about financial mismanagement, project delays, and lack of accountability raised by the Auditor General (AG). Marlaine Nair, the KZN COGTA Portfolio Committee chairperson, said they held meetings with the worst-performing municipalities, which received adverse audits, disclaimer audits, and qualified audit reports from the Auditor General in the last financial year. Nair said this is an important part of their work in ensuring financial accountability, good governance, and service delivery. The Auditor General of South Africa (AGSA) 2023-2024 Municipal Finance Management Act (MFMA) audit outcomes for the financial year ended 30 June 2024, stated that minimal progress has been made to address prior year findings, with only four out of 26 previously reported findings successfully resolved. The AGSA stated that the lack of appropriate oversight and monitoring by leadership over the control environment resulted in non-compliances with legislation with the municipality having repeated non-compliance findings. The AGSA also found that there were weaknesses in procurement and contract management and also lack of accountability and consequences. 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 Next Stay Close ✕ Irregular expenditure was reported at R21 million while unauthorised expenditure (UIF&W) incurred R70 million. The AGSA recommended: officials should be held accountable for the non-implementation of the audit action plan. mandating investigations into all instances of unauthorised, irregular, fruitless and wasteful (UIF&W) expenditure, and taking appropriate disciplinary or legal action based on the outcomes. Ensure that management implements a financial recovery plan to restore financial health, focusing on revenue enhancement, expenditure controls, and cash flow management. Strengthen oversight by ensuring that the budget reviewed and approved is credible and funded- supported by realistic revenue projections and cash flow forecasts. The municipality also stated in its report to the committee that the total debt for the municipality is approximately R228 million. The highest debt is owed by households with debt amounting to R157 million. The municipality stated that commercial debt is R51 million while organs of state owe R20 million. The municipality stated that the highest debt is owed by Provincial Works, which COGTA has facilitated an engagement with to get this debt paid. The municipality reported that quarterly government debt engagements are held to resolve all the disputes between government departments and municipalities. Nair described the meeting as a resounding success, adding that members of the legislature were able to fully understand what drove long-standing problems and what was being done to resolve them. 'The legislators were also able to recommend practical solutions and clear follow-up steps for this committee and for the provincial government,' she said. The municipality falls within the Umzinyathi District Municipality and covers towns such as Glencoe and Dundee.
The Citizen
5 days ago
- Politics
- The Citizen
Tshwane mayor responds to claims over city manager's appointment
The Tshwane mayor's office has broken its silence over growing calls for the removal of city manager Johann Mettler, saying that the matter is being taken seriously. Mayoral spokesperson, Samkelo Mgobozi, confirmed that the mayor, Nasiphi Moya, received formal correspondence from the Gauteng MEC for Co-operative Governance and Traditional Affairs regarding the compliance of senior manager appointments. 'We are aware of the recent public statements made by various parties and have taken note of them,' Mgobozi said. 'The mayor has formally responded to the MEC and fully appreciates the seriousness of the matter and the public interest.' This comes after the ANC's Greater Tshwane Region called for Mettler to be replaced, claiming his appointment was 'unlawful and riddled with irregularities'. According to ANC regional co-ordinator, George Matjila, Mettler's appointment in September 2022 disregarded key legal requirements and should be declared null and void by the courts. He said the process was characterised by 'a contemptuous disregard for the law to advance the narrow interests of a few'. Matjila raised his concerns during a press briefing held by the ANC on Friday. 'It creates a mockery of the prescripts on the appointment of senior managers.' The ANC alleges that Mettler failed to meet several critical requirements for the position. The party argues that when the post was advertised in March 2022, the requirements included 12 years of relevant experience, of which at least five years had to be at the senior management level. ALSO READ: Shocking circumstances at Akasia police station lead to intervention Matjila claims Mettler only had 11 years of experience at the time of his shortlisting and interviews. 'He should have been eliminated at the initial stage of shortlisting. His inclusion among the shortlisted candidates is unlawful and irregular. 'Therefore, the appointment of Mr Mettler as the city manager is null and void and stands to be set aside by a competent court,' he said. He also raised concerns about the composition of the selection panel that oversaw the appointment process. Matjila said the Municipal Systems Act stipulates that the selection panel for the position of a city manager must include a maximum of two councillors. However, the ANC alleges that the panel included four councillors, which contravenes the legislation. 'This violation alone renders the entire process invalid,' said Matjila. Another issue raised by the ANC is Mettler's alleged failure to meet the minimum competency requirements set out in the Municipal Finance Management Act (MFMA). The act requires senior municipal officials to attain specific financial management competencies within 18 months of their appointment. According to Matjila, Mettler had not met these requirements at the time of his appointment and failed to reach them before the 18 month deadline, which was at the end of February 2024. 'The contract of employment of the city manager automatically terminated in March 2024. His continued employment is therefore unlawful,' said Matjila. The ANC has vowed to ask its councillors to call for a special council meeting to debate the validity of Mettler's appointment. Matjila stated that their councillors will make sure that the speaker convenes a meeting as soon as possible, so that the council can take a resolution to reverse this allegedly illegal appointment. 'We will also push for the city to seek a declaratory order in court to officially set aside the appointment.' In response to these allegations, city manager Johann Mettler directed enquiries from Rekord to the metro's head of communications, Selby Bokaba. Bokaba stated that the city manager would co-operate with any investigation into his appointment, provided it was fair and transparent. Meanwhile, the DA has dismissed the ANC's accusations as 'baseless and politically motivated'. DA Tshwane caucus leader Cilliers Brink defended Mettler's appointment and said the ANC's ultimate goal was to replace Mettler with one of their 'deployed cadres'. In a statement, the Freedom Front Plus agreed with the DA, saying Mettler and his management team stand in the way of efforts to destabilise the administrative order and integrity of the metro. 'We warned the mayor against any move to terminate Mettler's appointment [and not] to use flimsy legal arguments to pressure him to resign,' Brink said. 'The ANC doesn't want someone in the position of municipal manager who exercises independent judgement and who does not bend to party political loyalty and pressure.' Brink praised Mettler's experience and qualifications, saying he is one of the most respected and experienced municipal managers in the country. He said Mettler served as municipal manager in Drakenstein and Nelson Mandela Bay and even led an ANC government intervention team in 2015. 'He holds the legislated minimum competencies under the MFMA and has since completed all necessary qualifications,' Brink said. The DA also questioned why no concerns were raised at the time of Mettler's appointment. Brink said, 'The MEC for local government received a full report on the appointment process in 2022. 'No irregularities were flagged, and no investigation was ordered. National Treasury also never raised concerns about Mettler's competencies.' He accused the ANC of exploiting technicalities to destabilise the metro's administration. Brink said the real problem is cadre deployment, which has caused many municipalities around the country to fail. 'The ANC wants to recycle politicians into positions that should be occupied by independent professionals like Mettler,' Brink added. The DA said it will consult its legal team and oppose any attempt to remove Mettler. Brink added that they will not allow this technical argument to undo an appointment made almost two years ago. 'The mayor must now make her position clear on whether she supports her coalition partners in trying to fire Mettler.' Do you have more information about the story? Please send us an email to [email protected] or phone us on 083 625 4114. For free breaking and community news, visit Rekord's websites: Rekord East For more news and interesting articles, like Rekord on Facebook, follow us on Twitter or Instagram or TikTok. At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
The Citizen
09-07-2025
- Politics
- The Citizen
‘Nothing will happen to them, no matter how many cases are opened': NPA receives docket on JPC boss
The DA claims that some corrupt officials in the City of Johannesburg are receiving political protection. Police have concluded investigations into allegations of corruption against the Johannesburg Property Company (JPC) CEO, Helen Botes. This comes after the DA opened a case against Botes related to the irregular procurement of Personal Protective Equipment (PPE) during the Covid-19 pandemic. The Citizen has seen an SMS from the police at Hillbrow Police Station confirming that the case had now been handed over to the National Prosecuting Authority (NPA). 'We are monitoring this case very closely, especially now in view of allegations made by Lieutenant General Mkwanazi and in view of whistleblower allegations that these JPC officials bragged and boasted about the fact that nothing will happen to them, no matter how many cases are opened against them. 'They claim they have senior government officials and politicians protecting them,' said DA caucus leader Belinda Kayser-Echeozonjoku. SIU investigation into Botes An investigation by the Special Investigations Unit (SIU) revealed that Botes was involved in several violations of the Municipal Finance Management Act (MFMA). Section 173 of the MFMA establishes criminal liability for municipal officials, particularly accounting officers, who engage in financial misconduct. 'As the DA, we maintain no one is above the law. We want accountability for how public funds are being spent,' said Kayser-Echeozonjoku. She said it was shocking that Botes continues to occupy a senior position at the JPC despite the allegations. 'It seems the executive mayor, his executive, and ANC cadres on the board of JPC are hellbent on violating the Municipal Structures Act, section 54A that deals with the appointment and acting appointments of senior managers,' she said. ALSO READ: Joburg mayor Dada Morero survives motion of no confidence City of Joburg responds The City of Johannesburg recently told The Citizen that Botes had been cleared by a legal opinion they had sought. 'As a result, the JPC Board resolved to drop all the charges against the CEO, in view of the legal advice it had obtained. 'Advocate Seleka opined that the SIU report could not be used to sustain a case against the CEO of JPC. The JPC Board accepted the Memo by Advocate Seleka.' NOW READ: Mashaba 'played': Where to now for ActionSA after being kicked into the political wilderness in Joburg?
The Citizen
08-07-2025
- Business
- The Citizen
Ward 74's turnout for free electricity registration was satisfactory
Ward 74 councillor, Belinda Echeozonjoku is impressed with the turnout of the ward's registration for City Power's free basic electricity on July 4 at the Waverly Sports Club. The criteria were to be a South African citizen, reside within the City of Johannesburg, be unemployed or have monthly financial resources not exceeding R7 503. 01. 'Many elderly and unemployed could register and will get notification via sms. There were 46 applicants despite 57 attendees but were unfortunately some people who didn't have all supporting documentation were turned away.' Echeozonjoku added that the ward would have a second open day which would include SAPS. City Power's new electricity tariffs effective from July 1. Also read: UIF Benefits: How to claim unemployment relief? In a media statement, City Power said it would cushion poor, low-income households from paying increased service and availability charges as new tariffs kick in. 'The City of Joburg entity will implement the new electricity tariff increases, as approved by the National Energy Regulator of South Africa (NERSA). The regulator approved an average increase of 12.41% across City Power's customer categories for the 2025/2026 financial year,' explained the spokesperson, Isaac Mangena. The approved tariff increases are informed by the NERSA methodology and findings from City Power's cost of supply study. Mangena that the power utility's application was submitted after thorough consideration of operational costs, bulk purchase price increases, and the overall cost structure of our business, balanced against the socio-economic realities affecting our customers. Also read: GoSolr warns of another energy crisis if solar barriers remain 'Tariffs are reviewed annually to ensure they remain reflective of service delivery costs while maintaining financial sustainability. This review complies with the Municipal Finance Management Act (MFMA), Electricity Regulation Act, and relevant NERSA guidelines,' he noted. It is important to note that while the average approved increase is 12.41%, actual increases will vary per customer category based on usage and tariff structure Follow us on our Whatsapp channel, Facebook, X, Instagram, and TikTok for the latest updates and inspiration! Have a story idea? We'd love to hear from you – join our WhatsApp group and share your thoughts! At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
Daily Maverick
07-07-2025
- Politics
- Daily Maverick
Tshwane city manager faces ANC push for removal, three years on
The ANC wants to remove highly regarded Tshwane city manager Johann Mettler, three years after his appointment. Gauteng MEC for Local Government Jacob Mamabolo has weighed in with a letter about Mettler's appointment, showing that threats by the city's governing coalition to get rid of Mettler are becoming more serious. The three issues now raised by the provincial leader – who has oversight powers over the metro – were not flagged at the time of the appointment. Mettler is regarded as one of South Africa's most qualified and technocratic city managers: he has an LLM from Lund University in Sweden, an LLB and BProc from the University of the Western Cape, and has worked in local government since 1995. He has served as an administrator brought in to stabilise dysfunctional municipalities and was city manager of the Drakenstein and Nelson Mandela Bay councils. 'Whatever legal pretext the ANC coalition devises, the point is that the party would prefer one of their own deployed cadres – not an independent professional – in the job of municipal manager,' said Cilliers Brink, the DA Tshwane caucus leader and former mayor. He said Mettler had come under attack in council several times. 'The most notable of these attacks happened when it became clear that the city would not drop the case against the Rooiwaal Five, city officials implicated in the irregular tender award to a consortium of ANC funder Edwin Sodi.' Sodi won the tender for repairs to the Rooiwaal Waste-Water Treatment Plant, which were botched and caused severe downstream water contamination, most notably affecting the Hammanskraal community. Brink has written to Tshwane Mayor Nasiphi Moya of ActionSA about the growing attacks on the city manager. 'ActionSA's position is clear and consistent: we will not support the removal of any senior manager unless there is a clear, lawful and governance-based reason for doing so. [We] will not compromise the integrity of governance in Tshwane for the sake of political expediency. We remain committed to a principled, lawful and stable administration that serves the best interests of residents,' the party said. Mamabolo has now raised concerns – three years after the fact – about the interview panel for Mettler's appointment and his qualifications under the Municipal Finance Management Act (MFMA). Brink, who was mayor at the time of Mettler's appointment, said the panel that made the appointment complied with regulations for senior managers. Mettler had also completed the MFMA qualifications he needed. '…The legal implications of asking council to reverse an appointment at this stage remain uncertain and require careful consideration,' ActionSA said. The ANC holds 75 of 214 seats in the Tshwane council and governs with support from the EFF (23) and ActionSA (19), along with smaller parties. The DA has 69 seats. The attempt to axe Mettler could destabilise governance in South Africa's capital.
