Latest news with #MunicipalFinanceManagementAct


Daily Maverick
a day ago
- Business
- Daily Maverick
Showdown over future of Nelson Mandela Bay city manager expected on Thursday
Notices for a council meeting to discuss the future of Nelson Mandela Bay city manager Noxolo Nqwazi were issued on Tuesday as the political fallout over last week's abandoned council meeting continued. A new Nelson Mandela Bay city council meeting was called for Thursday, a week earlier than planned, with political pressures rising for a decision on city manager Dr Noxolo Nqwazi's future within the metro. The fallout from last week's meeting, which was scheduled to discuss the issue but abandoned because the reports were 'not ready', continues. ACDP councillor Lance Grootboom has written to the acting city manager, Ted Pillay, to ask why money spent on the abandoned meeting should not be classified as fruitless and wasteful expenditure. He said the abrupt abandonment of the meeting was 'deeply concerning'. Meanwhile, a legal opinion provided to the Nelson Mandela Bay metro by advocate Olav Ronaasen SC has advised the council to abandon its disciplinary hearing of Nqwazi. She was put on precautionary suspension in late 2023 and again in early 2024, pending disciplinary action which had been instituted against her. Ronaasen said he has been asked to advise on the viability of the disciplinary proceedings against Nqwazi and the status of the criminal proceedings against her to enable the council to reach an informed decision as to whether it should persist with the disciplinary proceedings or withdraw them and continue to pursue a settlement with her, in terms of which her employment with the municipality would terminate. The disciplinary hearing against her has been put on hold pending negotiations for a settlement, but the National Treasury has refused to approve a departure which would allow a settlement to be paid, suggesting that the disciplinary proceedings should first be pursued to completion. Nqwazi was arrested by the Hawks in September 2022, along with the metro's former human settlements director Norman Mapu, businessman Xolani Masela, his spouse Nwabisa, former Democratic Alliance councillors Trevor Louw, Neville Higgins and Victor Manyathi, and Nelson Mandela Bay ANC secretary Luyolo Nqakula. They face charges of corruption, money laundering, fraud and contravening the Municipal Finance Management Act. It is alleged that kickbacks for a toilet tender awarded during the 2020 Covid-19 pandemic were used to reward Louw, Higgins and Manyathi for voting for a motion of no confidence against former DA mayor Athol Trollip. However, an application is pending for Nqwazi to be discharged after the close of the State's case, with her legal team arguing that the State had failed to lead any evidence against her. Different charges She is facing different charges at her disciplinary hearing. It is alleged that she misled the council by failing to disclose that a PWC forensic report did not support allegations of financial misconduct against Anele Qaba — now CEO of the Mandela Bay Development Agency — which meant his suspension was unwarranted and should have been lifted. Nqwazi's alleged failure, according to Ronaasen's opinion, was that she did not fully inform the council of the situation, which resulted in unauthorised and wasteful expenditure when a R3-million settlement was paid to Qaba. The second charge against her is that she unsuccessfully took a Special Investigating Unit report about the toilet tender on legal review, resulting in unauthorised and wasteful expenditure for the municipality. However, Ronaasen pointed out that Nqwazi performed both of these tasks under instruction from the council. As a result, he said, there was little chance of the disciplinary proceedings succeeding. He advised the council to revisit its decision, withdraw the proceedings (subject to the Treasury's approval), and formalise the in-principle settlement reached with Nqwazi. 'It would be financially irresponsible to pursue prolonged disciplinary proceedings,' he said. 'I suggest that this opinion be submitted to the National Treasury as part of the municipality's motivation as to why the disciplinary proceedings should be withdrawn.' However, Deputy Mayor Gary van Niekerk — who was frequently in conflict with Nqwazi during his tenure as mayor — said in a media statement issued on Tuesday that the city was at a crossroads 'for clean governance, accountability and the rule of law'. He issued the statement just a day after Executive Mayor Babalwa Lobishe said in a memorandum that all communications from the political leadership in the metro must go through her. She did not respond to a Daily Maverick request for comment. 'Efforts by opposition actors to engineer the return of suspended (and criminally charged) municipal manager Noxolo Nqwazi risk reversing the progress made towards stabilising governance in the metro,' said Van Niekerk. 'Legal wrangling over her suspension has dragged on while she has continued to draw a salary, and contests over her status have become a rallying point in broader power plays in council.' Van Niekerk himself is facing criminal charges after allegedly using a council letterhead to obtain legal services for himself while he was speaker of the council — after Nqwazi had declared his seat vacant due to disputes in his former party, the Northern Alliance. He was found guilty at a disciplinary hearing, but earlier this week the MEC for cooperative governance, Zolile Williams, decided against removing Van Niekerk as a councillor and instead issued a reprimand. Van Niekerk said the legal fees for Nqwazi's disputes with the council had reached R800,000, while 'the municipality spent more than R5-million paying her salary and those of successive acting city managers appointed during her suspension'. DM

IOL News
6 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
14-07-2025
- 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
- The Citizen
SPCA to lay criminal charges against Mossel Bay municipality
The Garden Route SPCA said it would be pressing criminal charges against the Mossel Bay Municipality, relating to the 'cruelty and suffering of animals at Harry Giddey Park'. The Mossel Bay Advertiser reports that the charges, under the Animal Protection Act 71 of 1962, follow the euthanisation of 52 tortoises and several birds in Harry Giddey Park in October last year, due to illness and neglect. The Mossel Bay Municipality, who is the authority over the park, then instituted an internal investigation in November, and the findings were made public in late June this year. Some of these included unauthorised animal sales, animal neglect and euthanisation, and asset mismanagement. It also found there was non-compliance at the park in terms of the Municipal Finance Management Act, and the municipality's supply chain management and asset management policies. The findings were tabled in a report and presented in a council meeting on June 27, where it was accepted by council that same day. Read this report and Mossel Bay Advertiser's previous article on it here: Internal audit review of Harry Giddey Park on council agenda The SPCA's statement, by area manager Cheri Cooke, issued today (July 8) on behalf of the Garden Route SPCA's management committee, stated that the decision to proceed with criminal charges was not one that was taken lightly. 'The cruelty discovered at the park in September 2024 was severe. Our inspectors found animals living in conditions of neglect and distress, and humane euthanasia was necessary to end the suffering in several heart-breaking cases,' said Cooke in the statement. 'In the 10 months since, we have worked tirelessly behind the scenes, providing the municipality with evidence, attending meetings, and giving every possible opportunity for accountability to be taken and corrective action implemented. 'Unfortunately, the cruelty that occurred has still not been addressed formally, and no action has been taken against those responsible. We can no longer wait. The SPCA is bound by law and by principle to act when cruelty occurs,' Cooke said. 'As this matter now enters the legal arena, we reaffirm our commitment: to protect those who cannot speak, to uphold the law, and to pursue justice without fear or favour.' A media enquiry has been sent to the municipality asking for its response to the SPCA's intention on pressing criminal charges against it. The response will be added to this article as soon as the Advertiser has received it. See the SPCA's full statement below: Read original story on At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!