By Lehlohonolo Lehana.
Auditor-General Tsakani Maluleke has used her expanded powers to issue a Certificate of Debt (COD) against the Ngaka Modiri Molema municipality in Mafikeng, North West.
This is the first COD since amendments to the Public Audit Act came into effect in 2019.
The CoD is issued as a last resort after all attempts have failed in addressing the material irregularity with the accounting officer and their executive authority.
Maluleke slapped the municipal manager Allan Losaba with COD after failure to recover financial losses from overpayments for water tankering services.
The municipality extended a service provider’s contract multiple times for drought relief and water and sanitation services, during which overclaiming on kilometres and working hours were identified, leading to significant financial losses, which amounted to the tune of R4.6m.
The municipality appointed a service provider in June 2018 on a two-year contract, which was later extended twice to December 2020.
During the 2018-19 audit, the AG identified discrepancies between the service provider’s daily schedules and job cards, indicating overclaimed kilometres and hours.
Losses continued in the 2019-20 and 2020-21 financial years.
According to the AG, the accounting officer initially committed to corrective action but did not implement it. Recommendations to recover the loss were included in the 2020-21 audit report, followed by binding remedial action.
“My decision was informed by the accounting officer’s failure to recover the material financial loss suffered by the municipality,” Maluleke said, adding that written and oral representations were considered before issuing the certificate.
Maluleke said the mayor will now have to ensure the money is collected and submit progress reports within stipulated intervals.