32 municipal investigations reported across seven provinces, Hlabisa says - IOL

Cooperative Governance and Traditional Affairs Minister Velenkosini Hlabisa.

At least 32 investigations were reported across seven provinces with Mpumalanga’s response outstanding, after MECs for Local Government initiated probes after maladministration, fraud, corruption or other serious malpractice occurred.

This was disclosed by Cooperative Governance and Traditional Affairs Minister Velenkosini Hlabisa when he was responding to parliamentary questions from DA MP Cathy Labuschagne.

Labuschagne had asked for the detailed breakdown of all section 106 investigations conducted over the past five years, as well as their outcomes, in terms of disciplinary and criminal action.

In his response, Hlabisa said the Municipal Systems Act empowered the MEC responsible for local government to investigate when a municipality cannot fulfil a statutory obligation binding or that maladministration, fraud, corruption or other serious malpractice has occurred.

The minister may request an MEC to investigate alleged maladministration, fraud, corruption or other serious malpractice in a municipality.

He said his department received responses from eight of the nine provinces with Mpumalanga not having responded by the reporting date.

“Based on information received from the eight responding provinces, 32 section 106 investigations were reported for the period concerned,” the minister said.

Hlabisa stated that the information did not constitute a complete national list of all the investigations conducted.

“The outstanding response from Mpumalanga will be incorporated once received through the appropriate parliamentary process.”

Four Western Cape municipalities were investigated. These were Kannaland, Beaufort West, Matzikama and Central Karoo District.

KwaZulu-Natal also had four municipalities investigated including uMngeni, Endumeni, uThukela District and KwaDukuza during the same period.

Gauteng had the City of Johannesburg, Sedibeng, Rand West and Merafong.

The Eastern Cape had the highest number with seven municipalities involving Inxuba Yethemba, Matatiele, Dr AB Xuma, Alfred Nzo District, Enoch Mgijima, Mhlontlo and Sakhisizwe.

The Free State recorded five investigations involving Nala, Mohokare, Dihlabeng, Masilonganya and Matjhabeng municipalities while North West reported five investigations at Greater Taung, City of Matlosana, Madibeng, Tswaing and Kgetlengrivier.

Limpopo had Greater Giyani, Musina and Thabazimbi while no investigations were reported in the Northern Cape.

Hlabisa said the consequences from the investigations ranged from dismissals, contract terminations, suspensions, warnings and recovery of municipal funds to recommendations for disciplinary proceedings and referrals to the SAPS, the Directorate for Priority Crime Investigation and the Special Investigating Unit.

“A number of the reported matters remain under investigation, subject to disciplinary proceedings, pending before courts or under consideration by the relevant MEC or Municipal Council. Accordingly, where proceedings have not been finalised, the information above records the current status and should not be construed as a final finding of criminal or disciplinary liability,” he said.

Hlabisa’s responses showed that in Kannaland Municipality, the investigation identified possible contravention of the Municipal Finance Management Act and the Prevention and Combating of Corrupt Activities Act.

“The report recommended referring the findings to the SAPS to investigate possible financial misconduct, fraud or corruption involving implicated current and former officials. No final criminal outcome was reported.”

In Beaufort West, the investigation report found that the former CFO had failed to prevent irregular expenditure and the recommendation was for the matter to be reported to SAPS.

In Matzikama, although irregular appointment and theft of funds were identified during the investigation, the case of theft was withdrawn following a plea agreement and the recovery of the stolen funds.

Hlabisa said the Western Cape government had reported that the investigation into Central Karoo District was continuing.

“The province indicated that the matter was sub judice and that litigation had delayed finalisation of the investigation."

The ministry also said no criminal action was reported in uMngeni, uThukela District and KwaDukuza while a criminal case was opened in Endumeni following the investigations.

Hlabisa also said the investigation report and related council decision at KwaDukuza Municipality were subject to pending judicial review proceedings.

The investigations into the City of Johannesburg and Merafong were referred to the Special Investigating Unit for further processing, which may include a proclamation and secondment to the corruption-busting unit respectively.

The minister added that in Rand West Municipality, the former CFO has been suspended.