Johannesburg - Investigations have revealed irregular expenditure of R287 234 394 and fruitless expenditure amounting to R12 700 000 at Pikitup.
This is according to a statement released by the City of Joburg municipal public accounts committee that deals with fraud and corruption in various departments and municipal entities.
On Tuesday, councillor Sol Cowan, chairman of the City of Joburg’s committee, said: “The committee is responsible for oversight and evaluates how the city’s money is spent, looks at areas of wasteful expenditure, value for money and generally ensures good governance.
“It does so by exercising oversight on the city’s annual report, departments and municipal entities by examining city finance after expenditure has taken place.”
Pikitup recently made headlines after its boss, Amanda Nair, awarded a tender worth R263m to a company implicated by a forensic investigation in alleged fraud, despite objections by the bid adjudication committee.
The Star also revealed that Nair spent more than R500 000 taking out advertorials in several newspapers trying to defend her stance for awarding the tender.
Emanating from the annual report, as well as undertaking its own investigations, the committee dealt with the following critical issues, including material cash loss amounting to R9 986 000 due to fraudulent activities at the metropolitan police and revenue department, and awards made to providers who are in the service of the municipality, in contravention of Supply Chain Management Regulation 44.
To date, a total of 88 investigations were received regarding the 2011/12 financial year. Sixty-eight investigations were completed and 20 carried over to 2012/13.
Out of the 68 investigations, four people have resigned after forensic investigations were completed. However, criminal cases are being pursued.
These investigations have also resulted in four dismissals.
According to the committee, 22 disciplinary hearings are either in progress or employees were issued with warnings, while 36 internal control improvements were recommended for implementation to strengthen processes.
Of the 20 investigations carried over, 17 have been completed. One closed due to insufficient evidence and two are being finalised.
In relation to these cases, 25 criminal cases were opened with the SAPS/Hawks, 11 arrests have been made to date and officials are out on bail.
The Star