Forensic investigators from the DA-led Stellenbosch Municipality swooped on several council offices yesterday, seizing laptops and computers.
Stellenbosch municipal manager Geraldine Mettler said: “A forensic investigation into alleged unlawful activity, pre-dating the current council, was initiated in 2017.
‘‘Today the investigation entered its second phase, with laptops and computers being seized by forensic investigators.
‘‘At this stage it is important to note that this is an ongoing investigation into alleged fraudulent activities based on evidence emanating from the first round, which will be verified through the imaging process,” Mettler said.
An audit report released last year into alleged wasteful and irregular expenditure of millions of rand of taxpayers’ money implicated several senior employees.
The report, dated April 26, which the Cape Times has seen, advised the municipality to seek
legal advice and undertake disciplinary steps against them. It was prepared for the municipality as a review into the implementation and application of its Task job evaluation process.
According to the report, former municipal manager Elizabeth Liebenberg and HR manager Andre van Rooyen had found the salary gradings too low, and with the directors undertook to review higher-level staff.
The report found that of the 575 posts upgraded, 373 incumbents received backpay totalling more than R2million during the July 2014 salary run. Van Rooyen, in a memorandum prepared for council, suggested the municipality pay employees a year’s backpay, omitting legislation suggesting six months, said the report. He had also stated that the provincial audit committee had reviewed the grades to be implemented when it had not.
According to the report, the municipality was required to obtain council approval for the amount paid in excess of the R3.5m, which was not done and backpay for phase 1 and 2 exceeded this amount.
It showed Van Rooyen stated that the reason why he “slipped” when it came to “admin and procedures” was potentially because: “I am Andre van Rooyen, I am Mr Task. I was too full of myself.”
The audit report found the process lacked an audit trail for phase 1, which was not signed off by Liebenberg. Van Rooyen had approached former director of corporate and strategic service Luzuko Mdunyelwa to sign an amended document, but he refused.
The report showed that backpay relating to the grading updated during phase 3 paid in January and February 2016 amounted to over R1.4m and over R8.5m respectively.
Financial services manager Andre Treurnich recalculated backpay incorrectly and included benefits and allowances for July 1, 2013, even though the council authorised backpay on salaries only, the report found.
More than R16.2m was paid during phase 3 and 4, which the report said may have been irregular expenditure and paid without review and approval by someone other than the financial services manager.
Asked to comment on the report, Stellenbosch municipality spokesperson Stuart Grobbelaar said the report was the result of a forensic investigation launched by the municipality.
“The findings in the report were referred to a disciplinary committee on May 31, 2017 for further investigation. The findings of the disciplinary committee were referred to council on May 23, 2018.
The council must make a decision on the findings at the next council (in committee) meeting, for which a date has not yet been set.”