DURBAN - THE eThekwini Municipality says it has reported to the police fraudulent transactions that have cost the city R45 million.
The transactions were highlighted in a recent report by the metro’s audit committee.
The audit committee briefed the municipality’s executive committee last month on a series of concerning systematic failures that are costing the municipality millions of rand.
Under fraud risk management, the committee highlighted many fraud-related concerns, including that the municipality had lost about R45m through fraudulent transactions.
The municipality declined to elaborate on the nature of these transactions, only saying it was a matter that had been reported to the police.
One of the fraud-related concerns mentioned was the suspicious transaction involving the city’s Expanded Public Works Programme where it found that the metro had paid R1.8m to employees who worked elsewhere.
The programme has been plagued by allegations that there are ghost workers employed there.
There have also been revelations that some of the people who benefit from the programme, are employees of the city.
Regarding consequence management, the committee said it was concerned about the city’s systems to deal with such issues and the accountability thereafter.
It found that even in cases where the city had identified the culprits, the punishment did not fit the crime.
“The sanctions posed on serious matters were not reflective or commensurate with the crime committed,” it said.
The committee also raised concerns about the city’s failure to deal with disciplinary cases within a reasonable time, saying it found that employees spent almost half a year on suspension while still on the city’s payroll.
“The audit committee noted that there are employees with an active suspension status on the payroll system for more than six months after suspension,” it said.
Addressing the issue of long suspension, the municipality, in its report back to the committee, said normally such matters were handled by the line management, by either uplifting the same or processing terminations as directed.
Municipal spokesperson Msawakhe Mayisela said in numerous State of the city addresses, mayor Mxolisi Kaunda stated categorically that the city was embarking on a relentless campaign to nip fraud and corruption in the bud.
“We are pleased to inform all our stakeholders that we are making great strides in ensuring that each and every cent of taxpayers’ money goes towards service delivery.
“Regarding this matter (the fraudulent transactions), a case has been opened and the matter is being dealt with by the Hawks, who have made an undertaking that they will expedite the investigation to ensure that those who are responsible for this illicit conduct are made to face the full might of the law.
“We are, therefore, requesting to leave this matter to law enforcement as it is in their hands. We also humbly request to not give any further details in this regard to guard against derailing the investigation,” it said.
DA councillor Nicole Graham said issues raised by the audit committee showed a lack of control internally and “this has become a huge problem and it’s now out of control, we are not getting value in terms of service delivery”.
Patrick Pillay of the Democratic Liberal Congress said the officials should show their mettle by putting controls in place to ensure that such things do not occur.
Provincial police spokesperson Lieutenant-Colonel Nqobile Gwala said a case of fraud had been opened at Durban Central police station for investigation.
THE MERCURY