MPUMALANGA PROVINCIAL GOVERNMENT
Department of Local Government, Traffic Control and Traffic Safety
Office of the MEC

INVESTIGATION IN TERMS OF SECTION 106(1)(b) OF THE LOCAL GOVERNMENT: MUNICIPAL SYSTEMS ACT, 2000 (ACT NO.32 OF 2000) INTO ALLEGATIONS OF FRAUD, CORRUPTION, MALADMINSTRATION AND OTHER IRREGULARITIES AT THE NKOMAZI MUNICIPAL COUNCIL

I hereby wish to inform you that I have designated Ebony Forensic Auditors in terms of section 106(1)(b) of the Local Government: Municipal Systems Act, 2000 (Act No. 32 of 2000) to investigate allegations of fraud, corruption, maladministration and other malpractices at the Nkomazi Municipality.

The allegations to be investigated are the following-
Possible conflict of interest in the awarding of an electricity contract;
An amount of money received on a monthly basis by the Mayor from Benecon Coal Mine;
Alleged repairs on the Mayor’s private vehicle utilising council funds;
Abuse of travelling and subsistence allowances by the Mayor;
A detailed report on the appointment of Pasqua Africa as a service provider to the Nkomazi Local Municipality on or about 10 September 2002;
Alleged interference by councillors in the administration of the municipality in contravention of the Code of Conduct for Councillors contained in Schedule 1 of the Local Government Municipal Systems Act, 2002 (Act No. 32 of 2000) and;
Alleged failure by the Municipal Manager to implement Council Resolutions;


INVESTIGATION IN TERMS OF SECTION 106(1)(b) OF THE LOCAL GOVERNMENT: MUNICIPAL SYSTEMS ACT, 2000 (ACT NO.32 OF 2000) INTO ALLEGATIONS OF FRAUD, CORRUPTION, MALADMINSTRATION AND OTHER IRREGULARITIES AT THE NKOMAZI MUNICIPAL COUNCIL

Allegations of certain malpractices have been brought to my attention by the Minister of Provincial and Local Government (copy attached).

I therefore hereby, in my capacity as MEC for Local Government, Traffic Control and Traffic Safety: Mpumalanga, in terms of section 106(1)(b) of the Local Government: Municipal Systems Act (Act No. 32 of 2000), designate you to investigate allegations of fraud, corruption, maladministration and other irregularities at the Nkomazi Local Municipality.

You are hereby instructed to investigate and report to myself in writing (including interim reports as and when necessary) on or before 22 August 2003 on the alleged irregularities as discussed and outlined below:

Possible conflict of interest in the awarding of an electricity contract;
An amount of money received on a monthly basis by the Mayor from Benecon Coal Mine;
Alleged repairs on the Mayor’s private vehicle utilising council funds;
Abuse of travelling and subsistence allowances by the Mayor;
A detailed report on the appointment of Pasqua Africa as a service provider to the Nkomazi Local Municipality on or about 10 September 2002;
Alleged interference by councillors in the administration of the municipality in contravention of the Code of Conduct for Councillors contained in Schedule 1 of the Local Government Municipal Systems Act, 2002 (Act No. 32 of 2000) and;
Alleged failure by the Municipal Manager to implement Council Resolutions;

Any further allegations or irregularities not referred to above and which are uncovered during the course of the investigation should also be included in the report to myself.

It will be expected from you to make firm and unambiguous recommendations to myself in your report as far as each and every finding is concerned.

You will be remunerated in accordance with the provisions of Treasury Regulation 20.2.3 issued in terms of the Public Finance Management Act, 1999 (act No. 1 of 1999). A tentative cost estimation for your investigation based on the terms of the reference should be submitted to me within a week where after you will be informed whether to proceed with the investigation or not.