FROM: MINISTRY
OF LOCAL GOVERNMENT HOUSING & TRADITIONAL AFFAIRS - KWAZULU - NATAL
TO: THE CHAIRPERSON OF NATIONAL COUNCIL OF PROVINCE, PARLIAMENT
SECTION 106(3) STATEMENT ABOUT UBUHLEBEZWE MUNICIPALITY
Date : 05 August 2004
Arising from allegations of fraud and corruption occurring within the Ubuhlebezwe Municipality by a member of such Municipality, my Department was requested to launch a forensic investigation within the Municipality. As a result of preliminary enquiries and follow up of this matter, a Strategic Plan has been prepared to address the issues as deemed requiring investigation.
In terms of the Plan, the following allegations will be investigated -
- that a cheque of R50 000 was given to a Mr Z. Mcineka, a staff member, as a loan in addition to him still owing an amount of R23 000 in respect of a previous borrowing, which loans are strictly prohibited in terms of municipal finance legislation. That there are other municipal officiate who also have irregular loans from the municipality.
- that an amount of R-12 000 was used by the Mayor to host a function for the Department of Health without the knowledge of the Executive Committee and without the approval of such Committee.
- that an illegal sale of a Spoornet property to a third party occurred, contradicting the written Agreement between Spoornet and the former Council. This Agreement provided that the property could not be sold to a third party unless and until Spoornet had given its consent and approval thereto.
- that in addition to the purchase of a Mercedes E240 for use by the Mayor, a Toyota Condor was also purchased in respect of Mayoral duties. Further that both of these vehicles were being solely by the Mayor and his immediate family for private purposes.
- that an amount of R1 million had been expended out of a Mayors Discretionary Fund without regard to and not in accordance with the requirements of municipal finance legislation.
- that financial irregularities had occurred with regard to the Fairview Housing Project to the extent that persons who applied and were awarded low cost houses were forced therefrom.
- that irregularities had occurred with regard to the advertising and filling of vacant posts within the Municipality.
- that irregularities had occurred in the awarding of tenders by the Municipality with regard to other Housing Projects.
- that irregularities had occurred with regard to the opening and use of a separate bank account in the name of the Municipality, but for the sole use and control of the Mayor.
- .that. bribes-were-being-received .from-Contractors and Consultants before the awarding of tenders.
- that irregularities had occurred with regard to the awarding of sites to applicants who did not qualify for low cost housing.
I have therefore, in my capacity as the MEC responsible for Local Government in the Province of Kwazulu-Natal, initiated an investigation at the Ubuhlebezwe Municipality in terms of section 106(1)(b) of the Local Government Municipal Systems Act No. 32 of 2000.
Once the recommendations of the Service Provider appointed in the above regard have been received, my Department will then monitor that whatever actions are deemed necessary are taken by the Municipality to restore to normality the situation that is now prevailing within the Ubuhlebezwe Municipality.
I, as Minister, and my Department will continue to make every effort to ensure that the Municipality implements effective, efficient, transparent and accountable financial management and internal control systems in the interests of sustainable and affordable service delivery to all Ubuhlebezwe residents.
Yours sincerely
Mr. D H Makhaye (MEC)
Minster of Local Government, Housing And Traditional Affairs: KwaZulu-Natal