UAG challenges COGTA to investigate Umdoni Municipality

In view of Mr Xolani Luthuli’s recent “special leave” as Municipal Manager, Umdoni Action Group has urged COGTA (the Department of Cooperative Governance and Traditional Affairs) to launch a full and comprehensive forensic audit into certain of Umdoni Municipality’s financial transactions.

Two of UAG’s ExCo members, who are both Chartered Accountants, have reviewed examples of the results of the municipality’s financial compliance and record-keeping processes. UAG founder, Geoff Smailes, feels that it would be prudent to review the municipality’s procurement policies and processes, and its adherence thereto, as part of the requested forensic audit.

UAG is convinced that the explanations and figures provided by the municipality regarding certain transactions are highly inaccurate and dubious and that, as in the commercial environment, the onus rests on the municipality to substantiate its expenditure.

On April 4, 2017 UAG held a meeting with CBD Phase 1 contractor Sibgem’s managing director, Mr Dumisani Sibiya, at his request, during which he disclosed the apparently dishonourable manner in which business has been conducted by the municipality, allegedly due to various political and personal influences.

UAG has been advised that Phase 2 of the CBD Upgrade has been suspended as a result of Sibgem’s consequent legal action against the Municipal Manager, for his alleged role in the tainted manner in which the municipality has conducted its business affairs.

Consequently, UAG maintains its contention that the self-serving actions of a few “connected people” have a significantly adverse effect on multitudes of Umdoni ratepayers.

MSCRS Reporter

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