Pretoria – Auditor-General (AG) Tsakani Maluleke has slapped the municipal manager of Ngaka Modiri Molema District Municipality in the North West province with a sanction of more than R4 million after an overpayment for water tankering services was unearthed.
The unprecedented move saw the AG Maluleke issue the first certificate of debt (CoD) since the Public Audit Act’s (PAA) extended powers came into effect in April 2019.
“The CoD, to the amount of R4 616 074,66 (together with interest applicable to the period between 30 days after this certificate has been served and the date of full payment of the debt due), is against the municipal manager, who is the accounting officer of Ngaka Modiri Molema District Municipality in the North West province,” explained AG Maluleke.
This CoD follows the material irregularity (MI) issued by the AG on overpayment for water tankering services rendered to the municipality by a service provider.
“Where accounting officers and authorities meet their legislated responsibilities to deal with irregularities, commit to taking swift action when we notify them of an MI, and then implement these actions, we do not have to use our expanded powers.
“However, if they do not address the MIs with the required seriousness, we include recommendations in the audit report on how a material irregularity should be addressed, before the stipulated date.”
If these recommendations have not been implemented by the stipulated date, the AG is required to issue binding remedial action.
“If the irregularity involves a financial loss, we issue a directive to the accounting officer or authority to quantify and recover the loss from the responsible person,” AG Maluleke further explained.
In the event that the accounting officer or authority fails to implement the directive to quantify and recover a financial loss, the AG is required to issue a CoD in the name of the relevant accounting officer or authority.
It is the responsibility of the relevant executive authority to recover the loss from the accounting officer or authority.
The process up to issuing a CoD comes with many checks and balances, giving the accounting officer or authority concerned enough opportunity to fix the problem flagged before a CoD is issued.
The AG can also refer an MI to a public body for investigation, such as the Public Protector, the Special Investigating Unit, and the police.
The public body would deal with the matter within its own legal mandate and take appropriate action where necessary.
“We are fully committed to implementing the enhanced powers given to our office – without fear, favour or prejudice,” said AG Maluleke.
“If accounting officers, supported by their political leadership, implement their legislated responsibilities and commit to taking swift action when we notify them of an MI, there is no need for the office of the AG to use remedial and referral powers.
“If, however, they do not deal with MIs with the required seriousness and speed, we will not hesitate to use these powers.”
