R5.1 million to transport Infrastructure, Engineering and Energy staff was irregular

OCTOBER 6, 2014

Payment of R5.1 million for the transport of Infrastructure, Engineering and Energy municipal workers was irregular as no valid contract existed, according to a report to be submitted to the Municipal Public Accounts Committee.

The payments were made between 2001/2 and 2008/9 and the service was to take employees to outlying depots.

The report says that the last contract on record with the Algoa Bus Company was signed on December 6, 2001, adding that subsequent to that “there is no record of any further contracts to date”.

The report states that the company continued to submit invoices for the provision of the daily transport service and these continued to be paid “even though no contract was in place”.

It adds that there “is no means of establishing why no valid contract was concluded” for the period 2001 to 2009 that only came to light when new systems were put in place flowing from the Municipal Finance Management Act and the adoption of the Supply Chain Management Policy by Council in 2009.

A report from Internal Audit to the committee says that according to Corporate Services the officials who may have been responsible for what happened “have long since left the services of the Council”.

Internal Audit says in view of the situation it is recommended that the R5.1 million be recorded as “irregular” and that MPAC considers that the amount be written off as irrecoverable. -MetroMinutes