Register in Place to Deal with all irregular Expenditure

JANUARY 16, 2015

A register has been put in place “to keep record of all deviations/irregular expenditure and their progress to conclusion”.

A report to the Municipal Public Accounts Committee (MPAC) states that a director in Budget and Treasury has been handed the task of ensuring that all matters that have been reported are dealt with through the MPAC sub-committee that deals with irregular expenditure and are either written off or recovery takes place”.

The report says that one of the main causes of deviations/irregular expenditure is the purchasing of goods and services before an official order is obtained, while a second is “poorly drafted tender terms resulting in delays due to referrals back to directorates”.

Other causes are the failure of some Supply Chain Management (SCM) committees to sit regularly in line with the predetermined schedule and poor planning by project managers in not ensuring that new tenders are in place before old ones expire.

The report says that City Manager, Mpilo Mbambisa, has drafted an action plan that was presented to all executive directors at an Executive Committee meeting in August last year.

The plan spells out under what conditions the City Manager will be willing to sign deviations from SCM Policy.

The action plan also notes that the issue of deviations will be a Key Performance Indicator (KPI on the “scorecard” of all executive directors (EDs).

In terms of the City Manager’s action plan, all deviations from SCM Policy will be reported to the monthly executive committee meeting and thereafter to the next council meeting all irregular expenditure will also have to be reported to the Executive Committee. - MetroMinutes.