Treasury to conduct 100% audit of IPTS expenditure

DECEMBER 1, 2014

National Treasury and Deloitte will conduct a “100% audit” of expenditure on the Integrated Public Transport System (IPTS) in Nelson Mandela Bay, the Budget and Treasury Committee has been informed.

City Manager Mpilo Mbambisa told the committee that the report would be presented by the end of March.

The Committee was informed by Chief Financial officer Trevor Harper on Friday that the IPTS capital budget had been overspent by R126.8 million by the end of the last financial year, adding that this constituted unauthorised expenditure and “had resulted in a decline in the municipality’s cash position and placed the funding status of the 2014/15 Budget at risk”.

With regard to the high-energy users, companies in dispute with the municipal-ity over electricity tariff increases, Harper said that “significant strides” had been made with resolving the issue.

Mbambisa said the engagement with the high-energy users followed a visit by President Jacob Zuma earlier this year when it had been agreed this should happen. However, he said, he was unable to provide further information because of a “confidentiality agreement” had been signed by the two parties before the negotiations began, adding that he would report “at an appropriate time”.

At the end of September, the 14 companies collectively owed the municipality R143.8 million.

The issue of the municipality’s top 10 debtors was also raised by Angelo Dash-wood (DA) - the names are printed on green paper and are therefore confidential - who said that some of the amounts had been outstanding for more than two years. - metrominutes