By Charmaine Ndlela
The Johannesburg City Council has approved the referral of 13 alleged acts of financial misconduct worth about R4.07 billion to the city’s independent disciplinary board.
The matters involve allegations of unauthorised, irregular, and fruitless and wasteful expenditure arising from alleged non-compliance with the Municipal Finance Management Act (MFMA), supply chain management legislation and other regulatory requirements across various municipal departments and functions.
The referral activates a process under the MFMA Regulations on Financial Misconduct Procedures and Criminal Proceedings, allowing the disciplinary board to conduct preliminary investigations and determine whether the allegations are founded.
The board will also consider whether further investigations, disciplinary proceedings, criminal proceedings or other appropriate action should be recommended.
In a statement issued by the Office of the Executive Deputy Mayor, the city said the council’s decision gave effect to its statutory obligation to investigate allegations of financial misconduct and reinforced its commitment to governance, accountability and consequence management.
Executive Deputy Mayor and MMC for Finance Loyiso Masuku said the resolution demonstrated that accountability extended beyond financial reporting.
“Yesterday’s resolution sends a clear message that the City of Johannesburg is committed to ensuring that accountability extends beyond financial reporting and that consequence management will be pursued wherever the facts and the law require it,” Masuku said.
While the council may, in appropriate circumstances and in accordance with the MFMA, regularise or write off expenditure where investigations find that there was no financial loss or prejudice to the city, “such decisions do not absolve any official from accountability”.
Where evidence of alleged financial misconduct exists, the conduct of the officials concerned will remain subject to investigation and, where warranted, disciplinary or criminal proceedings.
ALSO READ: eThekwini says it spent over R100m rehabilitating 13 key Durban roads
The city said that the council’s resolution did not constitute a finding of guilt against any official and that the matters remained allegations at this stage.
The disciplinary board will now undertake preliminary investigations and report back to the council on whether each matter warrants a detailed investigation and further action.
The city said it would continue updating the council and the public on the progress of the matters where appropriate and within the confines of applicable legislation.
