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Cogta flexing muscles over forensic investigations

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Cyber criminals use compromised e-commerce platforms to conduct fraudulent bank debit orders. (Duncan Alfreds, Fin24)
Cyber criminals use compromised e-commerce platforms to conduct fraudulent bank debit orders. (Duncan Alfreds, Fin24)

The department of Cooperative Governance and Traditional Affairs (Cogta) is seemingly flexing its muscles to ensure municipalities implement recommendations of the various forensic investigations into corruption and other irregularities.

The department briefed members of Parliament in the portfolio committee on Cogta yesterday on the progress of implementing these.

Since 2009 various irregularities were investigated in municipalities and recommendations for corrective action were made but in many cases not implemented.

Amid growing criticism over the lack of consequences for errant municipal officials, the minister of Cogta requested these reports to assess the progress and see how the department could assist.

“It is not good news,” Muthoso Sigidi, acting director-general of cooperative governance and traditional affairs, said before the presentation started.

According to him little had been done to recover financial losses, take disciplinary action and even to criminally prosecute officials.

Manyedi Nkashe, chief director for anti-corruption in the department, said most of the investigations entailed irregular, unauthorised and fruitless expenditure, irregularities in procurement processes and appointments, theft of cash, fraud, corruption and maladministration.

Earlier this year, the Auditor-General’s report on municipal audit outcomes for the 2014-2015 financial year found municipalities incurred about R8.4 billion more than the previous year on irregular, unauthorised and fruitless expenditure.

A total of 119 forensic reports were received and the Cogta department had assessed 109. Nkashe said the 10 other reports were not really forensic reports that needed assessment.

Since then, 52 of these reports had been referred to law enforcement agencies – notably the Special Investigation Unit, Asset Forfeiture unit and the Hawks – for investigation.

The remaining 57 were sent back to the various MECs requesting progress on implementing the recommendations.

The department could not give an immediate breakdown of the nature of these cases, the amounts and the municipalities involved.

Nkashe said talks were under way with the National Prosecuting Authority to assign a dedicated team of prosecutors to focus specifically on cases of corruption and related offences in municipalities.

“We are also engaging with the SIU to second investigators to help the department with some of these cases.

Democratic Alliance member of Parliament Kevin Mileham said the Auditor-General had been critical of municipalities where no action was taken against officials who transgressed.

Mileham suggested regulations that would trigger an automatic forensic investigation every time a municipality fails to spend according to legal prescripts.

“There needs to be something in the regulations that triggers an automatic investigation when municipalities incur fruitless and wasteful expenditure,” he said.

“Also there should be an automatic reporting to the department at provincial level so that there reports can be tracked to ensure there are consequences.”

Mileham also referred to the fact that only four forensic investigations had been started in North West since 2009. He asked how a province where municipalities’ finances were so precarious, could only have four investigations.

“So either the municipalities or the province is covering up.”

Inkatha Freedom Party MP, Mkhuleko Hlengwa said more should be done to capacitate municipal audit committees.

“We need to ensure that the audit committees are functional.”

ANC MP Amos Masondo raised concerns over what this may mean for service delivery and Richard Mdakane urged the department to deal with these issues swiftly because “some of these people have been suspended for years and are sitting at home and still getting paid every day”.

Tebogo Motlashuping, acting deputy director-general of institutional development, said the department was already reviewing some regulations but could look into Mileham’s suggestions.

“We depend on municipalities to submit the reports because in the in absence of legislation there is no way to ensure these reports get to the minister.”

Forensic reports assessed per province (since 2009)

» Eastern Cape – 34

» KwaZulu-Natal – 19

» Western Cape – 16

» Mpumalanga – 15

» Limpopo – 11

» Free State – 5

» North West – 4

» Northern Cape – 3

» Gauteng – 2


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