SECTION 106 INVESTIGATION ON SOL PLAATJIE MUNICIPALITY

Media Statement:

The Systems Act, 32 of 2000 makes provision for Provincial Monitoring of Municipalities. Section 105 (a) empowers the M.E.C for Local Government in the Province to monitor municipalities in managing their own affairs, exercising their powers and performing their functions.

MEC Bentley Vass who is responsible for Cooperative Governance, Human Settlements and Traditional Affairs has instituted a Section 106 investigation into Sol Plaatjie Municipality. The investigation is premised on the recent developments that has unfolded in the municipality. The terms of reference for the section 106 (1) b investigation are as follows:

a. Investigate the appointment of Consultants/Service providers with specific reference to the appointment of the service provider who are sending SMS to households and whether procedure was followed in terms of Supply Chain Management Processes.
b. Investigate whether other consultants/service providers has been appointed without following the proper procedures as per the MFMA.
c. Investigate any possible conflict of interest of any official, councillor or any of their family members and associates past and present in terms of the aforementioned companies, their directors, shareholders, employees or associates.

d. Investigate compliance with regards to the Supply Chain Management Policy and Regulations in terms of procurement since 2016 as it relates to purchases for the Executive Mayors Private Residence.
e. Investigate whether irregular, fruitless and wasteful expenditure were incurred on the repairs and maintenance of the mayoral vehicles given the subsequent purchase of a new mayoral vehicle and reported to the relevant authorities as espoused in section 32 of the Municipal Finance Management Act.
f. Investigate the car rentals for the Mayor since August 2016 and whether these rentals are linked to official engagements of the municipality.
g. Investigate whether the land disposal processes in the municipality adhered to the land disposal policy of council and the relevant legislation.
h. Investigate compliance to internal processes and systems with regards to Risk Management, Performance Management, General Management and Service Delivery.
i. Investigate the Income and Expenditure patterns at the Municipality and whether the municipality meets its obligations in terms of statutory payments and creditors. Investigate the allegation of mismanagement of Municipal Funds.
j. Investigate the electricity tariffs approved by SPM and whether it complies with the approved tariff structure of NERSA.
k. Investigate the matters leading to the Council meeting of the 30 May 2018 and the subsequent appointment of an acting Speaker.
l. Investigate the matters raised by the Lerato Park residents as it relates to housing complaints.
m. The team is mandated to interview any other person(s) that may shed light on the allegations.
n. The team is further mandated to investigate any other matter not part of the terms of reference but may be found during this section 106 (1) (b) investigation.

The MEC has further appointed an interdepartmental task team consisting of the following officials:

Mr T. Mabija (Provincial Treasury) – Chairperson of the Panel
Mr P Seane (Coghsta)
Ms B. Mgaguli (Provincial Treasury)
Mr R. Rahlano (Provincial Treasury)
Ms L. Lecwidi (Coghsta)
Mr J. Blom (SALGA-NC)
Ms M. Mabotsa (Coghsta)
Adv. K. Victor (OTP)

The Task Team complete will within twenty-one days develop a report with findings and recommendations.