PRESENTATION TO THE STANDING COMMITTEE ON PUBLIC
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PRESENTATION TO THE STANDING COMMITTEE ON PUBLIC ACCOUNTS (SCOPA) EC-COGTA: MUNICIPAL INVESTIGATIONS UPDATE MEC: X E NQATHA, (MPL) 10 NOVEMBER 2020 1 TABLE OF CONTENTS 2 INTRODUCTION BACKGROUND PURPOSE 106 (1)(B) MUNICIPALITIES
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PRESENTATION TO THE STANDING COMMITTEE ON PUBLIC ACCOUNTS (SCOPA) EC-COGTA: MUNICIPAL INVESTIGATIONS UPDATE MEC: X E NQATHA, (MPL) 10 NOVEMBER 2020 1<br>
02
TABLE OF CONTENTS 2 INTRODUCTION
BACKGROUND
PURPOSE
106 (1)(B) MUNICIPALITIES INVESTIGATION UPDATE
NATIONAL PROSECUTION AUTHORITY (NPA) CASE UPDATE
SIU MUNICIPAL INVESTIGATIONS UPDATE
DPCI (HAWKS) MUNICIPAL INVESTIGATIONS UPDATE
CONSEQUENTLY CHALLENGES AND SOLUTIONS
MUNICIPAL OFFICIALS MISCONDUCT PRESCRIPTS-GUIDE
CONCLUSION<br>
BACKGROUND
PURPOSE
106 (1)(B) MUNICIPALITIES INVESTIGATION UPDATE
NATIONAL PROSECUTION AUTHORITY (NPA) CASE UPDATE
SIU MUNICIPAL INVESTIGATIONS UPDATE
DPCI (HAWKS) MUNICIPAL INVESTIGATIONS UPDATE
CONSEQUENTLY CHALLENGES AND SOLUTIONS
MUNICIPAL OFFICIALS MISCONDUCT PRESCRIPTS-GUIDE
CONCLUSION<br>
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INTRODUCTION 3 Eastern Cape has 39 municipalities categorised as 2 Metropolitans, 6 Districts (DMs) and 31 local municipalities(LMs).
This report relates to municipalities identified by SCOPA including BCMM and NMBM, 6 Districts (Alfred Nzo, OR
Tambo, Joe Gqabi, Chris Hani, Amathole, and 31 local municipalities.
The report focuses on consequence management measures implemented pursuant to investigations conducted at these municipalities in accordance with good governance pillar of back to basics and prescripts of Section 106(1) of Municipal Systems Act, 2000 (Act 32 of 2000)
The investigations include those conducted in terms of section 106(1)(b) of the Systems Act under the auspices of the EC-CoGTA through sourcing of funding from National Treasury
Following the finalisation of investigations in terms of section 106(1)(b), reports are tabled the MEC with the action plans to the relevant municipalities who are then required to implement such recommendations, whilst the department monitors the implementation of such action plans.
Notwithstanding the referrals made to law enforcement agencies, SIU and DPCI as well as the progress made towards prosecution of criminal cases against officials<br>
This report relates to municipalities identified by SCOPA including BCMM and NMBM, 6 Districts (Alfred Nzo, OR
Tambo, Joe Gqabi, Chris Hani, Amathole, and 31 local municipalities.
The report focuses on consequence management measures implemented pursuant to investigations conducted at these municipalities in accordance with good governance pillar of back to basics and prescripts of Section 106(1) of Municipal Systems Act, 2000 (Act 32 of 2000)
The investigations include those conducted in terms of section 106(1)(b) of the Systems Act under the auspices of the EC-CoGTA through sourcing of funding from National Treasury
Following the finalisation of investigations in terms of section 106(1)(b), reports are tabled the MEC with the action plans to the relevant municipalities who are then required to implement such recommendations, whilst the department monitors the implementation of such action plans.
Notwithstanding the referrals made to law enforcement agencies, SIU and DPCI as well as the progress made towards prosecution of criminal cases against officials<br>
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INTRODUCTION-CONT. 4 National COGTA is establishing a database for official that are being dismissed because of criminal and or misconduct case in accordance with the guidelines and prescripts of:-
i) Section 57A of the Local Government: Municipal Systems Act, 2000 (Act No. 32 of 2000) (‘‘the Systems Act’’), as amended
in 2011,
ii) Section 171 of the Local Government: Municipal Finance Management Act, 2003 (Act No. 56 of 2003) and
iii) Schedule 2 of the Local Government: Regulations on the Appointment and Conditions of Employment of Senior Managers
(‘‘the Regulations’’) published on 17 January 2014 in Government Notice No.21, under Government Gazette No. 37245
forbids the employment of persons who have been dismissed for misconduct
Though we did not manage to get an update from all the list of 27 municipalities, however we continue to engage with the affected Municipalities and law enforcement agencies with a view to get update in due course.
A clear picture depicting the progress made by the law enforcement agencies within the Province is therefore shared in this presentation for your consideration,<br>
i) Section 57A of the Local Government: Municipal Systems Act, 2000 (Act No. 32 of 2000) (‘‘the Systems Act’’), as amended
in 2011,
ii) Section 171 of the Local Government: Municipal Finance Management Act, 2003 (Act No. 56 of 2003) and
iii) Schedule 2 of the Local Government: Regulations on the Appointment and Conditions of Employment of Senior Managers
(‘‘the Regulations’’) published on 17 January 2014 in Government Notice No.21, under Government Gazette No. 37245
forbids the employment of persons who have been dismissed for misconduct
Though we did not manage to get an update from all the list of 27 municipalities, however we continue to engage with the affected Municipalities and law enforcement agencies with a view to get update in due course.
A clear picture depicting the progress made by the law enforcement agencies within the Province is therefore shared in this presentation for your consideration,<br>
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BACKGROUND 5 GOOD GOVERNANCE
In municipalities depends on the effective management and administrative competence as well as the collective will of Municipal Councils to work for progressive change.
The challenge facing some of our Municipal Councils is failure to provide quality and sustainable services within the broader context of growth and development. In this regard, the Department is calling on all Councillors as public representatives, to demonstrate unwavering commitment to fight corruption and promote safe and healthy environments, in accordance with the RSA Constitution, 1996 and relevant Legislation.
The only coalition council in the Eastern Cape is in the Nelson Mandela Bay Municipality. The coalition government in Nelson Mandela poses challenges in as far as taking council resolutions. Due to diversity of political affiliations, the council deadlock in taking resolutions and this has a negative impact on the delivery of basic services.
A typical example of this is the adoption of the budget which was adopted long after the legislated timeframe. The city has also undergone and still is going through considerable political instability, which has affected the administration.
All councils in the Eastern Cape had at least four (4) ordinary Council meetings during the 2019/2020 and 2018/19 financial year as legislated.
The period from 2016/17 to 2019/20 financial years indicates that Mayoral Committees/EXCO have been in place, the trend in the Eastern Cape has been that the all Mayoral Committees/EXCO have sat at least 4 times in each of the afore mentioned years.<br>
In municipalities depends on the effective management and administrative competence as well as the collective will of Municipal Councils to work for progressive change.
The challenge facing some of our Municipal Councils is failure to provide quality and sustainable services within the broader context of growth and development. In this regard, the Department is calling on all Councillors as public representatives, to demonstrate unwavering commitment to fight corruption and promote safe and healthy environments, in accordance with the RSA Constitution, 1996 and relevant Legislation.
The only coalition council in the Eastern Cape is in the Nelson Mandela Bay Municipality. The coalition government in Nelson Mandela poses challenges in as far as taking council resolutions. Due to diversity of political affiliations, the council deadlock in taking resolutions and this has a negative impact on the delivery of basic services.
A typical example of this is the adoption of the budget which was adopted long after the legislated timeframe. The city has also undergone and still is going through considerable political instability, which has affected the administration.
All councils in the Eastern Cape had at least four (4) ordinary Council meetings during the 2019/2020 and 2018/19 financial year as legislated.
The period from 2016/17 to 2019/20 financial years indicates that Mayoral Committees/EXCO have been in place, the trend in the Eastern Cape has been that the all Mayoral Committees/EXCO have sat at least 4 times in each of the afore mentioned years.<br>
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BACKGROUND CONT. 6 As at the end of the 2018/19 financial year all the municipalities within the Eastern Cape had established functional Audit Committees and Internal Audit units. However, Internal Audit governance is still a challenge in the province and the maturity levels of municipalities in terms of Internal Audit is still lagging behind.
Only two (2) municipalities in the province failed to submit their Annual Financial Statements to the Auditor General on time during the 2017/18 financial year namely; Sakhisizwe and Sundays River Valley Local Municipalities. There are 14 delegated municipalities out of 36 that have not established Disciplinary Boards.
The Amathole District and Local Municipalities are the most challenged with no municipality having established to date. Common reasons for the non-establishment of Disciplinary Boards are that items for the establishment of Disciplinary Boards are yet to be taken to council and in instances where the item has been presented to Council, the council resolution confirming the establishment of boards have not been submitted by municipalities to Provincial Treasury.
Provincial Treasury assists municipalities with the establishment of Disciplinary Boards by unpacking the Financial Misconduct Regulations through Provincial workshops and individual engagements with municipalities.
Provincial Treasury also assists municipalities by facilitating training for the Financial Misconduct Disciplinary Boards on their role and responsibilities. A total number of twelve (12) financial misconduct cases were reported to have been investigated during the reporting period.<br>
Only two (2) municipalities in the province failed to submit their Annual Financial Statements to the Auditor General on time during the 2017/18 financial year namely; Sakhisizwe and Sundays River Valley Local Municipalities. There are 14 delegated municipalities out of 36 that have not established Disciplinary Boards.
The Amathole District and Local Municipalities are the most challenged with no municipality having established to date. Common reasons for the non-establishment of Disciplinary Boards are that items for the establishment of Disciplinary Boards are yet to be taken to council and in instances where the item has been presented to Council, the council resolution confirming the establishment of boards have not been submitted by municipalities to Provincial Treasury.
Provincial Treasury assists municipalities with the establishment of Disciplinary Boards by unpacking the Financial Misconduct Regulations through Provincial workshops and individual engagements with municipalities.
Provincial Treasury also assists municipalities by facilitating training for the Financial Misconduct Disciplinary Boards on their role and responsibilities. A total number of twelve (12) financial misconduct cases were reported to have been investigated during the reporting period.<br>
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PURPOSE 7 The purpose of this report, was outlined by the Chairperson of SCOPA as to establish whether consequence management measures have been implemented at the affected municipalities in relation to the investigations conducted.<br>
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106 (1)(B) MUNICIPALITIES INVESTIGATION UPDATE 8<br>
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EC-COGTA MUNICIPALITY INVESTIGATIONS 9<br>
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EC-COGTA MUNICIPALITY INVESTIGATIONS-CONT. 10<br>
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EC-COGTA MUNICIPALITY INVESTIGATIONS-CONT. 11<br>
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EC-COGTA MUNICIPALITY INVESTIGATIONS-CONT. 12<br>
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EC-COGTA MUNICIPALITY INVESTIGATIONS-CONT. 13<br>
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EC-COGTA MUNICIPALITY INVESTIGATIONS-CONT. 14<br>
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NPA MUNICIPAL CASE PROSECUTION UPDATE 15<br>
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NPA MUNICIPAL CASE PROSECUTION UPDATE 16<br>
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NPA MUNICIPAL CASE PROSECUTION UPDATE 17<br>
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NPA MUNICIPAL CASE PROSECUTION UPDATE 18<br>
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NPA MUNICIPAL CASE PROSECUTION UPDATE 19<br>
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NPA MUNICIPAL CASE PROSECUTION UPDATE 20<br>
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NPA MUNICIPAL CASE PROSECUTION UPDATE 21<br>
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NPA MUNICIPAL CASE PROSECUTION UPDATE 22<br>
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NPA MUNICIPAL CASE PROSECUTION UPDATE 23<br>
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NPA MUNICIPAL CASE PROSECUTION UPDATE 24<br>
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SIU MUNICIPAL INVESTIGATIONS UPDATE 25<br>
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SIU MUNICIPAL INVESTIGATIONS UPDATE 26<br>
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SIU MUNICIPAL INVESTIGATIONS UPDATE 27<br>
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SIU MUNICIPAL INVESTIGATIONS UPDATE 28<br>
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DPCI (HAWKS)- MUNICIPAL INVESTIGATIONS UPDATE 29<br>
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DPCI (HAWKS) MUNICIPAL INVESTIGATIONS UPDATE 30 Update received on the 30th September 2020:-
Around 21 Municipal cases of corruption and related offences were under investigation,
These investigation relates to various municipalities of the EC- province,
Hawks is currently updating their database and will communicate statistics in due course,
Highlights being OR Tambo District Municipality door to door Covid -19 campaign, concluded
A number of investigations are ongoing at Nelson Mandela Bay Metro
Amathole District Municipality investigations is in progress,<br>
Around 21 Municipal cases of corruption and related offences were under investigation,
These investigation relates to various municipalities of the EC- province,
Hawks is currently updating their database and will communicate statistics in due course,
Highlights being OR Tambo District Municipality door to door Covid -19 campaign, concluded
A number of investigations are ongoing at Nelson Mandela Bay Metro
Amathole District Municipality investigations is in progress,<br>
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CONSEQUENTLY CHALLENGES WITH POSSIBLE SOLUTIONS 31<br>
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CONSEQUENTLY 32 MEC recently wrote letters to the affected municipalities requesting progress on the implementation of an Action Plan but Great Kei and Emalahleni responded.
Legal consideration is underway of dealing with all those that are not cooperating.
Lock down slowed down the process of tabling of reports to municipalities.
The process of resuscitating the tabling of the outstanding reports is underway.
COGTA is committed to support Municipalities in implementing the forensic reports outcomes and only Great Kei and Emalahleni requested such support.
All tabled investigations are handed over to the Law enforcement agencies for pursuing of the criminal matters and possible recoveries.<br>
Legal consideration is underway of dealing with all those that are not cooperating.
Lock down slowed down the process of tabling of reports to municipalities.
The process of resuscitating the tabling of the outstanding reports is underway.
COGTA is committed to support Municipalities in implementing the forensic reports outcomes and only Great Kei and Emalahleni requested such support.
All tabled investigations are handed over to the Law enforcement agencies for pursuing of the criminal matters and possible recoveries.<br>
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MUNICIPAL OFFICIALS MISCONDUCT PRESCRIPTS- GUIDE 33<br>
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MUNICIPAL OFFICIALS MISCONDUCT PRESCRIPTS- GUIDE 34<br>
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MUNICIPAL OFFICIALS MISCONDUCT PRESCRIPTS- GUIDE 35<br>
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MUNICIPAL OFFICIALS MISCONDUCT PRESCRIPTS- GUIDE 36<br>
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CONCLUSIONS 37 Most municipalities recommendations through COGTA formulate the action plans for the attention of the Municipal Council and all relevant parties.
Due to the number of municipalities supported through either 154 and or 139 through administration, the need for COGTA to do investigation arises and the budget issues seem to be a challenge,
Most municipality has given the investigation to COGTA though they have a capacity and the community seem not to be comfortable with municipalities invoking its investigation and prefer COGTA to invoke investigations
Due to high volume of municipal cases this has tended to affect the turn around time between all law enforcement agencies and stakeholders creating backlog.
where these investigations have been concluded there is a slow implementation of the finding and
Local Government Anti-corruption strategy has contributed positively towards the hotline cases and there has been a decline of reporting which tend to focus on four pillars, I.e Prevention (awareness campaigns), Detection (auditing and fraud prevention plan), Investigation and Resolution (prosecution).
A Local Government Anti-corruption Forum has been formed with its SteerCo to facilitate dialogue between law enforcement agencies, National and Provincial Departments and all the role players within the sphere of local government to assist with better coordination of enforcement and preventative measures.
EC-CoGTA has developed joint team approach in dealing with Municipal petitions, these teams has assisted in ensuring all the fact are either validated and where otherwise refuted through this multi-disciplinary approach comprised of representatives from infrastructure, legal, municipal capacity , municipal admin, municipal development finance (unauthorized, fruitless, wasteful and irregular expenditure) and anti-corruption units.<br>
Due to the number of municipalities supported through either 154 and or 139 through administration, the need for COGTA to do investigation arises and the budget issues seem to be a challenge,
Most municipality has given the investigation to COGTA though they have a capacity and the community seem not to be comfortable with municipalities invoking its investigation and prefer COGTA to invoke investigations
Due to high volume of municipal cases this has tended to affect the turn around time between all law enforcement agencies and stakeholders creating backlog.
where these investigations have been concluded there is a slow implementation of the finding and
Local Government Anti-corruption strategy has contributed positively towards the hotline cases and there has been a decline of reporting which tend to focus on four pillars, I.e Prevention (awareness campaigns), Detection (auditing and fraud prevention plan), Investigation and Resolution (prosecution).
A Local Government Anti-corruption Forum has been formed with its SteerCo to facilitate dialogue between law enforcement agencies, National and Provincial Departments and all the role players within the sphere of local government to assist with better coordination of enforcement and preventative measures.
EC-CoGTA has developed joint team approach in dealing with Municipal petitions, these teams has assisted in ensuring all the fact are either validated and where otherwise refuted through this multi-disciplinary approach comprised of representatives from infrastructure, legal, municipal capacity , municipal admin, municipal development finance (unauthorized, fruitless, wasteful and irregular expenditure) and anti-corruption units.<br>
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REPORT CORRUPTION HOTLINE: 0800 701 701 38<br>
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39<br>