More woes for controversial MEC Mmemezi

THE Gauteng department of local government and housing - headed by controversial MEC Humphrey Mmemezi - racked up R9,448-million in irregular expenditure

This is according to a report compiled by the standing committee on public accounts (Scopa) in the provincial legislature.

The department paid Makgala Ngatane Construction R294967 to construct houses but the contract was awarded without the company possessing a certificate from the National Home Builders Registration Council (NHBRC) as well as a tax clearance certificate.

Companies cannot do work for government departments without a tax clearance certificate and building companies must be registered with the NHBRC before they can build houses.

Mmemezi's spokesman Motsamai Motlhaolwa told Sowetan the company had been registered with the NHBRC.

"The problem was during the audit. We could not produce certificates as [the company] had just been declared insolvent, therefore [we] could not contact them."

Scopa's report further revealed that an unknown number of people unlawfully benefited from housing subsidies amounting to R7,407-million, without being on the housing subsidy system (HSS).

However, Motlhaolwa said: "The beneficiaries were old people, most of them in their 70s. Houses were allocated to them considering the urgency and the administration was done later. They are on the HSS."

The department was also taken to task for appointing consultants - SM Xulu Inc - to prepare its annual financial statements. The company earned R1,745-million for the job.

The DA's Glenda Steyn questioned the department's ability to manage public funds. "I am concerned [it] does not have the capacity to prepare its own annual financial statements. This makes me question [its] ability to manage its finances throughout the year."

Scopa demanded that the department produce copies of Makgala Ngatane's certificates within 30 days and that Mmemezi conduct a forensic investigation into the HSS.