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This is according to auditor-general Terence Nombembe's 2010/11 consolidated report on the performance of local government. It reveals that the municipal workers either owned the companies that received the tenders or they were friends or family of those companies.

The money was part of R11-billion mentioned in the report as having been spent in unauthorised, irregular, fruitless and wasteful expenditure.

The tenders were irregularly awarded to senior municipal managers, councillors and other officials though this is prohibited by supply chain management regulations.

Nombembe highlighted the same problem last year where officials, who were mandated to deliver services to people, found themselves on the wrong side of the law.

But with history repeating itself, and on an increased level, it shows that municipal bosses have not put their foot down. The report also indicates that limited action has been taken in response to similar findings last year.

"Opportunity was missed to show these irregular actions [by officials] or suppliers are not tolerated and have consequences," the report says.

These prohibited awards have more than doubled in just a year, from 22% to 46%, as officials take advantage of their councils' weak procurement controls which fail to detect whether declarations of interest were submitted.

The report suggests this irregular expenditure could have been prevented and detected by implementing basic controls, including declarations of interest by the parties.

Although awards to close families was not prohibited, it was unlawful for officials to conceal relations.

Gauteng topped all provinces in the awarding of tenders to companies linked to senior municipal officials, followed by KwaZulu-Natal and North West.

"Although there was little evidence that persons were involved in making the award, the possibility of undue influence cannot be discounted, especially if the persons were in positions of influence, which could create opportunities," the report reads.

Failure by suppliers or officials to declare their interest constitutes a corrupt and fraudulent act and could be subject to investigation, as recommended by Nombembe.

Nombembe said problems in procurement, IT controls, human resources and errors in financial statements had reached intolerable levels and had contributed to the stagnating performance of municipalities.

- nhlabathih@sowetan.co.za

Comments

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Sun May 19 03:17:31 SAST 2013 ::

Jul 25, 2012

Pointman

The figure could just be the confirmed amount. The actual amount might be astronomical. No wonder the ANC wants letgislation to gag the media.

The day is soon coming when they will dispense with tender rigging altogether and loot the treasury directly - because they can. Wake up citizens.
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Jul 25, 2012

Traveljunie

viva ANC!

keep voting ANC, they are obviously to stupid to stop tender corruption, so we can all go on moering each other with Möet just like Juju.
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Jul 25, 2012

MommaC

"...part of R11-billion mentioned in the report as having been spent in unauthorised, irregular, fruitless and wasteful expenditure"

JASSIS !!!!
Hulle kan mos geld vreet ne?
What is the bet that completely NOTHING happens about this?
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Jul 25, 2012

guiliano

Is this what we are voting for? this is a shame.
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Jul 25, 2012

SOLUTIONS

As I said yesterday, people voting for the anc must please go for a brain scan. If you go for a brain scan and there is nothing, please shoot yourself or ask for guidance because you obviously cant make decisions yourself.

OUT WITH THE anc
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Jul 25, 2012

Traveljunie

Yes Momma that money could have been used for our tolls, schools. . . . .aaagh fak it whatever, these people do not give a sh!t.

That is nearly R2200 each for every one of the 5milj odd tax payers in the counrty.
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Jul 25, 2012

MommaC

Oh, by the way, the City of Cape Town also failed to get a clean audit report.

So much for the idea that any political party is worthy of a vote.
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Jul 25, 2012

phalaphala

ANC OFFICIALS WHO CARES THE MONEY IS IN GOOD HANDS
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Jul 25, 2012

Kgaoza606

Limpop Premier Castle Mathale got his 20% share of the R80 million, Juju, maybe 15%...
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Jul 25, 2012

Arewanga

That's y i will never vote ANC if the president is still Zuma, stupid president. He must just open his own taxi rank and leve this government alone.
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