The R492m agreement was signed in 2013 but after changing its mind mid-project did not pay the supplier.
No meters were installed.
Irregular expenditure topped R1.1bn in the 2018/19 year as a result of the municipality failing to comply with supply-chain management regulations or the Municipal Finance Management Act which set out the required process to solicit competitive bids and quotes.
The committee said it was “unacceptable that the municipality has no plans to remedy the 81 matters of emphasis highlighted by the auditor-general for the 2018/19 financial year”. The municipality’s R586m deficit for the year was further proof that the financial recovery plan had failed.
Unreliable power and water supplies would also hamper its ability to collect rates and taxes, worsening the municipality’s financial situation.
The committee said widespread sewage spillage and water leaks would also deter any investors, undermining any hopes of creating jobs.
“Laws and regulations are there for a reason and can’t be adhered to only when people feel like it,” said Muthambi.
“This way of doing things exposes the municipality to high levels of risk that cannot be tolerated,” she said.
In a further damning judgment, the committee noted that municipality refuses positive private sector proposals, a government strategy for resolving SA’s socioeconomic ills.
The municipality is due to respond to the committee’s questions on October 23.
“This resolution is based on the desire to find workable solutions to the municipality’s problems and ensure effective service delivery for the people of Emfuleni,” the committee said.