ANC NWC STATEMENT ON LEKWA MUNICIPALITY

Yesterday's (21 October 2009) implementation of the African National Congress (ANC) National Working Committee (NWC) decision in the Lekwa Local Municipality that led to the recall of the mayor, the speaker, chief whip and members of the municipal mayoral committee should serve as a reminder to all our deployed cadres of the importance of carrying out an ANC mandate - in line with the 2009 Election Manifesto (see statement).

The implementation of the NWC decision to place Lekwa under administration for a year in terms of Section 139 (1) (b) of the Constitution, should be seen as an effective and decisive act to demonstrate zero tolerance on non-delivery, mismanagement, weak administration, fraud and corruption.

The ANC can today (22 October 2009) reveal the magnitude of the Lekwa Municipality's mal-administration, which necessitated the bold step we have taken.

In terms of the report submitted by ANC NEC deployees Fikile Mbalula and Malusi Gigaba who were mandated by the NWC to go and investigate violence in Sakhile township, at the centre of the council challenges is the August 2008 internal audit report that was mandated by former Mpumalanga MEC for Local Government and Housing, Candith Mashego-Dlamini, following allegations of fraud, corruption, mal-administration and other irregularities at the Lekwa Local Municipality. The report identified specific problem areas and recommended remedial actions to be taken. But these were ignored.

The report by the former Mpumalanga MEC painted a picture of an institution with no leadership, collapsed systems and lack of internal controls. The Section 106 report was not the first to be issued to the Lekwa Local Municipality, without implementation of recommendations. Before MEC Mashego-Dlamini's report, there was a similar report issued by internal auditors mandated by another former Mpumalanga Local Government and Housing MEC LJ Mahlangu under Section 106 (1)(b) of the Local Government: Municipal Systems Act 3 of 2000.

Among some irregularities listed in the NWC report were that:

• The Lekwa Local Council consistently appointed Section 57 managers without qualifications and competencies. An architect was appointed manager: technical; a nurse appointed LED manager and a chief financial officer (CFO) was appointed on the basis of an affidavit alleging non existing qualifications.
• Councillors were given performance bonuses to the tune of R80 000 without performance evaluations being carried out.
• The previous municipal manager was not expelled but rather given a golden handshake after allegedly committing criminal acts.
• The mayor arbitrarily manipulated the organogram.
• The council could not produce financial statements because there was no qualified CFO.
• The council could not account for the use of public funds. A R30 million investment inherited from the previous council could not be accounted for. This brought divisions among councillors, some of who are in the dark about how the money was spent.
• A chicken broiler capitalised about eight years ago, built on land donated by the Department of land Affairs is a project which to date remains incomplete. Some company was reportedly paid in full before commencing with the work and no recovery efforts were made to collect the money. In fact, the company was later given additional work, which included paving of roads.
• Sahara Sands was allegedly granted a R17 million project in contravention of policy because no 30 percent of the work went to local contractors.
• Liquor and catering jobs given to the same suppliers to the exclusion of locally based companies.

All these issues will now be investigated by the administrator who will apply due process of the law, even if it means perpetrators go to jail.

Against the background which points to blatant disregard for Government and proper financial management, the NWC was left with no choice other than a decisive and swift action.

Statement issued by Jackson Mthembu, national spokesperson of the African National Congress, October 22 2009

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