MFMA 2019-20

SECTION 5: MATERIAL IRREGULARITIES 105 Auditee and year reported Description Recommendation/referral as reported in audit report Ngaka Modiri Molema (NW) 2018-19 Overpayment in 2018-19 to supplier for water-tankering services to communities as a result of municipality not having an effective system of expenditure control. Financial loss: To be quantified by municipal manager Notified: 28 November 2019 The municipal manager failed to implement the planned actions. Recommendations to be implemented by 18 November 2021: • The financial loss in the form of overpayments should be quantified and appropriate action should commence to recover the loss from the supplier. • A system of expenditure control should be implemented, as required by section 65(2)(a) of the Municipal Finance Management Act, for the provision of water-tankering services, to prevent over-invoicing of kilometres and hours. • The non-compliance should be investigated to determine if any official might have committed an act of financial misconduct or an offence in terms of chapter 15 of the Municipal Finance Management Act. • Disciplinary or, when appropriate, criminal proceedings should commence against any official who has allegedly committed an act of financial misconduct or an offence, as required by section 62(1)(e) of the Municipal Finance Management Act and in the manner prescribed by the Municipal Regulations on Financial Misconduct Procedures and Criminal Proceedings. • If it appears that the municipality suffered the financial loss through fraud, this should be reported to the South African Police Service, as required by section 32(6)(b) of the Municipal Finance Management Act.