MFMA 2019-20

106 Consolidated general report on the local government audit outcomes • MFMA 2019-20 Auditee and year reported Description Recommendation/referral as reported in audit report Ngaka Modiri Molema (NW) 2018-19 Loss of assets due to lack of internal control system to safeguard assets. Financial loss: To be quantified by municipal manager Notified: 9 December 2019 The municipal manager failed to implement the planned actions. Recommendations to be implemented by 1 October 2021: • The asset verification and investigation process should be completed and the financial loss quantified. • Any person liable for the loss should be identified and appropriate action should commence to recover the financial loss. • Reasonable steps should be taken to safeguard these municipal assets from any further losses, as required by section 63(1) of the Municipal Finance Management Act. • 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. Matjhabeng (FS) 2019-20 Payments made for construction of attenuation (flood-protection) dam on Nyakallong storm-water system not constructed resulting in overpayments on project. Financial loss: To be determined through public body investigations Notified: 5 May 2020 Municipal manager could not provide sufficient and appropriate evidence of actions taken in response to being notified of the material irregularity. Actions taken were also considered to be inadequate. As a result, the material irregularity is being referred to a public body for investigation.