The Emfuleni local municipality in the Vaal says it will take action against officials and service providers implicated in a forensic report into a controversial vehicle procurement.
The municipality said on Wednesday it would institute criminal charges and disciplinary action against implicated officials and blacklist companies and their directors.
Municipal spokesperson Makhosonke Sangweni said it would institute civil recovery of “prejudice suffered” by the municipality.
According to a report by Tshangana & Associates Incorporated, Maboela Forestry and Construction — owned by Mpho Edward Malema — was paid millions of rand to supply the municipality with a fleet of vehicles.
The report found that the municipality paid for trucks, bakkies and graders that were never delivered, were supplied irregularly, or became inoperable shortly after being acquired.
Sangweni said the municipal council had initiated the forensic investigation after irregular expenditure totalling R16m was identified during the 2023/2024 financial year audit process.
“The forensic investigation has uncovered gross mismanagement relating to the assets’ verification, acquisitions, maintenance and insurance,” he said.
“The investigator has specifically identified irregularities and recommended criminal investigations, disciplinary action against implicated employees, civil litigation/recovery and blacklisting of implicated service providers (directors and companies).”
According to the report, the embattled municipality spent R8.7m buying six trucks that were never delivered, despite invoices being signed and stamped confirming receipt of the vehicles.
The acquisition of the vehicles by the municipality’s fleet department in 2022 led to the loss of more than R16m through irregular vehicle purchases and non-delivery.
The report alleges that fleet manager Lerato Mpholo and assistant fleet manager Levy Hlalele certified invoices as proof of delivery even though the vehicles had not been received.
“By signing as receiver and certifier, respectively, both Mr Mpholo and Mr Hlalele misled [the municipality] that the trucks were delivered; as a result, the municipality was prejudiced and suffered a financial loss of R8.7m,” read the report.
READ|Emfuleni municipality given an ultimatum to shape up
Investigators found that Maboela Forestry and Construction had provided documentation intended to create the impression that the trucks had been delivered.
The municipality bought eight Toyota Hilux bakkies from Maboela at a cost of R525,607 each, amounting to R4.2m.
The report said that out of the eight, only three were confirmed delivered and, as of July 2023, five were still outstanding with unclear final delivery dates.
Sowetan
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.