CAPRICORN DISTRICT MUNICIPALITY

Transcription

1 CAPRICORN DISTRICT MUNICIPALITY MUNICIPAL PUBLIC ACCOUNTS COMMITTEE 2015/16 OVERSIGHT REPORT MPAC 2015/16 OVERSIGHT REPORT Page 1

2 FOREWORD BY THE CHAIRPERSON The 2015/16 Draft Annual Report was tabled in Council on the 31 st January The final step in the reporting process is for Council to approve the Annual Report in the light of the findings contained in the Oversight Report. The Municipal Public Accounts Committee is required by Section 129 (1) of the Municipal Finance Management Act No. 56 of 2003 to consider the Draft Annual Report and thereafter table its findings and recommendations to Council within 02 months after it was referred to the committee. The Municipal Public Accounts Committee was established on the 14 th September 2016 had implemented it activities that were aimed at promoting a culture in Capricorn District Municipality of transparent and accountable local governance and the aspiration of a sound financial management practice which will ultimately result in accelerating quality service delivery to the entire community in the District. After a very hectic and tight programme of considering and scrutinising the 2015/16 Draft Annual Report as referred by Council on 31 st January 2017, the Municipal Public Accounts Committee (MPAC) has finally completed its delegated work and is now in a position to table its Oversight Report with findings and recommendations. Credit goes to members of the Committee who dedicated their time by participating in the activities of the Committee which contributed towards ensuring that the task assigned is completed and the report is ultimately tabled to Council. To Madam Speaker, Cllr Nakedi Lekganyane and her counterparts in Local Municipalities, Chairpersons of Section 79 Committees, the Executive Mayor, Mayoral Committee, all Councillors in both the District and Local Municipalities and members of the public who were part of the public participation and public hearings, thank you for your immense contribution in making this oversight a reality. Credit and much appreciation is also given to the Office of the Auditor General, the Limpopo Legislature, Provincial Treasury and the Department of Cooperative Governance, Human Settlements and Traditional Affairs (CoGHSTA) for their supports. It is also with a sense of pride to acknowledge the administrative support rendered by the officials under the leadership of the Acting Municipal Manager, Mme Thuso Nemugomoni for their outstanding work of coordinating MPAC activities, submissions of relevant documentations and also honouring and responding to questions raised by the Committee. Your commitment in the work assigned by the Leadership of the municipality is highly appreciated. RE ŠOMA LE SETŠHABA MPAC 2015/16 OVERSIGHT REPORT Page 2

3 1. STATEMENT OF THE PURPOSE OF THE OVERSIGHT Council has appointed the Municipal Public Accounts in terms of Section 79 of Local Government Municipal Structures Act, No. 117 of Due to 2016 Local Government elections held on the 03 rd August 2016, the Council has appointed new Committee on the 14 th September 2017, which took over from the previous committee which its term of Office came to end immediately after the elections. Section 121 of Municipal Finance Management Act no 56 of 2003 requires each municipality to prepare an Annual Report and submit it to Council for consideration. The 2015/16 Draft Annual Report was tabled to Council on the 31 st January 2017 and referred to the Municipal Public Accounts Committee for scrutinising and report back to Council on the findings by the end of March 2017 in terms of the MFMA. Section 129(1) of the MFMA states that the Council of the Municipality must consider the Annual report of the Municipality and by no later than two months from the date on which the Draft Annual Report was tabled in the Council in terms of Section 127, adopt an Oversight Report containing the Council s comments on the Annual Report, which must include a statement of whether Council has: approved the Annual Report with or without reservations; rejected the Annual Report or referred the Annual Report back for revision of those components that can be revised. 2. MUNICIPAL PUBLIC ACCOUNTS COMMITTEE During the 2015/16 financial the Municipal Public Accounts Committee was consists of the following Councillors. Cllr M.E. Tsoai - Chairperson Cllr M.H. Morwana Cllr Q. Mehlape Cllr M.J. Sedibane Cllr N.D. Setjie Cllr A.M. Lediga Cllr S. Mkohliswa Cllr M.J Moropa Cllr R.F Mmako MPAC 2015/16 OVERSIGHT REPORT Page 3

4 During the Council meeting held on the 14 th September 2016, Council appointed the new committee which is consists of the following members:- Cllr M.P. Makgato - Chairperson Cllr M.M. Tsiri Cllr S.J. Dikgale Cllr N.J. Legodi Cllr M.G. Mabote Cllr T.P. Mathabatha Cllr M.C. Sesera Cllr N.D. Setjie 3. CIRCULATION OF THE ANNUAL REPORT Since the referral of the 2015/16 Draft Annual Report by Council, Capricorn District Municipality has issued an adverts in News Papers and also posted the document on the Municipal Website, to inform the public of the availability of the document. The documents were also circulated to Local Municipalities and Traditional Authority Offices (Meshate). 4. ANNUAL REPORTING PROCESS 2015/6 Capricorn District Municipality has complied with the legislative requirements relating to the process followed in compiling the 2015/16 Draft Annual Report and the resultant Oversight Report in comparison, as required in terms of Sections 121 to 129 of the Municipal Finance Management Act, No. 56 of METHODOLOGY AND FINDINGS 5.1. MPAC meetings The Office of the Auditor General, Provincial Treasury and Department of Cooperatives Governance, Human Settlement and Traditional Affairs and Audit Committee Chairperson were invited to clarify the committee on some issues and the Municipal Public Accounts Committee managed to meet in February (13 th & 16 th 17 th ) and March (06 th & 22 nd ) to verify the validity and completeness of the information outlined in the 2015/16 Draft Annual Report against legislative requirements. The minutes and the attendance registers of the meetings are attached as Annexure A MPAC Projects Visits Furthermore a verification process was conducted on a sample of projects appearing in the 2015/165 Draft Annual Report to confirm their completeness and also to check their impact to the community. The project visits reports is attached as Annexure B. MPAC 2015/16 OVERSIGHT REPORT Page 4

5 5.3. Public Participation The Municipality invited public comments on the Draft Annual Report and a Public Participation Event was advertised in the Review and Observer newspapers and also through posters which were placed in local municipalities offices and Traditional Authority Offices (Meshate) around Capricorn District Municipality. As part of promoting transparency, good governance, public participation and accountability, the committee solicited inputs and comments from stakeholders and community members from Local Municipalities in the District during Public Participation, which was held on the 08 th March 2017 at Bolivia Lodge, Polokwane. Public Participation Report is attached as Annexure C Public Hearing The Public Hearing on the 2015/16 Draft Annual Report was held on the 10 th March 2017, where the Accounting Officer was responding and clarifying the committee on issues raised and questions submitted to her office pertaining to the 2015/16 Draft Annual Report. The Office of the Auditor General, CoGHSTA, Provincial Treasury, SALGA and Limpopo Legislature were invited to attend the Public Hearing. The Public Hearing was advertised in the Observer and Review Newspapers where the public was invited to observe the proceedings. Attached are:- i. Minutes and attendance Registers for meetings Annexure A ii. Projects visits Report - Annexures B iii. Public Participation Report Annexure C iv. Questions from MPAC to Management Annexure D, v. Responses from Management - Annexure E; and vi. Public Hearing Report - Annexure F. vii. Press cuttings ( Adverts) Annexure H 5.5. General findings i. Inconsistence in reporting format by departments. ii. Poor monitoring of some projects by the consultants. iii. Poor quality work done by Contractors. iv. Non-appointment or provision of resident engineers by appointed Engineers. v. Lack of supervision of the projects by our Infrastructure departments. vi. An intention to deviate from the original scope of work at Mogwadi WWTW. MPAC 2015/16 OVERSIGHT REPORT Page 5

6 vii. The Draft Annual Report has erroneous information, which were highlighted in the Questions document. viii. No investigations were conducted on the unauthorised, irregular, fruitless and wasteful expenditures. 6. SUMMARY OF SUBMISSIONS RECEIVED FROM THE COMMUNITY AND OTHERS The following table reflects the inputs received from the respective bodies/individuals relating to the contents of the Annual Report Representation submitted by: Individual Councillors Private Individuals Civic organisations Key issues raised Determination by Oversight Committee None None None Public, communities and other stakeholders Public Participation was held on the 08 th March 2017, at Bolivia Lodge. Report attached as Annexure C ESKOM Lepelle Northern Water Auditor General ESKOM was represented during the Public Participation held on the 08 th March 2017, at Bolivia Lodge Lepelle Northern Water was represented during the Public Participation held on the 08 th March 2017, at Bolivia Lodge Meeting between the Office of the Auditor General SA and Municipal Public Accounts Committee - (minutes of the meeting as a proof) Report attached as Annexure C Report attached as Annexure C Presented during MPAC meeting on the 13 th February ANNUAL FINANCIAL STATEMENTS The Committee noted that the municipality maintained an Unqualified Audit Opinion with lesser matters of emphasis. MPAC 2015/16 OVERSIGHT REPORT Page 6

7 8. CONCLUSION The Committee has noted the clarifications as given by the management in the action plan to improve institutional financial and non-financial performance. 9. RECOMMENDATIONS 9.1. That the Executive Mayor should engaged the MEC for Roads and Transport on the processes to be followed when transferring roads to RAL That finance departments targets should be stretched to accommodate the queries which Auditor General continues to raise, i.e. SARS issues (100% compliance on statutory payments) That expenditure should be incurred in line with the approved budget That management should develop a Revenue Enhances Action Plan to ensure that the institution is not only depend on the grants That projects monitoring mechanisms should be strengthened That an investigations should be constituted for the Chloe to Kordon road and Mogwadi WWTW projects That the municipality should ensure that Chloe to Kordon road and Mogwadi WWTW projects are completed That Mogwadi WWTW projects should be implemented as per the approved specification or scope of work That Engineers should be held accountable for the projects which were poorly implemented That the Municipal Health Services should prioritise taking their tests to Water Quality Laboratory That Council having fully considered the 2015/16 Annual Report of the Municipality and representations thereon adopt the Oversight Report and approve the 2015/15 Annual Report without reservations. CLLR M.P. MAKGATO MPAC CHAIRPERSON DATE MPAC 2015/16 OVERSIGHT REPORT Page 7