It is unacceptable that the Nelson Mandela Bay Metro is attempting to write off approximately R23 billion in unauthorised, irregular, fruitless and wasteful expenditure (UIFWE) without a proper investigation.
The amount was racked up between 2009 and 2021.
The Municipal Public Accounts Committee (MPAC) recently voted in favour of recommending the write-off, despite serious concerns about the required investigations not being finalised. A legal opinion submitted to the Committee indicated that many of the claims have already prescribed and would be difficult to recover. This does not, however, relieve the Committee of its duty to thoroughly investigate every matter.
The Freedom Front Plus (VF Plus) is not opposed to lawfully writing off amounts that have been found genuinely irrecoverable by means of a thorough investigation. What is unacceptable, though, is to simply write off such an enormous amount without proper investigation, motivation and consideration by the MPAC.
Particularly because the MPAC is specifically tasked with exercising oversight over the Municipality’s financial accountability and ensuring that public funds are properly managed. Every UIFWE item should be assessed on its own merits: what occurred, who was responsible, whether value for money was obtained, and whether the funds remain recoverable.
Nelson Mandela Bay has the highest UIFWE figure in the country. The National Treasury (NT) has already withheld the Metro’s equitable share allocation precisely because of the lack of progress in addressing these expenditures and the absence of accountability.
If this item is tabled to the entire Council before the MPAC has finalised its investigation, the Freedom Front Plus will object. A resolution to write off billions in public funds cannot be passed in good faith if the responsible Committee has not done its duty properly.
A write-off should also never allow the relevant officials and political office-bearers to evade accountability. Allegations of possible corruption, fraud, negligence or other transgressions have to be investigated and those responsible must be held accountable.
Nelson Mandela Bay cannot afford to have R23 billion disappear from its books. Every rand belongs to NMBM residents and should be accounted for.
The Freedom Front Plus will keep demanding transparency, accountability and the safeguarding of taxpayers’ money.
