Eastern Cape Local Government MEC, Mlibo Qoboshiyane says an investigation into alleged tender and other irregularities at the Kouga Municipality has confirmed a prima facie case for further investigation.
The MEC presented the preliminary investigative report by forensic auditors Gobodo Incorporated to the full Kouga Council on Monday.
The report is still under wraps but Qoboshiyane said after studying it, his department is committed to ensuring a full investigation of the issues raised by the Gobodo report with a view to bringing to book those responsible for irregularities identified in the report.
Among the complaints from the ratepayers association that were investigated by Gobodo Inc were claims of tender and financial irregularities dating back to at least 2006.
Other allegations included the "failure of the Municipality to discipline the (former) CFO for his purported involvement in the awarding of a contract for the installation of prepaid metres to a family member, and his alleged failure to declare his interest when chairing the bid evaluation committee; (the) sale of vacant council land to the CFO for an amount of R17 500 when the land was valued at R175 000; failure by the municipality to discipline an employee for alleged theft of more than R850 000 and payment of performance bonuses without a performance measure or criteria in place."
Qoboshiyane says now that the report has been presented to the Kouga Municipality, the Council has 30 days to provide a written response to the issues and recommendations raised in the Kobodo report.
The MEC said one of the "most important things that the Municipality must do is to improve its internal systems to make sure that irregular conduct, corrupt activities and not given room to manifest."
Kouga executive mayor Booi Koerat, said he was "shocked" by the allegations in the report while Kouga Speaker, Magdalene Dlomo, said they've "noted" the report and will respond to MEC Qoboshiyane in the required time-frame.
