Lukanji mayor "suspended" amid damning audit report

01 Feb 2016 | Admin Author

The Democratic Alliance in the Eastern Cape says the mayor of the Lukhanji Municipality in Queenstown, Mncedisi Nontsele, has been suspended.

DA MPL, Dacre Haddon, says Nontsele's suspension today came in the wake of a motion during a special council meeting to discuss a damning report by the Auditor-General.

He says the auditor general's report noted that there were numerous misstatements identified in the financial records of the municipality which were indicative of significant fraud.

Haddon says its clear that rampant corruption and fiduciary negligence has caused the chaos in the Lukanji Municipality.

"Amongst some of the issues highlighted by the AG are electricity losses of 42%.
The municipality has lied about having cash reserves of R73, 3 million when the bank statements reveal an amount of R33, 9 million," Haddon said.

He questioned where the missing R39.4 million rand.

"Furthermore, amounts of R4,8 million and R8,1 million grant funding is missing.
Other concerns raised in the report are understatement of irregular expenditure, lack of effective supply chain and contract management systems and inadequate integrated development planning," Haddon added.

He says the DA-motion also seeks an immediate forensic audit into the fiduciary affairs of this municipality.

Haddon says debate on the motion has been deferred to the next council meeting.