The Executive Committee (EXCO) has ordered a full scale probe into the management of the City’s fleet of vehicles, plant and equipment after initial investigations revealed potential acts of maladministration as well as fruitless and wasteful expenditure.
In addition to the initial investigations conducted by Internal Audit at the Municipality’s six depots (out of a total of 28 depots), EXCO mandated City Manager Sibusiso Sithole to engage external auditors and investigators to do further probes at all 28 depots.
EXCO held its meeting at Moses Mabhida Stadium on Tuesday 21 October 2014.
Briefing the committee Sithole said the investigation into fleet management in the City was prompted by concerns raised by the Audit Committee in its 2nd Quarter Report to EXCO and subsequently EXCO order the City Manager to take the necessary action to deal with the matter. Mayor Nxumalo and members of EXCO then conducted unannounced visits to two depots which confirmed the concerns.
“We have already reported the issue of fleet management and other related matters to the police in terms of the Prevention and Combating of Corrupt Activities Act for an enquiry (case number: 16/10/2014),” said Sithole. “Furthermore a hearing to consider the possibility of suspending certain officials within the City Fleet Department took place yesterday (Monday) and the final decision in this regard will be communicated to affected employees by end of business today.”
The Vehicle Fleet report relating to the six depots, which was finalised on 16 October 2014, will provide the basis for City Integrity and Investigations Unit to conduct a detailed investigation, whilst concurrently Internal Audit finalise probing the balance of depots.
Among common issues identified by the report include:
- Concerns on vehicle usage analysis;
- Investigations and analysis of expenditure patterns on acquisition of vehicles in tandem with vehicle analysis;
- Vehicles staying at staging yards for longer than expected duration and not fully utilised,
- Vehicle auctions and analysis of vehicle suitability to be placed on auctions, and various allegations of disposal irregularities;
- Identification of vehicle (including plant and equipment) in excess of requirements and standing in staging yard for an extended period, and consequent hire of plant and equipment and outsourced contracts whilst vehicles remain not fully utilised.
The City Manager was given the discretion to suspend any officials, including senior managers interfering with the process of finalisation of the detailed forensic investigation.
Sithole said as part of control measures a circular has been issued suspending the purchase of any new vehicles until the investigations are concluded and a full needs analysis is completed. A similar moratorium has also been placed on the auctioning of Council assets.
Mayor Nxumalo welcomed the investigation adding that they were shocked by the number of irregularities they discovered during their inspection in loco. “We were shocked when we discovered that there were many vehicles and equipment gathering dust after being parked in our yards for a very long time,” he said.
“We are dealing with this matter hands on and we support the efforts taken by the City Manager. We are a big city with a large fleet. We need to have proper management of our fleet.”
Deputy Mayor Nomvuzo Shabalala said it was clear that some of the vehicles may have been bought towards the end of the financial year to justify budget spending when there was no need for such. “This is tantamount to fiscal dumping and we must put a stop to it,” she said.
The City Manager will report back to EXCO about the full financial implications of engaging external capacity. But initial estimates indicate that about R704 000 could be required for a full two weeks engagement of 12 people to cover the 28 depots and other matters.
CITY BEACHES REMAIN CLOSED
A report detailing the extent of damage caused by severe weather conditions at the beachfront was tabled to EXCO.
Deputy City Manager for Community and Emergency Services, Musa Gumede said the effects of the high seas, wind speed and heavy rain was evident on certain parts of the City ‘s beaches and on the promenade, from Wedge Beach to North Beach.
Some of the consequences include large quantities of sand being deposited on the promenade, umbrellas dislodged, sand washed off from the beach exposing stones and rocks, litter bins displaced, covers of the sea wall were dislodged and electrical cables exposed as well as water flowing into the North Beach office and SAPS office.
“As a result of the strong tides we were advised by the Sharks Board that shark nets will be lifted in some parts and it would therefore be unsafe for bathers to utilise the beach. Through our communication channels we have advised the public not to use our beaches until such time that we announce that it is safe,” said Gumede.
Municipal staff have commenced with clean-up operations.
Mayor Nxumalo said: “These weather patterns are to be expected because of climate change. Damage to the beachfront will affect many people who enjoy the beautiful sight of the promenade. We are hopeful that the repairs will be completed ahead of the summer season where we expect to receive thousands of tourists. For now we urge our people to stay away from the bathing areas until it is safe.”
REPLACEMENT OF MOBENI HEIGHTS CREMATOR
EXCO also authorised the City’ Parks, Recreation and Culture Unit to purchase a new cremator for the Mobeni Heights Crematorium. The delay in finalising the repairs of the existing cremator at an estimated cost of R450 000 has severely affected service delivery, leading to many complaints from the public. After researching options to fast track the reuse of the cremator the Unit concluded that the option of replacing the cremator will be the best one to address the 12 month delay for the repairs and a further six months anticipated delay.
The replacement of the cremator will also address the compliance requirements regarding smoke emissions and the cost of maintenance as the existing machine was 20 years old.
An amount of R2.5million has been set aside for this purpose.
PARTNERSHIP WITH THE SHARKS
EXCO has mandated City Manager to negotiate and conclude an agreement with the KZN Rugby Union for a mutually beneficial partnership with Durban based rugby franchise, The Sharks. Sithole said the partnership emanated from engagements that have taken place between the City and the Sharks regarding cooperation in marketing Durban.
“The Sharks are a well-established brand and forming a strategic partnership with them will assist in our efforts to market the City especially abroad. It is part of our strategy to attract more tourists to the City,” he said.
Part of the partnership includes support for the City to bid for the hosting of an international rugby match between the Springboks and the All Blacks of New Zealand in August 2015.
“At this stage we do not know how much it would cost to host such a game but we will come back with a report to EXCO once financial implications are clear. As the City it is important to partner with rugby, but we want to extend this to other sporting codes that can assist in marketing our City,” said Sithole.
R100 DEPOSIT WAIVED FOR INFORMAL SETTLEMENTS ELECTRIFICATION
In a bid to streamline and fast track the delivery of electricity to informal settlement, EXCO agreed to waive the R100 fee required as a deposit for electricity to be connected into an informal dwelling. This is to facilitate a smooth implementation of electrifying informal settlements and rural communities qualifying for a 20A pre-paid supply installation.
EXCO was told that due to some households not affording the R100 deposit, it is difficult for the Municipality to electrify an entire settlement, resulting in some families being left out of the development.
Instead of paying upfront the deposit will be deducted gradually when the affected customers purchase their electricity top up tokens. “This step is meant to fast track service delivery and to ensure that no customer is left behind without electricity when their neighbours are getting electricity,” said Mayor Nxumalo.
HAPPY DIWALI
On behalf of EXCO and Council, Mayor Nxumalo wished all Hindus a happy Diwali. He said the celebrations represented the City’s diverse cultures and rich heritage.
