Committee’s draft oversight report

Meeting report

Opening Remarks
The Chairperson welcomed all Members presented and briefed them on the agenda of the meeting. The Chairperson accepted apologies from Mr C Brink (DA).

Draft Portfolio Committee on Cooperative Governance and Traditional Affairs Report on the Oversight Visit to the Limpopo Province 10 – 16 October 2019
The Chairperson allowed Members to interact with the Report and share their views. The Chairperson noted that on the Vhembe District, the Committee’s oversight findings showed there was no appetite by the Council officials to implement an audit and there was the need for the Draft Report to succinctly capture that.
Ms D Direko (ANC) also urged the Chairperson to note in the Report that in Vhembe, there are political killings which are aligned to the VBS saga and some members of ESKOM are also linked to this case. The Report should recommend Parliament put in place high-level security in the Vhembe district to protect the people who are now living in fear.

The Chairperson concurred with Ms Direko by noting that all those people in Vhembe who are connected to the VBS saga are now separated from their families and the Report should make note of this observation. She opined that the Report should make it clear that the people whose investments were stolen are poor people whose lives merely depend on selling tomatoes and money they had saved through stokvel.

On Mopani District, the Chairperson found the Report was not making it clear that the Council officials were not honest and truthful to the Committee when it visited the area. Members of the Committee all agreed with the Chairperson that in all the Councils they visited, the Report should capture that it was evident there was a lack of consequence management. The Chairperson, on Mogalakwena, pointed out the Report should make it clear the Council is completely disregarding the law and its prescripts and the people at this Council do not work but run the Council with the intention of looting. On Elias Motsoaledi, the Chairperson added that the Report was silent on the fact that the Council has been postponing the disciplinary hearing of the Municipal Manager - there was the need for the Report to capture that.

Mr I Groenewald (FF Plus) requested that the Report also makes it crystal clear that all municipalities visited were not following the law.

The Chairperson then moved to Fetakgomo-Tubatse municipality noting that the Draft Report was not making the VBS saga clear on this section and there was a need for revision.

Mr H Hoosen (DA) proposed that the Report should include a table of those who invested in VBS, the amount they invested and the losses incurred.

Mr K Ceza (EFF) concurred and pointed out that even the names of the officials implicated should also be added to the table.

 The Chairperson suggested the Report should also mention that in all Councils there is no willingness to uphold section 62 of the Constitution on civil proceeding and with the way things are, the money lost through VBS investments may not be recovered.

On Lepelle-Nkumpi, the Chairperson reiterated that the Draft Report should make it crystal clear that the Acting Municipal Manager at this Council showed commitment.

Mr B Luthuli (IFP) asked if the Committee could recommend that the mentioned Acting Municipal Manager at this council be appointed the substantive Municipal Manager at Lepelle-Nkumpi council.

The Chairperson responded that if the Committee makes such recommendations, that would have crossed the red line as it would have interfered with the selection process. Politicians in the area will make frantic efforts to move the Municipal Manager out of the Council even though he is the right candidate to clean up the mess in the municipality.

Mr Hoosen said the Draft Report should note that the financial recovery plan that the Acting Municipal Manager put in place for the losses in VBS in Lepelle-Nkumpi and the model he used should be recommended so that it gets replicated in all municipalities.

Ms Direko pointed out that the Draft Report should also mention that Lepelle-Nkumpi is the only municipality making frantic efforts to follow up with the HAWKS on the VBS matter as opposed to others who are just waiting.

The Chairperson advised Members the Draft Report also needs to mention the Accounting Officer at the Council for his cooperation. It should also be mentioned that there were also VBS investment in this Council. The Chairperson thanked Members for the level of commitment which they showed to make the oversight work a success.

Moving on to Thabazimbi, Mr Groeneweld highlighted there was a need for the Draft Report to explain, in the observations, how the municipality is being accused of acting unfairly. 

Mr Ceza suggested the Report should list the people who attended the oversight meetings so that the Report can be legitimised.

 The Chairperson said the Report should also make it clear that this is one of the few Councils that is not in the hands of the ruling party (ANC) but is in the hands of the opposition (DA). The Report should further note how the Council is shaping up under the hands of the opposition. On the role of National Treasury and Reserve Bank, the Report should outline the role of accountants, Accounting Officers, Municipal Managers, Mayors, Provincial Treasurers'  in these investment s. 

Mr Ceza said the Report should push that Parliament enacts an investment regulation that guides Councils on where they should invest.

On recommendations, the Chairperson said the Report should add the names of other officials who are implicated in the VBS scandal and summon them to Parliament. Further, as part of the recommendations, the Report should capture the fact that the Committee is calling the SA Police Service (SAPS) and HAWKS to present reports on how far they have gone with the matter.

Mr Hoosen concurred and urged the Committee to meet with the Hawks and ask them what they have done so far.

Ms M Tlou (ANC) noted that the Report should also include as a recommendation the need to have training centers that train Council officials on financial management.  

The Chairperson objected to this recommendation and noted that people are being trained time and again but are just lazy to read. The Committee should be conscious of the political matter which it should confront as politicians of using these councils as cash cows.

Mr Hoosen recommended there is a need to inculcate a passion to serve as municipal workers as this passion was fast eroding. 

Mr G Mpumza (ANC) recommended the Draft Report should also be clear that the Committee recommends that Councils be cautioned against engaging consultancy firms on work which Council officials are being paid to do. There must be political stability in councils so that they can perform.

Mr Hoosen said the Report should note that because of the sensitivity of the matter, the Chairperson of the Committee's life is in danger and further involvement in the matter by the Chairperson will be putting risk on her life and there is a need for the Chairperson to be extra careful.

Mr Mpumza echoed this and said the Committee should recommend that the Speaker of Parliament provide security to the Chairperson whenever she travels back home.

The Chairperson noted the concern and pointed out that she is aware of the risk involved but she is motivated by the desire to make a difference and she is very much aware that people are upset that next week she will be meeting with the Hawks.

The Chairperson recommended that the final adoption of the Report be deferred until next week with the amendments suggested today. The Report would be presented in the House next week. A motion on the matter would also be moved next week.

The Committee endorsed this and seconded that the Special Investigating Unit (SIU) and Hawks present on 18 November 2019.

The Chairperson thanked Members for their input

The meeting adjourned.