Committee Reports: OR Tambo District Municipality oversight visit & Eastern Cape ECD Grant performance

Meeting report

Committee Report on OR Tambo District Municipality oversight visit

The Chairperson tabled the report for consideration. The Committee went through it page-by-page and Members were invited to make comments and changes to the document.

Mr O Terblanche (DA; Western Cape) said that here is a trend over a few financial years and the Committee should highlight that. This is a continuous trend of irregular expenditure. It must be brought to the attention of both Treasury and the Auditor-General (AGSA) for whatever steps they deem necessary.

The Chairperson said there must be a report back to this Committee in terms of actions taken by the Municipality in addressing this matter. National Treasury, the AGSA and the municipality must report back within 90 days and the Committee must take control of that monitoring.

Mr L Gaehler (UDM; Eastern Cape) said that it cannot be expected for that municipality to come to the Committee. That municipality is unmanageable as corruption is the order of the day in that municipality.

The Chairperson said if the municipality does not account to the Committee whoever is investigating that municipality must come to inform the Committee of their findings.

A Committee Secretary said there is the matter of irregular expenditure and then there is what the Committee saw in terms of the projects. All those projects are water and sanitation projects and it is Municipal Infrastructure Grant (MIC) funded. So the correct entity to investigate is National Treasury with the Department of Cooperative Governance and Traditional Affairs (COGTA).  It can be stated that based on what the Committee had observed around the water projects, there is an escalation of costs and projects that run from one financial year to the next. Further, it can be added that there needs to be an investigation on whether the MIC funding is being used for the purpose set out in the Division of Revenue Act (DoRA).

Mr F Essack (DA; Mpumalanga) said he is happy with that format. As a Committee they need to make up their minds when it comes to situations like this whether the Committee takes a diplomatic soft approach or a harder stance.

Mr Terblanche referred to paragraph 6.2 and said it is not only about poor planning but also about poor execution.

Members of the Committee proposed lifestyle audits to be conducted in municipalities that have significant irregular expenditure.

Mr M Chabangu (EFF; Free State) moved to adopt the report.

Mr M Monakedi (ANC; Limpopo) seconded the adoption.

The report was adopted with the amendments agreed to.

Committee Report on Eastern Cape Province’s ECD Grant Expenditure and Performance

The Chairperson tabled the report for consideration. The Committee went through it page-by-page and Members were invited to make comments and changes to the document.

The Chairperson said the Eastern Cape Department of Social Development must be called back to the Committee. If it is possible, the Department will be called back in the fourth term.

A Committee Secretary suggested that it should say that the Department will be called back in early 2019.

The Chairperson said it would be either the fourth term or the first term in 2019.

Mr Gaehler moved to adopt the report.

Mr Monakedi seconded the adoption.

Consideration and Adoption of Committee minutes for the 22 August 2018

The Committee went through the minutes.

Mr Terblanche moved to adopt the minutes.

Mr T Motlashuping (ANC; North West) seconded the adoption.

The document was approved with no changes.

The meeting was adjourned.