Lindsay Dentlinger
24 August 2009
The city council's standing committee on public accounts (Scopa) has recommended corrective action against at least three of its officials involved in the payment of R6,6-million to a contractor without council permission.
In January, Deputy Mayor Ian Neilson requested an investigation into the matter after the mayoral committee was asked to condone expenditure of R346 000 for this purpose, long after the payment (to acquire servitudes over Paarl farmlands to support a pipeline for the Fisantekraal sewer) was made.
Following an investigation by the city's forensic department, however, it was found that 10 similar payments to the value of R6,6-million had been made to a contractor to engage with various land owners on behalf of the city in order for the servitudes to be acquired.
The city reimbursed the contractor without the necessary authority having been obtained.
The servitude had to be acquired to support a pipeline over 14 properties for the construction of the Fisantekraal treatment works.
During Scopa's investigation of the matter, it found that the property management department had intended to request a further approval of payment of R799 500 plus a solatium (compensation) of R38 985 (excluding VAT) to acquire a portion of Paarl farm 724.
It was the finding of the city's forensic department that the amount of R346 000 - which was brought into question by mayco - was included in the amount of R799 500, and had already been paid.
A Scopa sub-committee, led by the DA's Stuart Pringle, recommended that the expenditure of R346 000 in lieu of the acquisition of a servitude be condoned.
But he said the committee wanted feedback on whether the servitudes had actually been registered, or the city would face further risk.
Scopa chairman Peter Gabriel, of the ANC, also requested feedback about the type of corrective action that would be taken against the official who certified the payments before approval was granted by the mayoral committee.
He said he was surprised to learn that R6m had already been spent without approval.
Scopa has recommended that action also to be taken against the project manager in the water and sanitation department for instructing the contractor to compensate the owner of the farm.
The city's property management department is also to take action against the city official responsible for failing to complete and submit the required reports to the mayoral committee for condonation of the payments to the contractor.
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