The Portfolio Committee on Cooperative Governance and Traditional Affairs calls on municipalities to adhere to the Local Government: Municipal Systems Amendment Act 3 of 2022 when recruiting for vacancies, to avoid recruiting persons under investigation or convicted for fraud.
The Act in clause 57a (3) specifically states that a municipal staff member dismissed for financial misconduct or for fraud may not be re-employed in any municipality for a period of 10 years. The committee has noted media reports of law enforcement agencies making arrests of officials in several municipalities suspected of fraud and corruption. The HAWKS recently arrested three municipal officials in Sekhukhune District Municipality in Limpopo and are looking for more suspects who siphoned R5.4 million from the municipality.
The committee is aware of reports of Amathole District Municipality that has appointed an employee who is facing criminal charges. There are a number of cases in the North West province too where a municipal official has been arrested for theft of tender documents. These incidents indicate commitment from the law enforcement agencies to curb crime in municipalities. The committee commends this commitment from law enforcement agencies and the National Prosecuting Authority.
However, the committee is concerned that the gains made by law enforcement agencies are thwarted by the lack of due diligence from municipalities who rehire municipal officials who are dismissed from other municipalities for fraud and corruption. This is concerning particularly as municipalities in South Africa are regressing in financial management and governance. The Auditor-General of South Africa has lamented the deteriorating financial state of municipalities for several years and it seems as if there is no appetite for improvement from local government.
The committee calls on municipalities to target qualified, ethical and principled persons when it recruits for municipal vacancies particularly for management positions. This is in an effort to ensure that municipalities meet their mandate of being efficient, effective and transparent and that conform to constitutional values and principles.