The National Treasury says Nelson Mandela Bay's proposed R23bn write-off is unlawful because the Municipal Public Accounts Committee failed to investigate the expenditure item by item, while an affidavit prepared by the acting city manager, Lonwabo Ngoqo, is legally defective.
The National Treasury has made no bones about the unlawfulness of the manner in which Nelson Mandela Bay (NMB) metro is trying to write off R23-billion in unauthorised, irregular, fruitless and wasteful expenditure (UIFWE).
In response to questions from the Daily Maverick, the Treasury said that if the council approves the staggering R23-billion write-off without following proper procedures, officials will be required to provide evidence of the processes undertaken by 31 October.
This comes after NMB's Municipal Public Accounts Committee (MPAC) earlier this month recommended writing off R23-billion in UIFWE without the requisite item-by-item investigation required by the Municipal Finance Management Act (MFMA).
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