Unauthorized and wasteful expenditure – Municipal Manager arrested

South African Police Service

Unauthorized and wasteful expenditure – Municipal Manager arrested
Unauthorized and wasteful expenditure - Municipal Manager arrested

Mr Ngamela Phakade (50), a Municipal Manager at King Sabata Dalindyebo Local Municipality appeared at Mthatha Serious Commercial Crime’s Court on 5 November 2021 and was released on R20 000-00 bail and will appear again on the 18 November 2021.

During the 2011 financial year, Mnquma Municipality planned, funded and managed roads projects.

The Infrastructure Directorate initiated the tender process for the construction/ revitalizing of Butterworth township roads, which was awarded to a said Joint Venture.

In executing the aforementioned tender, the Municipality had to confine themselves within the legislative framework of 2001 Preferential Procurement Policy Framework Act of 2000 Regulation 11.

Phakade a former Municipal Manager allowed the process to go through without doing due diligence in ensuring that the aforesaid relevant policy has been complied with.

Despite being given legal advice by the Municipal Legal Official not to continue with a vague specification, he allowed it to happen under his watch.

As the Accounting Officer, he deliberately and grossly failed to take reasonable steps to implement the municipality’s SCM Policy and further failed to take all reasonable steps to prevent unauthorized and wasteful expenditure in terms of section 173(1) of the MFMA.

The Municipality budgeted for R18 million but under the watch of the said Accounting Officer, expenditure drastically went up to the amount of R36 million with the actual loss of R18 million.

The matter was referred to Hawks’ Serious Corruption Investigation by the Provincial Treasury which necessitated the investigation.

On the 20 October 2021 the NPA took a decision to prosecute the Municipal Manager for contravention of the MFMA, then on the 3 November 2021 a warrant of arrest was authorised which led to his appearance.

SAPS Newsroom

SOURCESouth African Police Service