Outrage as eThekwini Municipality’s MPAC Recommends Write-off Over R727 Million in Irregular Expenditure

ActionSA is outraged by the recommendation made by the eThekwini Municipality’s Municipal Public Accounts Committee (MPAC) to write-off R727 251 789.00 in irregular expenditure which incurred during the Revenue Management System (RMS) Project, carried out by the City dating back to 2003.

The implementation of the project was set to cost municipal rate-payers a sum of R90 million, but it ultimately accumulated by over 800% over the years and reached a staggering R727 million.

The RMS was spearheaded by then city council in an effort to facilitate revenue management, and save time while increasing efficiency amongst many things.

But, it became too burdensome for the residents of eThekwini from the outset, often miscalculating residential bills for double or triple the normal amounts.

City leaders then saw fit to appoint someone to assess the viability of the RMS, and whether it should continue as normal, or be discontinued. The city advisor recommended that the system should continue as normal.

Oddly, the individual was then awarded the responsibility to monitor the implementation of the system, while receiving a handsome salary of approximately R650 000 per month.

ActionSA contends that this rises to a serious conflict of interest because the very person entrusted to assess the efficacy of the system stood to gain from its continuation and therefore could not possibly proffer objective advice in the interest of the city and its residents because they were eclipsed by his own craven self-interest.

The MPAC’s recommendation to write-off this amount on the basis that:

The Municipality has derived value from the system as it is currently utilised as a revenue billing and receipting system, and in any event the amount that could have been recommended for recovery has prescribed, no disciplinary processes can be undertaken, nor can any amount be recovered.”

This reckless decision-making and poor planning by then city officials and councillors is one that has ultimately led to this outcome, and it us up to those who currently occupy council seats to ensure that those responsible are brought to book.

Residents of eThekwini have the right to know that those who implemented and allowed the continuation of the system, despite glaring evidence depicting that the system was flawed, are made to account.

The municipality was aware of these challenges and the impractical inflation caused by the system to ratepayers of eThekwini, however, instead of doing away with it and writing off the debt accumulated by ratepayers, they opted to introduce a debt relief programme for residents to make arrangements towards paying off the incorrect bills.

Removing the ANC and its companions from ruling over the city has become a matter of urgency before residents suffer yet another blow due to the lack of political will from city leaders.

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