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eThekwini municipality faces backlash over R8.3 million irregular expenditure

Sipho Jack|Updated
eThekwini municipality is under fire for R8.3 million in irregular expenditure linked to a skills programme, with allegations of a cover-up involving senior officials.

eThekwini municipality is under fire for R8.3 million in irregular expenditure linked to a skills programme, with allegations of a cover-up involving senior officials.

Image: Willem Phungula

The eThekwini Municipality is facing severe criticism after revelations surfaced regarding R8.3 million in irregular expenditure linked to a skills development programme initiated by the entity in 2021.

Reports of an alleged cover-up aimed at protecting senior officials from taking responsibility for the questionable expenditure associated with the Foundation Skills Programme have since emerged, raising concerns among city officials and residents alike.

A source who spoke to this newspaper on condition of anonymity claimed that Professor Mpilo Ngubane, the Chief Learning Officer of the eThekwini Municipal Academy, sought to divert blame from senior officials involved in the controversial project.

According to the source, Ngubane implicated former administrator Derrick Mthethwa, who oversaw the programme before retiring.

However, some officials who opposed the report argued that this version of accountability was misplaced. An affidavit from Mthethwa aligned with this view.

In his sworn statement, Mthethwa distanced himself from allegations of mismanagement relating to the financial discrepancies and maintained that he was not responsible for payments, which he said fell under the responsibility of the finance manager.

“The roles and responsibilities regarding budget management and the routing of invoices were clearly defined, and my retirement occurred six months before the contract’s expiration,” Mthethwa said.

In his response to the regularisation report prepared by Ngubane, Mthethwa stated: “The report does not accurately reflect the events during the relevant time. I am not responsible for the irregular expenditure incurred.”

Mthethwa’s denials were consistent with concerns raised by critics who argued that blaming him was a convenient way for the actual wrongdoers to avoid accountability and make him a scapegoat, particularly because he had retired before key events unfolded.

Ngubane defended the report he compiled and clarified that its contents did not establish guilt, but merely indicated that no disciplinary action could be taken once Mthethwa had retired.

“If Mr Mthethwa were still around, an enquiry would have taken place,” Ngubane said.

The origins of the irregular expenditure date back to a project aimed at enhancing municipal employees’ skills in critical areas in an effort to improve service delivery.

An initial report on the irregular expenditure was acknowledged in June 2021, and those findings led to a deeper examination of the financial management processes associated with the municipality’s programme.

While Ngubane insisted that corrective measures had been introduced to prevent future instances of irregular expenditure, Mthethwa raised concerns about accountability and what he described as a misinterpretation of contract management protocols.

“If there were financial irregularities relating to budget control or payment authorisations, those responsibilities fell within the finance department,” Mthethwa said, suggesting where attention should instead be directed.

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