UNCOOPERATIVE GOVERNANCE: Plan to write off R23bn is illegal, Treasury tells Nelson Mandela Bay
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 declared Nelson Mandela Bay's proposed R23 billion write-off of unauthorised, irregular and wasteful municipal spending (UIFWE) unlawful. The Municipal Public Accounts Committee (MPAC) recommended the write-off without conducting a required item-by-item investigation as mandated by the Municipal Finance Management Act (MFMA).
Acting City Manager Lonwabo Ngoqo submitted an affidavit supporting MPAC's recommendation, but the Treasury found the affidavit to be legally defective. The Treasury stated that a council resolution supporting MPAC's recommendation would be unlawful, as the municipality must recover UIFWE from the person responsible for it unless a committee has investigated the expenditure, found it irrecoverable, and recommended writing it off.
By 31 October, the municipality must demonstrate compliance with MFMA provisions and submit quarterly reports and supporting evidence for the write-off.
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