Without any debate, the careless disregard for taxpayer’s monies is blatantly obvious to the layman but, considering those organisations reluctance to rectify the situation and punish those responsible, it certainly helps to bolster the case against them with relevant laws.
Campher is a local government consultant (law, supply chain management processes, risk management and contract management). He served on the first democratically elected Council of Knysna. His comment serves the public interest so here it is:
“I want to respond to the Lauren Waring Lie article.
Advocate Wessels is supposed to be a lawyer and should have acquainted himself with the provisions of the Municipal Finance Management Act 56 of 2003.
If you do an investigation then they must do it like they have done the Nkandla investigation. Advocate Wessels should be advised that Section 67 of the MFMA deals with ‘FUNDS TRANSFER TO ORGANISATIONS AND BODIES OUTSIDE GOVERNMENT’.
Now, Section 67(1) provides that: “Before transferring funds of the municipality to an organisation or body outside any sphere of government otherwise than in compliance with a commercial or other business transaction, the accounting officer (Lauren Warring) must be satisfied that the organisation or body-
(a) has the capacity and has agreed-
(i) to comply with any agreement with the municipality;
(ii) for the period of the agreement to comply with all reporting, financial management and auditing requirements as may be stipulated in the agreement;
(iii) to report at least monthly to the accounting officer on actual expenditure against such transfer, and
(iv) to submit its audited financial statements for its financial year to the accounting officer.
(b) implements effective, efficient and transparent financial management and internal control systems to guard against fraud, theft and financial mismanagement, and
(c) has in respect of previous similar transfers complied with all the requirements of this section.”
I wish to state further that it is inappropriate to have a Service Level Agreement between the municipality and Knysna Tourism under the current arrangement because Knysna Tourism is not rendering a municipal service.
I am further of the view that Knysna Municipality is completely in breach of section 33 of the MFMA and the Municipal Manager is in breach of section 61 of the same Act.
Mike, I think you should take up these matters as outlined above with Adv Wessels.”
Question: Please explain what you said: “I wish to state further that it is inappropriate to have a Service Level Agreement between the municipality and Knysna Tourism under the current arrangement because Knysna Tourism is not rendering a municipal service.”
Answer: A service level agreement (SLA) can only be entered into between a municipality and a service provider of that municipality e.g. when a municipality appoints a firm of attorneys to provide certain legal services. The SLA follows the supply chain management process (tender, written quotation or quotation.) Lauren avers in her correspondence with the Public Protector that the municipality is giving Knysna Tourism (KT) an annual grant. If it’s a grant, then the provisions of section 67 of the MFMA apply… and there must be a grant-in aid agreement between the municipality and KT.”
Answer: As I have advised previously, the Public Protector should investigate the actions of the municipality since the municipality claims that KT is not a municipal entity. The fact of the matter is that public funds are been used to effectively run KT. If the municipality does not provide the funds, KT will effectively close it doors.
Question: The problem has always been KM saying that KT isn’t a municipal entity but, referring to Chapter 11 of the MFMA, the Supply Chain Management Side:
- A: 110. (1) This Part, subject to subsection (2), applies to –
- (a) the procurement by a municipality or municipal entity of goods and services.
Even if they say the “municipal entity part” doesn’t apply, sure the “procurement by a municipality” part applies to KM?
- (c) the selection of contractors to provide assistance in the provision of municipal services otherwise than in circumstances where Chapter 8 of the Municipal Systems Act applies.
Answer: You are spot on with regards to this. Additionally, there should then be a grant-in aid agreement and the provisions of sections 33 and 67 of the MFMA must be complied with.
The Law Against Corruption in South Africa bolsters Campher’s letter with:
People in positions of authority in the PUBLIC AND PRIVATE SECTORS must report corruption, and other crimes listed in the Act involving more than R100 000, to the police. If they don’t, they will be guilty of a crime.
The South African Bill of Rights states:
(32) Access to information: Everyone has the right of access to any information held by the state and any information that is held by another person and that is required for the exercise or protection of any rights.
You can read more of such at ‘Knysna Corruption 2: The Laws Against Corruption in South Africa’.
In the next chapter of this blog we’ll discuss some of those responsible for the cover-up and denial of accountability – ‘Tourism Truth #5: Winde, Myers & Moos Turn Their Backs on Knysna’.
It is so IMPORTANT that this issue be spread throughout our town, discussed and the matter questioned. PLEASE SHARE THIS POST and it’s follow-ups. Those of you who are Knysna Tourism members, please ensure that you email your queries (rather than verbal, so that there’s a track record) to Knysna Municipality and Nan Raturat, the Chairperson of the Knysna Tourism Board. When addressing the latter, be very clear that she respond ( not Greg Vogt).