VKLM MM and CFO suspended
The Victor Khanye Local Municipality (VKLM) has suspended the Acting Municipality Manager (MM) Linda Zwane and the Chief Financial Officer (CFO) Sthokozile Mahlangu following procurement irregularities and a breach of purchase procedures. The VKLM council resolved to suspend the two principals pending investigations at a council sitting where they unanimously agreed to suspend Linda Zwane and Sthokozile Mahlangu.
The MM and the CFO stand charged for breach of procurement procedures in that whilst the VKLM municipality has a longstanding service level agreement with a service provider for the procurement and installation of prepaid meters the agreement was overlooked and different suppliers w
here engaged to supply the prepaid meters. The VKLM municipality has a standing agreement with Ruvik energy a company that supplies, installs and maintains the electrical prepaid meters. The Service Level Agreement outside of exclusivity in terms of solutions offered by the organisation also indicates that Ruvik energy is mandated to supply new prepaid meters to the municipality for free.
This then brings us to a point where we question the true reason behind why the CFO and the MM who both are accounting officers within the VKLM municipality would choose to spend three hundred and thirty-nine thousand rand of the ailing municipalities money when they could have acquired the 400 prepaid meters for free. It is no secret that VKLM as a municipality is in the red and continually sinks deeper as we borrow from John to pay Jill. We are in a rat race and are reliant on grants and other allocations just to stay operational.
The Municipal Financial Management Act of 2003 states that all contracts above thirty thousand rand (R30000,00) must be advertised and that for purchases over two hundred thousand rand (R200,000.00) there must be a competitive bidding process. The MM and the CFO could also stand accused of parcelling the awarded contract, the required need was for four hundred prepaid meters but the two accounting officers spread the need across two organisations in half so as to ensure that the cost of the prepaid meters per company did not exceed the bidding line figure of two hundred thousand rand (R200,000.00). This saw the two companies supply the prepaid meters at one hundred and sixty thousand rand (160,000.00) and at one hundred and seventy-nine thousand four hundred rand (179,000.00).
We desire to hear your comment on this matter Highveld Chronicle reader, please feel free to contact us on the email@example.com.