GEORGE NEWS - In his address to Council at a meeting yesterday, George Mayor Melvin Naik placed a firm positive spin on the much publicised Nelson Mandela Boulevard road upgrade project.
According to Naik R19,8-million was spent on 32 targeted enterprises and material suppliers, giving locals a financial boost. This amount exceeds the projected R12,9-million for this purpose by 153%.
"Yes, there were some positives as well. I can tell you, this is not thumb suck, there is evidence to that, we had 28 subcontractors in that project," said Naik. He said the end is in sight and the project will be completed to the specified quality parameters. Naik said the growth pains go hand in hand with development initiatives.
"Sad to say, most times it [the roads project] was published for negative publicity but I want to show the upside, the positive side of the project today."
PBI Councillor Virgill Gericke said the commotion in Council revolved around the fact that a contractor was brought in from elsewhere, and not from the local contractors. "That was the issue. Why do you allow contractors to come into the city to take our people's money?"
Councillor Johan du Toit of the ACDP brought the attention to the use of another contractor to finish the project. "Why couldn't Muravah finish the work? They've received their R500-million," said Du Toit. "The picture you paint - that the work is 'almost done' - it is far from done." Read a letter and the municipal response on this issue on p. 41.
Bumpy ride
The suspension of the Director of Finance, Keith Jordaan, and the discussions around whether or not the Municipal Manager should be suspended featured in Naik's address.
"All of you are aware it was a bumpy ride these past few months. George Municipality was in the news for all the wrong reasons," he said.
According to Naik an accounting firm, FTI, has been appointed to investigate allegations of misconduct regarding investments on behalf of the municipality.
Jordaan has been suspended since the end of August for 60 days, pending an investigation into alleged financial misconduct. A report by a local law firm refers to certain incidents and actions taken by Jordaan, with regards to an amount of R350-million invested on behalf of the municipality at a financial institution.
A report on allegations of misconduct against Municipal Manager Trevor Botha is expected by the end of October.
Naik said the firm FTI has interviewed various municipal officials and external parties who were involved with the investment process, that resulted in the investments being placed with Old Mutual (OM). "They have not had any consultation with the Chief Financial Officer (CFO) to date, but we would like to conduct an interview with him prior to the issuing of our draft report," said Naik.
According to Naik the firm has acquired electronic copies of the CFO's laptops, documents stored on the server and e-mail boxes. "The electronic information was searched and reviewed and we identified other information pertinent to the OM investment process," said Naik.
"They [the firm] have obtained and reviewed numerous hard-copy documents that are relevant to the investigation. These include supply-chain management documents and other correspondence relevant to our investigation. They have met with OM Forensic Services and requested their assistance in accessing records and facilitating interviews with OM staff that were party to the investment process involving the municipality. OM are extending their cooperation in this matter."
PBI Councillor Virgill Gericke said the issue of the R50-million roads project revolved around the fact that a contractor was brought in from elsewhere.
Naik said the firm expects to receive feedback from OM during the course of this week. "FTI is planning another visit to George Municipality to consult further with employees (including the CFO, if possible). These consultations and subsequent processes are however dependent on the responses we receive from OM in the coming week."
Report on MM
According to Naik the last allegations of misconduct against Municipal Manager Trevor Botha is ongoing, and the attorney André Swart is busy with the investigation. Naik said a report on the matter can be expected by the end of October.
SAC Councillor Bazil Petrus said the constant attempts to get rid of the executive authority through a cowardly political process hampers service delivery.
SAC Councillor Bazil Petrus said the constant attempts to get rid of the executive authority through a cowardly political process hampers service delivery. ACDP Councillor Johan du Toit asked the mayor to obtain the reports in order to move on from the "whole saga".
Read related articles:
- Nelson Mandela Boulevard project nearly done
- Road upgrade: More equipment & workers
- Development a 'positive story'
- A year of road works awaits Thembalethu
- Nelson Mandela Boulevard upgrade long overdue
- 'Bulldozed' by Boulevard
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