You've got mail: GRDM's 106 notice from Bredell

Update

GEORGE NEWS - A section 106 notice to the speaker of the Garden Route District Municipality (GRDM), in which MEC of Local Government Anton Bredell says he has reason to believe that maladministration or other serious malpractice has taken place or is occurring within the district municipality, was discussed on Tuesday 28 March as a confidential item in the district council.

The notice was issued to Speaker Georlene Wolmarans on Friday 17 March and availed 14 days for response, which means D-day is tomorrow, Friday 31 March.

"Council took note of the report," confirmed feedback from the GRDM. "[It] detailed confidential e-mail exchanges between the Western Cape Provincial MEC Anton Bredell for Local Government and the GRDM relating to allegations submitted to the MEC.

"Council reiterated its commitment to co-operate with the MEC's office as it has been doing all along, with its rights remaining fully reserved."

GRDM said last week that the details requested by the MEC are not new, as they were previously shared with his office. The GRDM expressed concern about an alleged leak of confidential information.

Alleged financial misconduct

According to Wouter Kriel, spokesperson for Bredell, the report relates to alleged financial misconduct, such as improper gratuity payments to certain political appointees, and a failure to comply with the upper limits of total remuneration packages payable for municipal managers and managers directly accountable to the municipal manager.

"The department remains in contact with the municipality for further information around the 106-document," said Kriel.

"The notice was issued after an objective assessment was conducted by officials of the Department of Local Government and the provincial minister. Should it be determined that payments were made to officials that they were not entitled to as such, or that the payments were unlawful, then the irregular expenditure could be recovered as stipulated in the Municipal Finance Management Act."

Corruption busters

In an 18-page document released last year at the end of May by a group that calls itself the Garden Route Corruption Busters, they asked Bredell to investigate serious allegations against the GRDM.

The group claimed that Stratu, during his five-year term as MM, earned approximately R4,8-million in excess of the maximum permitted salary package for an MM of a category five municipality, and they believed him to be guilty of financial misconduct as well as a financial offence.

Asked about the matter at the time, Bredell stipulated that the remuneration paid to municipal managers is regulated by the Upper Limits Notice, which is published by the national minister of Cogta.

"Municipalities are required to remunerate municipal managers within the ambit of the applicable legislative framework."

GRDM said yesterday that Mayor Memory Booysen has received the same allegations of financial misconduct and offences against the municipal manager, submitted by the Garden Route Corruption Busters (GRCB). "The GRCB is an 'astroturfing' or otherwise known as a 'front group'. The same frivolous allegations were previously alleged by the group which is backed by a handful of politically affiliated individuals." Booysen said the allegations were again dismissed by the GRDM Council.

No surprise, but concern over leak

GRDM said they had known about the Section 106 notice for some time, but expressed their concern about an alleged leak of confidential information.

"The GRDM was notified by the Western Cape MEC for Local Government, Anton Bredell, regarding a Section 106 investigation, which was not surprising as the municipality had been previously alerted some months ago about it by several sources who claimed to have been in possession of this section 106 notice. However, it has become apparent that what was described as an assessment was, in fact, an investigation.

"It is also extremely concerning that the notice and its confidential contents were leaked to third parties before the GRDM executive mayor, speaker and council officially received it. Individuals who were not supposed to have been privy to such confidential information before the GRDM received it.

"The GRDM had previously raised concerns with the MEC about the issuance of a Section 106 notice and the unauthorised disclosure of the information to third parties and advised him that it compromises whatever he was doing. These circumstances suggest ulterior motives behind those 'investigating' the GRDM, as there appears to be a deliberate effort to perpetuate the story and discredit the GRDM, despite a lack of evidence to support such actions."

Earlier reports in the media

George Herald reported on the matter in four articles between April and May last year. In the article Gratuity payments raise red flags of 28 April 2022, the matter was first mentioned in public at a GRDM council meeting, by Wolmarans. At the time Bredell afforded the speaker the opportunity to comment before taking any steps in terms of a section 106 investigation.

The gratuity payment to GRDM Municipal Manager Monde Stratu was listed in the financial statements of 30 June 2021, as just under R1m (R979 000). The other gratuity payments were paid to administrative personnel who were appointed in political office, whose term ended with those of the councillors.

Asked about GRDM's gratuity policy for an update in the George Herald article GRDM gratuity policy: Council awaiting feedback, both the constituency head of GRDM, Tertuis Simmers, and Bredell said it is not the norm for political appointees to receive a gratuity payment when their contract comes to an end.

In their feedback last week, Kriel said Bredell urges the GRDM to co-operate with the process and provide the requested information, documentation and responses to the issues raised in the notice.

GRDM Speaker Georlene Wolmarans

Public domain

According to the GRDM, the remune-ration of the municipal manager and other senior managers has always been in the public domain, and there has never been an issue with the current appointment of the GRDM municipal manager, which was endorsed by the MEC.

"The waiver for this term was also suppor-ted by the MEC - waivers are supported per term, not per year. It is common practice and allowed by the upper limits of total remuneration packages payable to municipal managers and managers directly accountable to municipal managers, and it is a practice in the Western Cape and the country, to be remunerated above the upper limits by means of a waiver," the GRDM said.

"It should also be noted that matters pertaining to policy in question have already been scrutinised and concluded by various council structures, including the Municipal Public Accounts Committee, the Audit and Performance Audit Committee, the GRDM Council, and the Auditor General of South Africa. These bodies and structures concluded that everything was in order, and no irregularities were found. Therefore, all necessary checks and balances have been completed."

MEC Anton Bredell