Report on alleged financial misconduct

GARDEN ROUTE | KAROO NEWS - MEC of Local Government Anton Bredell issued a section 106 notice to the speaker of the Garden Route District Municipality (GRDM), making it clear that he has reason to believe that maladministration or other serious malpractice has occurred (or is occurring) within the district municipality.

The notice was issued to Speaker Georlene Wolmarans last Friday 17 March. In its feedback on the matter, GRDM said the report will serve at an ordinary council meeting next Tuesday, 28 March.

Wouter Kriel, spokesperson for Minister Bredell, said the notice was issued after objectively assessing all relevant information at the minister’s disposal.

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 from 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.”

MEC Anton Bredell

Earlier reports in the media

George Herald reported on the matter in four articles last year between April and May. 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 an 18-page document released last year at the end of May by a group that calls itself the Garden Route Corruption Busters, they ask 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 a MM of a category five municipality, and they believe 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."

In their feedback this 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.

Monde Stratu GRDM municipal manager.

GRDM not surprised, but concerned about a leak

Asked for comment on the matter, the GRDM sent a statement via their communications department, saying it had known about the Section 106 notice for some time.

“The Garden Route District Municipality (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.”

In its comment the GRDM expresses its concern about an alleged leak of confidential information: “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.”

Georlene Wolmarans GRDM Speaker.

The rest of GRDM’s comment reads as follows:

“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.

“In response to the letter addressed to the Speaker of GRDM, it should be noted that the details requested by the MEC are not new as they were previously shared with his office. The remuneration 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 supported 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.

“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.”

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