New legislation gives Auditor-General a set of sharp teeth

Auditor-general Kimi Makwetu has 26 government institutions that are perceived to be serial misusers of taxpayers’ money in his sights.

Speaking to City Press on Wednesday following the tabling of the 2017/18 local government audits in Pretoria, Makwetu said his office would soon activate his newly acquired powers to hold wrongdoers to account and possibly refer their cases for criminal prosecution.

The 26 would be the first batch – if found guilty – to be issued with a certificate of debt in a effort to recoup some of the billions of mismanaged public funds.

The amended Public Audit Act extended Makwetu’s powers to go after culprits allegedly responsible for irregular, unauthorised and wasteful expenditure.

It was signed into law by President Cyril Ramaphosa in November.

Material irregularity is defined in the act as fraud, theft, breach of a fiduciary duty or noncompliance with or contravention of the law that could result in a material loss, the misuse or loss of a material public resource or substantial harm to a public sector institution or the public.

In the 2017/18 financial year, Makwetu identified material noncompliance with key legislation at 92% of the municipalities – an increase from 85% in 2016/17, which was the highest level of noncompliance with laws since the 2011/12 financial year.

The act would not be implemented retrospectively, meaning those who had misused public finances in 2017/18 and in previous years would not be targeted unless some of them had a history of irregular expenditure and could form part of the 26 identified government institutions.

However, from the beginning of April, when the act came into effect, auditees would be held accountable.

The financial year for municipalities ends in June and ends for government departments in March.

This means offenders for the financial years ending after April 1 could face the wrath of Makwetu’s office, especially those with a history of committing irregular expenditure.

Those likely to be held accountable in government departments include ministers, members of executive councils, directors-general, superintendents-general, heads of departments and chief financial officers; in municipalities, mayors, councillors and municipal managers would have to account.

Makwetu said a decision had been made by his office to go after culprits in a phased approach.

“So, based on certain criteria, we took a view to identify a selection of municipalities and departments – those we are going to start with because it is a massive effort. You can’t implement a big amendment like this once in one year, otherwise people are going to fall over,” Makwetu said.

Sixteen government departments, the finances of which are legislated in terms of the Public Finance Management Act, and 10 municipalities, the finances of which are legislated in the Municipal Finance Management Act, were identified for the first phase.

He declined to disclose them, only saying they were spread across the provinces.

The criteria used, he said, were based on historical knowledge relating to questionable misuse of public finances.

“It’s largely things such as a history of irregular expenditure. It’s issues around the particular department’s significance in respect of its delivery on different projects and other considerations.

“It’s a combination of things that we’ve looked at, but we thought we needed to have [wide] coverage so that we didn’t have a concentration in one area and not in other areas. It was also really to make sure that, having trained the people and having applied ourselves to the implications of this, we can at least make a start,” Makwetu said.

He said that, for years, recommendations his office had made had been largely ignored by auditees.

His recommendations were previously not binding. However, the act now guarantees that remedial actions issued by his office would be binding.

Before referring matters for investigation or issuing a certificate of debt to those responsible, Makwetu’s office would ask those affected to comply with recommendations and remedial actions for a prescribed time.

They could make representations to an independent body – still to be constituted – to challenge his findings.

Gang-related battles in Westbury have claimed another two lives in the volatile Johannesburg suburb this week.

The surge in gang-related violence across South Africa recently prompted Police Minister Bheki Cele to roll out the Anti-Gang Unit countrywide. 

Cele announced this week that the AGU had been elevated to a national level, because “gangsterism is spreading across” the country.

He made this announcement in Parliament during the State of the Nation debate this week, a day after a community activist had raised concerns that the unit had been operating without a proper budget. 

In Westbury on Thursday night a man was shot and killed during what residents described as a gang war between three rival groupings – the Varados, Fast Guns and newly established Disciples gang.

Police spokesperson Captain Mavela Masondo said at about 19:30, the victim was at Dowling Street in Westbury when he was approached by a gunman who fired a shot at him.

“The victim was taken to hospital where he was certified dead on arrival. The motive for the killing is unknown at this stage and police have opened a case of murder for investigation,” he said.

No arrests have been made in this case.

Then on Friday evening, a 15-year-old was allegedly shot dead by a 16-year-old who was playing with a loaded firearm at a block of flats in Claremont, Westbury.

The teenage suspect is in police custody.

Masondo said the deceased and his friends were listening to music on the stairs of their home when the suspect arrived with a firearm.

‘He cocked the weapon again’

“The suspect then asked them ‘who is talking a lot’ among them. He took out a firearm and cocked it. He then released the magazine and informed the deceased and witnesses that it was a real firearm. He cocked the weapon again.

“The suspect pointed the gun to the ground and pulled the trigger. A bullet went off, hitting the ground, ricocheted and struck the deceased on his back and exited through his shoulder,” said Masondo.

Police found the weapon in the suspect’s possession.

“The suspect claimed the weapon was not his and it belonged to someone else in the area. Police proceeded to the person whom the gun allegedly belonged to. When police started questioning the alleged owner of the firearm, he claimed that it was his firearm. Further investigations revealed that the firearm was reportedly stolen and he was arrested for possession of an unlicensed firearm,” said Masondo.

The teenage suspect is expected to appear in court on charges of murder and possession of unlicensed firearm, while the other suspect linked to the gun is expected in court on charges of illegal possession of an unlicensed firearm.

Masondo said police are investigating if the two murders are gang-related.

READ: Warrant of arrest issued for cop allegedly linked to two Westbury gangs

While News24 was in the area on Saturday, three armed men exchanged fire at a block of flats in Newclare, Westbury. 

Community leader Shaheim Ismail said the two armed men who are known allegedly chased after another armed men seeking revenge for the death of the man who was killed on Thursday night along Dowling Street.

The deceased was believed to be a member of the Varados gang.

Residents, especially relatives of the deceased, refused to speak to News24 fearing for their lives. 

Secretary general of the messianic churches, Buyisile Ngqulwana who claims the African Transformation Movement (ATM) is the brainchild of ANC secretary general Ace Magashule and former president Jacob Zuma, says he is not shaken after the party slapped him with a R22m defamation lawsuit. 

“Nothing is going to shake me because I did not commit any crime. I was telling the truth,” he told News24 on Friday. 

Ngqulwana claimed Magashule suggested the organisation should start a political party and Zuma was roped in to assist it.

READ: ATM attempts to link messianic churches to Ramaphosa

The ATM has since disputed the claims that it was Magashule and Zuma’s brainchild.

Some in the ANC believe Magashule was involved, claiming that evidence had been handed over to the party in Cape Town as proof, News24 previously reported.

However, in a letter addressed to Ngqulwana – which was written by AJ Magigaba from M. Magigaba Incorporated Attorneys – the ATM stated that statements made by Ngqulwana were believed by the public as being “true whereas, in actual fact, the statements were blatant lies, solely intended to injure the reputation of our client in its capacity as a political party”.

Magigaba said the same statements were contained in Ngqulwana’s affidavit filed in support of an application before the Electoral Court and were believed by the media.

“At all material times, you acted under false pretences that you are the secretary-general of the council, although you are not.

“The members of the public then viewed our client as the proxy vehicle for Jacob Zuma and Ace Magashule, something that seriously damaged our client at the elections that was held on May 8, 2019,” read part of the letter.

Magigaba said as a result of Ngqulwana’s claims, the ATM won fewer seats than it would have, had he not “deceived” the public by his statement.

The party garnered two seats in the National Assembly.

ALSO READ: ANC confirms probe into claims that members helped create other parties

“As a direct consequence of your actions, our client suffered damages to an amount of R22m in which we are instructed to demand from you.”

Ngqulwana was given 20 days from the date of receipt of the letter to make payment or face legal action.

Ngqulwana told News24 he was unable to pay the money and that he does not have funds to defend himself in court.

“How did they arrive at R22m? I won’t be able to pay. I know what I stand for [and] I am speaking the truth. They are trying to disturb the investigations. They are trying to intimidate me [and] I won’t apologise to anyone because I did nothing wrong,” he said.

“I will be writing to the president [Cyril Ramaphosa] of the country asking for help. My life is at risk. The point that I was saying to people is that the ATM is a project of Ace Magashule and [Jacob] Zuma. It is clear they are trying to disturb this investigation that the ANC is undertaking.”  

KEEP UPDATED on the latest news by subscribing to our FREE newsletter.

– FOLLOW News24 on Twitter