Batohi says first step to solve problem is to improve governance and hire people with integrity and right skills
13 June 2023 - 20:31
byLinda Ensor
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National director of public prosecutions Shamila Batoyi. Picture: FREDDY MAVUNDA
Local government corruption came under the spotlight in parliament on Tuesday with reports from law-enforcement agencies on more than 100 cases being investigated.
Leaders of the Special Investigating Unit (SIU), the Hawks, the SAPS and the National Prosecuting Authority (NPA) briefed parliament’s co-operative governance and traditional affairs committee on progress in the fight against corruption in municipalities, which often involves mayors, municipal managers and senior officials.
Municipalities have been identified as a vulnerable sector in terms of corruption. A dedicated Local Government Anti-Corruption Forum with the SIU as chair is in operation. Of the 257 municipalities in the country, 123 have cases of corruption being investigated by the Hawks.
It emerged from the briefings that municipalities in North West and Free State have been particularly hard hit by corruption.
SIU chief national investigations officer Leonard Lekgetho told MPs that after its investigations R1.7bn related to local government corruption was under civil litigation in 12 cases at the special tribunal and the high court. This excludes cases related to Covid-19.
The SIU made 273 referrals since 2014 to the NPA for prosecution at 15 municipalities for alleged crimes such as fraud, bribery, corruption and contraventions of the Municipal Finance Management Act. In addition, 169 referrals had been made to municipalities for disciplinary action and 48 referrals for administrative action.
Altogether R10m had been recovered so far. These figures exclude actions taken in relation to Covid-19 procurement for which 184 referrals were made for disciplinary action, 79 NPA referrals and 62 administrative referrals.
Lekgetho said that the SIU makes recommendations to municipalities when their systems are found to be defective. It also worked with municipalities to ensure there is consequence management.
Hawks head Lt-Gen Godfrey Lebeya reported that 325 cases (excluding those related to Covid-19 procurement) were on hand involving 123 municipalities. He said that one case could involve more than one municipality. Among these matters in hand were 80 court cases under way and 155 under investigation.
Of the cases in hand, the highest number were in North West (64 cases involving 18 municipalities) followed by Free State (60, 20), Eastern Cape (46,17), Gauteng (39,7), Mpumalanga (35,12), Limpopo (30,21), KwaZulu-Natal (19, 10), Western Cape (21,12) and Northern Cape (11.6). Of the 39 cases in Gauteng, 20 relate to the City of Tshwane.
SAPS maj-gen Lesley Magson said 14 police investigations took place in relation to Covid-19 corruption: five in KwaZulu-Natal, one in Limpopo and eight in the Western Cape, with four on the court roll and 10 under investigation.
Deputy public prosecutions director Rodney de Kock reported that the NPA had 229 cases of local government corruption under investigation and 88 in court, with 25 finalised since 2021. The Fusion Centre, a collaboration of law enforcement agencies and other authorities in the Financial Intelligence Centre, had 20 cases: 18 under investigation and two in court.
National director of public prosecutions Shamila Batohi stressed that prosecution alone would not solve the problem of local government corruption. The NPA, she said, came at the end of the process. What was needed as a first step was to improve governance in municipalities and ensure that people with integrity and the right skills were employed.
Responding to MPs’ observations about long delays in investigations and prosecutions, Batohi agreed on the need to move faster against corruption but pointed to capacity constraints in law enforcement agencies. “This seriously impacts on the speed of investigations,” she said.
Reports of corruption follow the recent report on the 2021/22 audit outcomes of local government by auditor-general Tsakani Maluleke, which noted that local government was characterised by dysfunctional municipalities, financial mismanagement, council and administrative instability and crumbling municipal infrastructure.
Most of the municipalities have been run into the ground due to maladministration, looting and corruption; Others were dogged by cash-flow challenges, and struggled to provide basic services and pay staff and service providers.
The report on audit outcomes said municipalities racked up R4.74bn in fruitless and wasteful expenditure in the review period. The estimated financial loss from noncompliance and fraud was R5.19bn.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Parliament focuses on local government corruption
Batohi says first step to solve problem is to improve governance and hire people with integrity and right skills
Local government corruption came under the spotlight in parliament on Tuesday with reports from law-enforcement agencies on more than 100 cases being investigated.
Leaders of the Special Investigating Unit (SIU), the Hawks, the SAPS and the National Prosecuting Authority (NPA) briefed parliament’s co-operative governance and traditional affairs committee on progress in the fight against corruption in municipalities, which often involves mayors, municipal managers and senior officials.
Municipalities have been identified as a vulnerable sector in terms of corruption. A dedicated Local Government Anti-Corruption Forum with the SIU as chair is in operation. Of the 257 municipalities in the country, 123 have cases of corruption being investigated by the Hawks.
It emerged from the briefings that municipalities in North West and Free State have been particularly hard hit by corruption.
SIU chief national investigations officer Leonard Lekgetho told MPs that after its investigations R1.7bn related to local government corruption was under civil litigation in 12 cases at the special tribunal and the high court. This excludes cases related to Covid-19.
The SIU made 273 referrals since 2014 to the NPA for prosecution at 15 municipalities for alleged crimes such as fraud, bribery, corruption and contraventions of the Municipal Finance Management Act. In addition, 169 referrals had been made to municipalities for disciplinary action and 48 referrals for administrative action.
Altogether R10m had been recovered so far. These figures exclude actions taken in relation to Covid-19 procurement for which 184 referrals were made for disciplinary action, 79 NPA referrals and 62 administrative referrals.
Lekgetho said that the SIU makes recommendations to municipalities when their systems are found to be defective. It also worked with municipalities to ensure there is consequence management.
Hawks head Lt-Gen Godfrey Lebeya reported that 325 cases (excluding those related to Covid-19 procurement) were on hand involving 123 municipalities. He said that one case could involve more than one municipality. Among these matters in hand were 80 court cases under way and 155 under investigation.
Of the cases in hand, the highest number were in North West (64 cases involving 18 municipalities) followed by Free State (60, 20), Eastern Cape (46,17), Gauteng (39,7), Mpumalanga (35,12), Limpopo (30,21), KwaZulu-Natal (19, 10), Western Cape (21,12) and Northern Cape (11.6). Of the 39 cases in Gauteng, 20 relate to the City of Tshwane.
SAPS maj-gen Lesley Magson said 14 police investigations took place in relation to Covid-19 corruption: five in KwaZulu-Natal, one in Limpopo and eight in the Western Cape, with four on the court roll and 10 under investigation.
Deputy public prosecutions director Rodney de Kock reported that the NPA had 229 cases of local government corruption under investigation and 88 in court, with 25 finalised since 2021. The Fusion Centre, a collaboration of law enforcement agencies and other authorities in the Financial Intelligence Centre, had 20 cases: 18 under investigation and two in court.
National director of public prosecutions Shamila Batohi stressed that prosecution alone would not solve the problem of local government corruption. The NPA, she said, came at the end of the process. What was needed as a first step was to improve governance in municipalities and ensure that people with integrity and the right skills were employed.
Responding to MPs’ observations about long delays in investigations and prosecutions, Batohi agreed on the need to move faster against corruption but pointed to capacity constraints in law enforcement agencies. “This seriously impacts on the speed of investigations,” she said.
Reports of corruption follow the recent report on the 2021/22 audit outcomes of local government by auditor-general Tsakani Maluleke, which noted that local government was characterised by dysfunctional municipalities, financial mismanagement, council and administrative instability and crumbling municipal infrastructure.
Most of the municipalities have been run into the ground due to maladministration, looting and corruption; Others were dogged by cash-flow challenges, and struggled to provide basic services and pay staff and service providers.
The report on audit outcomes said municipalities racked up R4.74bn in fruitless and wasteful expenditure in the review period. The estimated financial loss from noncompliance and fraud was R5.19bn.
ensorl@businesslive.co.za
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