EXTRACT FROM THE
UNCONFIRMED
MINUTES OF THE SPECIAL COUNCIL MEETING OF BITOU LOCAL MUNICIPALITY HELD IN THE COUNCIL CHAMBER, MUNICIPAL OFFICES, SEWELL STREET, PLETTENBERG BAY ON TUESDAY, 08 JUNE 2021 AT 9H00.Department: Office of the Municipal Manager Demarcation: All Wards
Portfolio Comm: n/a Delegation: Council
File Ref: 3/2/2/3/1
Councillor M M Mbali proposed that the below recommendations of the acting Executive Mayor be supported and further reported that Bitou Local Municipality received an unqualified audit opinion, but emphasised that matters were raised in the report that required the administration to look into. He further reported that the Provincial Treasury also raised certain gap areas in its technical report that needed to be corrected. Councillor S E Gcabayi then seconded the proposal of Councillor M M Mbali.
Councillor Nel in response proposed that the report be referred back to the administration in order for them to rectify the flaws and his proposal was seconded by Councillor A S M Windvogel.
Thereafter the Municipal Manager requested that the acting Manager: Governance and Compliance, Mr Groenewald brief Council on the progress to date in respect of the matters raised by the Auditor General and Ratepayers Association.
Mr Groenewald then responded that all matters as pointed out by the Auditor General in respect of the Annual Report were responded to, as far as possible, and that Council should take note that the report was accepted by Provincial Treasury. The comments received from the Ratepayers Association was received after the submission due date, and it was further reported that the Chairperson of MPAC indicated that comments of the ratepayers be responded to as a matter of courtesy only.
Councillor Swart raised a concern in respect of page 336 of the Annual report, under notes to the unaudited financial statements, item 70- related parties, which referred to Managers and officials doing business with the Municipality. He stated that he performed a due diligence process on the CIPC site and mentioned that the listed directorship in the document is not a true reflection, in particular referring to him being a Director of eight of the listed companies. He also raised concerns with the due diligence processes followed by the Supply chain management section in respect of its verifications, and that he can therefore not support the approval of an erroneous report, and mentioned that it raises serious concerns about the controls being exercised, and also referred to the findings of the Auditor General.
OVERSIGHT REPORT AND CONSIDERATION OF THE 2019/2020 ANNUAL REPORT
Resolution C/1/219/05/21
The Speaker then advised Councillor Swart to officially address his case in writing to the Municipal Manager, in order for the Municipal Manager to take up the case with the Auditor General.
Thereafter the Speaker confirmed with Councillor Nel on whether he still wanted to cast his vote against the decision and Councillor responded that he wants Council to refer it back to the administration to rectify the errors and therefore he sticks to his proposal.
The Speaker then responded that the report is not from Administration but the report of the Auditor General and Councillor Nel replied that there is still outstanding matters to address.
The Speaker thereafter asked whether there were any other proposers and seconders and he then placed on record that the recommendation of the acting executive mayor was proposed and seconded and that councillor Nel was of the view that it must be referred back.
Councillor Kamkam then highlighted the following recommendations of the MPAC committee 1. The accounting officer should ensure that all relevant chapters still outstanding as per provincial treasuries comments be included before a final document is issued
2. That the Mayors and Municipal managers forward be included before a final document is issued
3. That the internal audit section verify the correctness of the Amended Annual report
4. That management should develop an action plan to develop and implement corrective steps on main issues raised by the auditor general on 2019/2020 Audit outcomes
and asked whether the recommendations were executed, and Mr Groenewald replied that (1) and (2) were actioned, where after the report was forwarded to the Auditor General and not the internal audit section.
The Speaker in conclusion then confirmed that there was a proposer and a recommender for the below resolution and a proposer for the counter proposal without a seconder and therefore the below resolution is then carried.
Resolved;
1. That the Council consider the Oversight Report and approve the Annual Report in respect of 2019/2020 without reservations;
2. That Council take note of the recommendations within the Oversight Report and that the recommendations be implemented by the Municipal Manager;
3. That the Municipal Manager respond to the comments of the Plettenberg Bay Rate Payers Association within 14 days after the approval of the Annual Report in respect of 2019/2020.
Proposed: Councillor M M Mbali Seconded: Councillor S E Gcabayi
