Ndlambe ad 'flawed'

JON HOUZET

CONCERNS have been raised over an advertisement for Ndlambe's audit committee, which allegedly contravenes the Municipal Finance Management Act (MFMA).

The advert in TotT's sister newspaper The Herald on Tuesday gave only three days for members of the public to apply to serve on the audit committee, which is meant to be an independent advisory body that advises council and municipal management on matters relating to internal financial control and internal audits, risk management, accounting policies, performance management, effective governance and the adequacy, reliability and accuracy of financial reporting and information.

Each municipality is required to have an audit committee by law, and the audit committee itself has to comply with the MFMA.

According to the MFMA, the committee is meant to have access to the municipality's financial records and other relevant information and liaise with the municipality's internal audit unit and whoever is designated by the Auditor General to audit the municipality's financial statements.

The committee also carries out investigations into the financial affairs of the municipality at council's request.

Ndlambe's advert said "council wishes to enhance its developmental role and the transparency of its administration which will give the local community confidence in council's stewardship over and utilisation of public funds.”

The committee has to "consist of at least three persons with appropriate experience, of whom the majority may not be in the employ of the municipality”, according to the MFMA. One of the members who is not in the employ of the municipality must be appointed chairperson.

Ndlambe Action Group (Nag) chairman Derek Victor said he was concerned about the inclusion of a statement at the bottom of the advert that Ndlambe is an equal opportunity and affirmative action employer and the provisions of the Employment Equity Act would be complied with.

"The Employment Equity Act is irrelevant,” said Victor. "They're looking at competencies here, not enforced employment practices.

"This municipality has suffered enough over mindless deployment. Do they want to perpetuate this in what is a controlling body?” he said.

"These are crucial appointments. It's right and proper that they advertised it but the advertisement is flawed.”

A former municipal employee, who did not want to be named, also expressed concern over compliance with the MFMA if the municipality "employed” people to serve on the audit committee.

Victor also questioned whether three days was enough notice to receive applicants. "With the added disincentive that it's an equal opportunity appointment. Are they going to get the people they want applying?”

Victor added that ideally in the context of audit procedure – although it is not legislated – the municipality should take input on the audit committee from community-based organisations such as the various ratepayer bodies.

Municipal spokesman Cecil Mbolekwa said the advert was placed late as the municipality received a quotation late from "the potential suppliers”.

"The employment equity (inclusion) does not necessarily give the impression of full-time employment, it also covers appointment in terms of short-listing, interviews and entering into a short-term contract,” he said.

He would not say how much committee members will be paid.

The head of the Public Service Accountability Monitor (PSAM), Derek Luyt, said in his opinion the placing of the advert was unreasonable.

"Allowing three days (for applications) for something as important as an audit committee is not reasonable.”

Jay Kruuse, head of monitoring and advocacy at PSAM, said: "The MFMA does not require employment equity considerations for appointment of candidates to the audit committee.”

But he said it looked like the municipality was "covering its bases” because of the existence of the Employment Equity Act.

Provincial local government spokesman Mvusi Sicwetsha said he could not comment on either the timeline of the call for applications or the inclusion of the statement about employment equity in the advert, as it was the municipality's decision.

"Our only interest is that all municipalities have functional audit committees in place,” said Sicwetsha.

Ndlambe's advert calls for "suitably qualified” candidates and factors which will influence their appointment include: professional qualifications; proven expertise and experience in the fields of financial management, internal auditing, auditing, human resources and legislation impacting on local government; understanding of King III Corporate Governance; and willingness to serve the interests of the public in a responsible manner.

According to the advert, successful candidates will be appointed for three years and "remunerated at rates commensurate with their professional standing”.

Applications have to be submitted before 12 noon on Friday (May 25), after which the municipality will contact applicants for interviews.