Treasury recalls billions spent on IPTS

The National Treasury has made moves to recoup almost R3bn spent on the city’s beleaguered integrated public transport system (IPTS).

In a letter sent to acting city manager Nobuntu Mpongwana on Wednesday, the Treasury gave the municipality two weeks to prepare for this.

The Treasury’s deputy director-general of inter-government relations, Malijeng Ngqaleni, said the reason for the recall was that little had been done to implement the recommendations contained in the IPTS forensic investigation report.

The report, a draft copy of which was given to the municipality about three years ago, details large-scale corruption and how hundreds of millions of rand in public funds were squandered.

It was compiled by auditing firm Deloitte on behalf of the Treasury.

“The Treasury is left with no option except to give notice of its intention to withdraw and recall all transfers received by the municipality since the inception of the IPTS conditional grant allocation,” Ngqaleni wrote in the letter, which was also sent to the auditor-general and provincial Treasury head of department, Daluhlanga Majeke.

"Given that [the] IPTS has been at the centre of the issues raised by the auditor-general you are given 14 days from the date of this letter to take all precautionary measures in preparation of the process,” Ngqaleni said.

The municipality has spent close to R3bn on the project.

Ngqaleni had previously warned the municipality about the recall in an earlier letter in September.

Mpongwana declined to comment about the letter.