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Questions over R18.5m paid to consulting firm

R17.17m of metro funds for waste diversion and beneficiation project ‘wasteful expenditure’

Twenty-six payments over 16 months, totalling R18.499-million, were channelled from the Nelson Mandela Bay municipality’s coffers into the account of Milongani Eco-Consulting for the waste diversion and beneficiation project.
Pressed for details, suspended environmental services director Joram Mkosana, who was in charge of the project, admitted the money had, in fact, been used to pay six interns and retired municipal staffer Riaan le Roux as a consultant.
The interns were paid about R8 000 a month and Le Roux received R50 000.
They were paid by Milongani over a 16-month period.
Auditors PricewaterhouseCooper (PwC), which probed the Milongani contract, calculated that the total cost of the interns and Le Roux amounted to about R1.3-million as opposed to the R18.499-million.
In its report, PwC states that the additional R17.17-million paid to Milongani should be regarded as wasteful expenditure.
“Mr Mkosana confirmed that he was responsible for arranging the continuance of the interns’ contracts through Milongani. However, he alleges that he was not aware of what the cost implications were,” PwC’s report states.
It also says the waste diversion and beneficiation project did not fall within Milongani’s scope of work, but payments were nonetheless authorised.
Only described on the invoice as “Professional Environmental Services for the Waste Diversion and Beneficiation Project”, the city started making payments from November 4 2015, with the first amount being R940 500.
The rest were:

R837 900 on January 17 2016;
R929 211 on March 11 2016;
R815 100 on April 1 2016;
R268 755 on April 18 2016;
R877 691 on April 23 2016;
R1.063-million on May 4 2016;
R238 602 on May 4 2016
R920 322 on May 11 2016;
R987 547 on May 13 2016;
R991 920 on May 17 2016;
R829 962 on June 22 2016;
R723 581 on July 19 2016;
R929 214 on July 19 2016;R999 440 on August 12 2016;
R379 280 on August 19 2016
R299 145 on August 20 2016;
R996 358 on August 23 2016;
R997 844 on August 23 2016; 
R350 550 on September 21 2016;
R359 869 on October 25 2016;
R783 698 on November 25 2016;
R383 017 on December 11 2016;
R623 380 on January 20 2017; 
R638 719 on February 16 2017; and
R352 921 on March 22 2017...

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