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29 October 2021 Media Release: Garden Route District Municipality improves its procurement practices to avoid Deviations

Media Release: Garden Route District Municipality improves its procurement practices to avoid Deviations

For Immediate Release
28 October 2021

Over the last few years, Garden Route District Municipality (GRDM) has improved significantly with the utilisation of deviations in its procurement processes.

According to GRDM Chief Financial Officer, Mr Jan-Willem de Jager, GRDM has invested significant time and effort in an attempt to reduce the amount of goods/services that had to be procured via deviations to the bare minimum. “Since 2017/2018 financial year, GRDM improved with a drop in deviations from ± R23 million to ±R2 million,” De Jager said.

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What is a Deviation?

A deviation is a procurement process that falls within the ambit of Regulation 36 of the Municipal Supply Chain Management Regulations (Municipal Finance Management Act). Tebello Mpuru, Manager responsible for Stores, Data & Supply Chain Management at GRDM, explains: “It allows the Municipal Manager to dispense with the prescribed procurement processes established by the organisation’s Supply Management Policy of Council and to procure any required goods and services through any convenient process, provided that the reason for having to deviate falls within the allowed categories as per the legislation. This may include direct negotiations,” he said.

The SCM Regulations stipulates the following five (5) specific circumstances that legitimise the use of deviations:

  • In an emergency situation
  • If such goods or services are produced or available from a single provider only
  • For the acquisition of special works of art or historical objects where specifications are difficult to compile
  • Acquisitions of animals for zoos
  • In any other exceptional case where it is impractical or impossible to follow the official procurement process; and
  • To ratify any minor breaches of the procurement processes by an official or committee acting in terms of delegated powers or duties which are purely of technical nature.

The use of deviations for unjustifiable reasons leads to irregular expenditure. According to Mpuru, irregular expenditure due to the abuse of deviations, is frowned upon by stakeholders at all levels of the organisation, as the practice negatively affects the performance of the organisational. For that reason, this practice rarely ever escapes the public eye, as it creates a perception of intentional financial misconduct and the contravention of the relevant Municipal Finance Management Act (in a municipal context). On the question, why it is important not to follow the deviations route, Mpuru highlighted: “Through proper procurement planning by an organisation to put measures in place to have appropriate goods and service contracts for Council, a deviation would be an exceptional occurrence”. Each deviation would then allow the Council to update their procurement plan and put measures in place to avoid similar situations in the future, if possible. An event would rarely be entirely new; therefore, through proper planning, procurement contracts can be put in place ahead of time and ensure that minimal deviations can occur.

In further elaborating on the practice of deviating, De Jager explains that with emergencies that could still arise, considering that GRDM delivers disaster management and fire fighting services, would mean that some deviations would still be justifiably required. However “the organisation has shown great progress to identify every possible eventually for which we would be required to procure goods/services and has ensured that legislated procurement processes were followed to get adequate contracts in place for such goods/services”.  In closing, he highlighted: “The success of this drive to reduce deviations is evident from how the total annual deviations has decreased over the last number of years”.

What to look out for when procuring goods and services?

Procurement is about Council openly going into the market to procure goods and services and allow the market to be treated fairly in responding to the needs of the state. Government’s intention is to solicit goods and services in the market without prejudice and allow the market to respond with the best possible offer to Government. A procurement process is designed to be transparent, fair, equitable, competitive and cost-effective to ensure the state utilises public resources in a manner that translates into value for money.

Mpuru advises that when goods or services are procured, one should do a market analysis and ensure that you are fairly familiarised with the approximate market rate for those goods and services. One cannot claim ignorance by purchasing goods and services that are priced at an unreasonable cost – “Government has limited funding, as such every cent that is spent should be value for money. Failure to do so could be deemed as financial negligence and could be deemed as a crime against the state and the people of this country”. Every cent spent belongs to the public and should therefore be treated with utmost care to avoid irregular or wasteful expenditure – limited resources should translate in eliminating inefficiencies and obtaining the best possible value out of the market.

How to prevent Deviations?

Procurement is merely a translation of the execution of planned objectives. Therefore every cent in the organisation should be spent according to the plans of Council. Planning, therefore, requires a lot more thought and attention to detail to ensure that those entrusted with public funds have a clear plan on what programs and projects of Council they plan to execute in the most efficient manner possible.

“Ultimately we are public servants, and we are accountable to the public as a primary stakeholder to serve our communities. Failure to ensure efficient use of public resources ultimately means that we have failed society to derive the highest value possible with Government’s limited resources. Every action we do to add, speaks to the sustainability of public governance and the stability and growth of society” Mpuru emphasised. “Therefore being prudent means if we plan accordingly it can only be of benefit to society at large of which we are also beneficiaries of,” he concluded.

ENDS

2021 08 26 Notice: Roll-Over Adjustment Budget for the period 2021/2022-2023/2024

Notice 74/2021

ROLL-OVER ADJUSTMENT BUDGET 2021/2022

Notice is hereby given that the Garden Route District Municipal Council’s Roll-Over Adjustment Budget for the period 2021/2022-2023/2024, was compiled in accordance with the Local Government: Municipal Finance Management Act 2003 (Act 56 of 2003).

This document was approved by the Garden Route District Municipality at a District Council meeting held on Tuesday, 24 August 2021.

This document will be available for public inspection and comments on the GRDM municipal website www.gardenroute.gov.za from 26 August 2021.

Members of the public is invited to submit written comments or representations to the municipality in respect of this document. All comments and inputs must be directed to “The Municipal Manager, Garden Route District Municipality, 54 York Street, George 6530”.

Click to download/view the official notice.

Please contact the Budget Manager (Ms Louise Hoek) at 044 803 1300 with any enquiries.

M G Stratu
Municipal Manager
Garden Route District Municipality

30 March 2021 Media Statement: One finding away from a Clean Audit: Garden Route DM receives its 3rd consecutive Unqualified Audit Outcome

Media Statement: One finding away from a Clean Audit: Garden Route DM receives its third consecutive Unqualified Audit Outcome

30 March 2021
For Immediate Release

Garden Route District Municipality (GRDM), one (1) of the five (5) district municipalities in the Western Cape, obtained its third consecutive unqualified audit outcome. For the year under review (2019/2020), the Auditor-General of South Africa’s (AGSA) reported one (1) finding; an improvement for the GRDM compared to 2018/19.

Alderman Memory Booysen, Executive Mayor for GRDM welcomes the Audit outcome, and he said, “We invested a lot of time and energy in assuring that we comply with all relevant legislative prescripts in Local Government environment and that we apply the relevant standards when preparing our financial statements.

According to GRDM Municipal Manager, Monde Stratu: “There were no financial material misstatements, no performance management misstatements and no material inconsistencies reported in our Annual Report”. The only material finding identified by the AGSA relates to the composition of our Bid Adjudication Committee, which was the same finding raised in the previous audit and was corrected in November 2019, however it was raised even though it was corrected. The AGSA regarded this as a transversal matter and dealt with it as such. It was subsequently revealed by the AGSA that the GRDM is in a sound financial position.

The final step for the GRDM was to for its Municipal Public Accounts Committee (MPAC), to compile an Oversight Report in accordance with Section 129 of the Local Government Municipal Finance Management Act, 2005. This report was considered by the GRDM Council during a Special Council meeting today, 30 March 2021.

According to the GRDM Oversight Report and re-highlighted by Cllr Clodia Lichaba (MPAC Chairperson), the GRDM administration was congratulated “for maintaining an unqualified audit outcome, given the pandemic challenges. Many audit-related engagements took place during a critical time when the the institution only had skeleton staff to assist”. MPAC’s Chairperson furthermore noted that there was a vast improvement on the content of the Audit Report because of a drastic reduction in material matters.

During a GRDM Council meeting (top, left), two chairpersons logged in to discuss the Annual Report and Oversight Reports. Logged in via Zoom (right), Dr Adele Potgieter (Chairperson: Audit and Performance Audit Committee) and at the bottom, Cllr Clodia Lichaba (Chairperson: Municipal Public Accounts Committee).

The finding – Composition of the Bid Adjudication Committee

In the 2018/19 Auditors were of the view that the competitive bids were adjudicated by a bid adjudication committee that was not composed in accordance with Supply Chain Management Regulations 29(2), which provide guidance for the composition of Bid Adjudication Committees.

This regulation reads:

–  a bid adjudication committee must consist of at least four senior managers of the municipality or municipal entity which must include

(i) the chief financial officer or, if the chief financial officer is not available, another manager in the budget and treasury office reporting directly to the chief financial officer and designated by the chief financial officer;

(ii) at least one senior supply chain management practitioner who is an official of the municipality or municipal entity;

(iii) and a technical expert in the relevant field who is an official of the municipality or municipal entity, if the municipality or municipal entity has such an expert.

After the above finding was raised by the AGSA in 2018/19, management swiftly and formally appointed the Manger: Supply Chain Management, as a member of the BAC. This appointment was done during that audit in November 2019.  At the time of the AGSA’s final report, this was already corrected.

However, the same finding that was raised in 2018/19 and corrected in November 2019, has again been raised as a repeat finding, in the current year’s audit (2019/20 Audit). Management disputed this finding and it was referred to the AGSA Technical Unit. The reason for this dispute was based on the following premises:

  • That the matter was raised in previous audit as material finding affecting the audit opinion. The matter was immediately corrected even before the conclusion of 2018/19 audit.
  • Management is of the view that it serves no purpose to again raise the material finding that has already been rectified. The root cause has been identified in the previous year and the defect cured. It is an exercise in futility and actually negates the principles of fairness.
  • There is no remedial action proposed by the Office of the Auditor General and therefore this results in a situation where the municipality was found guilty the previous year, was punished, served the sentence and is again subjected to the same trial even after having corrected what was wrong. This is double jeopardy, a situation frowned upon by our legal system especially in the light of the fact that the decisions of the Auditor are administrative in nature and must adhere to the principles of fairness.

The AGSA acknowledged that this finding is raised as matter of consistency and is a result of their methodology and therefore cannot be ignored. They also acknowledge that they did not recommend any action to address this finding, as the Municipality has already addressed the matter.

However, they remain of the view that the non-compliance remained “material”, when considering the period (July 2019 to October 2019) before the GRDM Supply Chain Manager was appointed as a BAC member.

The GRDM management further confirms that this finding will not re-occur in 2020/21 audit, as this matter is now settled.

GRDM remains on a path that delivers and works in the best interests of all who live in the Garden Route.

Did you know?

Clean Audit Outcomes: The financial statements are free from material misstatements and there are no findings on reporting on performance objectives or non-compliance with legislation.

Unqualified Audit Opinions: The financial statements contain no material misstatements. Findings may have been made on either reporting on predetermined objectives or non-compliance with legislation, or both these aspects.

Qualified Audit Opinions: The financial statements contain material misstatements in specific amounts, or there is insufficient evidence for us to conclude that specific amounts included in the financial statements are not materially misstated.

Disclaimer of Opinion: On some occasions, an AQ is unable to complete an accurate audit report. This may occur for a variety of reasons, such as an absence of appropriate financial records. When this happens, the auditor issues a disclaimer of opinion, stating that an opinion of the firm’s financial status could not be determined.

ENDS

27 November 2020 Public Notice: Second Adjustment Budget, 2020/2021 – Open for Comment and Public Inspection

Public Notice: Second Adjustment Budget, 2020/2021 – Open for Comment and Public Inspection

Notice 87/2020

Notice is hereby given that the Garden Route District Municipal Council’s Second Adjustment Budget for the period 2020/2021-2022/2023, was compiled in accordance with the Local Government: Municipal Finance Management Act 2003 (Act 56 of 2003).

This document was approved by the Garden Route District Municipality at a District Council meeting held on Thursday, 26 November 2020 and is available for public inspection and comments on the GRDM municipal website www.gardenroute.gov.za from 26 November 2020.

Members of the public is invited to submit written comments or representations to the municipality in respect of this document. Click here to view the official notice.

All comments and inputs must be directed to:

The Municipal Manager
Garden Route District Municipality
54 York Street
George
6530

Please contact the Budget Manager (Ms Louise Hoek) at 044 803 1300 with any enquiries.

M G Stratu
Municipal Manager
Garden Route District Municipality

GRDM hosts its 2nd IDP, Budget and Performance Management Representative Forum

The 2nd Integrated Development Planning (IDP), Budget and Performance Management Representative Forum, hosted by Garden Route District Municipality (GRDM), took place on Thursday, 14 March 2019 at the Civic Centre in George. This event was a second of its kind to be hosted by the District. The event housed approximately 150 delegates, varying from Councillors and municipal officials, to representatives from sector departments in the Garden Route district.

Apart from representatives from B-municipalities, various Government organisations were also given the stage to talk about their initiatives and plans for the future. This was the part on the programme which municipal representatives waited for in anticipation.

Soon after Mr Mzukisi Cekiso, Manager of Integrated Development Planning at GRDM, recapped the resolutions of the 1st Forum that took in Mossel Bay last year 2018, Executive Mayor of GRDM, presented an overview of the Garden Route district. Mayor Booysen emphasised that the Garden Route is the second biggest district in the Western Cape and is still growing in terms of population statistics.

Executive Mayor of Garden Route District Municipality, Cllr Memory Booysen during his keynote address at the 2nd Integrated Development Planning/Budget and Performance Management Representative Forum that was held at the George Civic Centre on 14 March 2019.

When highlighting his plans for the Garden Route, Mayor Booysen pointed out one of the initiatives of the GRDM and said: “Big events, such as the Garden Route Investment Conference, hosted by the municipality last year have resulted in negotiations to take place with an investor for a R1 billion contract. This contract will be of benefit to all municipal areas in the Garden Route,” he added. Although Mayor Booysen brought good news to the various representatives in relation to the District’s plans, such as to appoint a development agency for the district etc., he also changed his tone and raised his concerns about various challenges which the entire district is faced which. One of these challenges is the drop-out rate of high school learners. He subsequently pleaded with municipalities to plan for programmes to be put in place to reverse this trend.

Municipal Manager of GRDM, Mr Monde Stratu, encouraged all municipalities to fully utilise IDP platforms to raise issues of concern and that everybody must work hard to improve communication among stakeholders to ensue better cooperation.

GRDM Municipal Manager, Mr Monde Stratu, during his address said: “We have received correspondence from the Western Cape Government that the IDP Indaba is coming back in April 2019”. Stratu encouraged municipalities to make use these opportunities to engage on matters of public interest”. When referring to public participation, he furthermore explained that the District will be going to the next phase of the IDP and Budget process. “We need to work very hard on our communication as stakeholders of Government, as we are not all on the same page and should work hard in achieving better coordinated,” Stratu said.

Speaker of Garden Route District Municipality, Cllr Eleanore Bouw-Spies, and Programme Director of the event (left), together with Speaker of George Municipality, Mr Gerrit Pretorius (right), after he delivered his speech on behalf of George Municipality.

Municipalities on the other hand raised their municipal concerns of which many spoke about the drought issue in their area, over population in relations to adequate services such as a need for health facilities etc, unemployment, housing, provision of electricity – to name a few.  Although many municipalities appeared to be despondent when sharing their municipal budget constraints or shortcomings, many of them also saw the light at the end of the tunnel when sector departments announced their future plans for the Garden Route. One such good announcement, was that of the Department of Health in the Garden Route/Klein Karoo District, when Mr Manie Abrahams highlighted that in the 2019/2020 financial year, R462 million will be spent on hospitals and R498 million for primary health care services. Abrahams said:  “One of the reasons for the spending, especially at primary health care facilities and hospitals, is to decrease the waiting time of visitors”. He added:  “The Department’s infrastructure upgrading this year for the district amounts to R10 to R30 million for the Mossel Bay hospital which is in progress, as well as a new hospital for Bitou of which the date still needs to be confirmed”.

The Bitou Municipality was fully represented at the event, with (fltr) Executive Mayor of Bitou, Cllr Peter Lobese, Municipal Manager of Bitou Municipality, Mr Lonwabo Ngoqo, and Mr Thembinkosi Henge, IDP Manager.

In concluding the activities of the day, Portfolio Chairperson for Finance at GRDM, Cllr Jerome Lambaatjeen thanked all municipal officials and representatives from sector departments who attended the event.

The programme was facilitated by Cllr Eleanore Bouw-Spies, Speaker of Garden Route District Municipality.

An Institutional Strategic Planning Session is underway (12 and 13 March 2019)

The Garden Route District Municipality’s (GRDM’s) second Institutional Strategic Planning Session takes place on the 12th and 13th of March 2019. The session is aimed at reflecting on how GRDM performed over the 2018/19 financial year and if resolutions have been successfully implemented.

By continually striving to fulfill its vision, reaching intended objectives and implementing strategies, the municipality will also ensure that its alignment with national and provincial government goals are in place. The municipality is serious about mitigating its threats and
transforming it into opportunities, as well as growing its unique strengths and taking advantage of opportunities presented.

Public Notice: Tabling of 2017/18 Annual Report of Garden Route DM

Public Notice: Tabling of 2017/18 Annual Report of Garden Route DM

Notice is hereby given that the Annual Report for the 2017/18 financial year will be tabled at the Garden Route District Municipality Council meeting on 13 December 2018 in terms of Section 127(2) of the Local Government: Municipal Finance Management Act (MFMA), 52 of 2003. Also, the Annual Report is tabled as informed by circular 63 of the MFMA.