The City of Johannesburg (CoJ) Council has referred 13 alleged acts of financial misconduct, with a combined value of about R4.07-billion, to its independent Disciplinary Board for preliminary investigations.

The matters relate to allegations of unauthorised, irregular and fruitless and wasteful expenditure arising from alleged non-compliance with the Municipal Finance Management Act (MFMA), supply chain management legislation and other applicable legislative and regulatory requirements across various municipal departments and functions.

The referral enables the independent Disciplinary Board to conduct preliminary investigations to determine whether the allegations are founded and whether further investigations, disciplinary proceedings, criminal proceedings or any other appropriate action should be recommended.

The decision forms part of the city's broader programme to strengthen financial governance, restore public confidence in municipal institutions and ensure public resources are managed responsibly, says CoJ Deputy Mayor and Finance MMC Loyiso Masuku.

As the city continues implementing reforms to improve its financial sustainability, institutional integrity and ethical governance, consequence management remains a cornerstone of good governance, she says.

Further, the city stresses that the accounting treatment of unauthorised, irregular, and fruitless and wasteful expenditure is separate from the conduct of officials.

While Council may, in appropriate circumstances and in accordance with the MFMA, regularise or write off expenditure where investigations have found that there was no financial loss or prejudice to the city, such decisions do not absolve any official from accountability.

However, where there is evidence of alleged financial misconduct, the conduct of the officials concerned remains subject to investigation and, where warranted, disciplinary or criminal proceedings, in accordance with the law.

“Johannesburg is committed to ensuring that accountability extends beyond financial reporting and that consequence management will be pursued wherever the facts and the law require it. The City remains committed to ensuring that allegations of financial misconduct are dealt with transparently, fairly and without fear or favour.

“This resolution is about strengthening public confidence in the city's governance systems and reinforcing the principle that every allegation of financial misconduct must be subjected to an independent, transparent and lawful process. The city will continue to protect public resources by ensuring accountability is applied consistently and without exception,” says Masuku.

The decision gives effect to the city's statutory obligation to investigate allegations of financial misconduct and reinforces its commitment to strengthening governance, accountability and consequence management.

Council's approval of the referral demonstrates its commitment to allowing independent governance mechanisms established in law to perform their statutory functions and to uphold the highest standards of ethical governance, she says.