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Every year municipalities incur billions of rand in irregular expenditure, but since 2006 only 9 municipal officials have been convicted of the crime of financial misconduct.

This was revealed by the Minister of Justice, Ronald Lamola, in response to a Democratic Alliance (DA) parliamentary question.

Under Section 173 of the Municipal Finance Management Act, senior municipal officials and councillors can be criminally prosecuted for financial misconduct that falls short of outright fraud and corruption.

So, for example, a municipal manager that deliberately or through gross negligence allows tender regulations to be flouted on his or her watch can get be jailed or receive a suspended sentence.

Evidence of these cases is not in short supply - just consider the findings of the Auditor-General and the routine expenditure and tender reports municipalities have to send to councillors and National Treasury.

But since 2006 only 67 people have been prosecuted for financial misconduct in municipalities, and of the 67 only 9 have been convicted.

The convictions were also limited to four of South Africa’s 278 municipalities - Cacdu and Senqu in the Eastern Cape, Hoogland in the Northern Cape, and Oudshoorn in the Western Cape.

The DA has asked parliamentary questions about the progress of a number of high-profile criminal investigations in municipalities, and will write to the National Prosecuting Authority and the Hawks to monitor the progress of these investigations.

These cases include the PEU smart meter contract in the City of Tshwane, and the unlawful investment of municipal funds in VBS Mutual Bank.

The DA will also ask the Ministers of Cooperative Governance and Finance to establish a dedicated team to assist the NPA with evidence of section 173 offences.

Issued by The DA