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MPAC flashes a red card on fraud and corruption Print E-mail
22 November 2012

The Commercial Crimes Unit of the South African Police Service has made its standpoint on fraud, corruption and wasteful expenditure in the city patently clear.
Speaking at the City of Joburg’s Municipal Public Accounts Committee’s stakeholder engagement meeting on Wednesday, Brigadier L Magson, the unit’s commander, said anyone in the City found committing fraud would have to face the full might of the law.
“Employees who commit fraud usually resign as soon as they start feeling the heat. This does not undo the crime. They will still have to go to court. Whether the person still works for the municipality or not has no impact on the criminal case. We will prosecute if they have committed fraud,” said Brigadier Magson.
Brigadier Magson’s strong warning was made as the City’s Municipal Public Accounts Committee (MPAC) announced at the meeting that it, too, was intensifying its efforts to stamp out fraud, corruption and wasteful expenditure in the City.
This comes just after the city’s launch of a massive anti-corruption drive to eliminate fraud and strengthen its corporate governance.
MPAC chairman Solomon Cowan said the session, held under the theme “MPAC= Impact on Accountability”, was to inform stakeholders of the role and work of the committee and to create a platform for all the city’s departments and entities to raise their challenges as far as their management of public finances was concerned.
“The MPAC has successfully taken interest in key forensic investigations that have been undertaken by the city. The committee also scrutinises quarterly reports on unauthorised, irregular or wasteful expenditure. At meetings where these reports are interrogated, all departments that have been mentioned are required to explain their expenditure. Corrective measures are implemented and departments strengthen their internal controls,” said Clr Cowan.
The MPAC plays a watchdog role to ensure accountability and make sure that public funds are spent correctly. It is one of five committees established in the city to ensure good corporate governance and accountability. They include the Group Risk Management Committee, Group Audit Committee, Assets and Liability Committee and Performance Audit Committee.
The MPAC’s role is also to consider and evaluate the content of the city’s annual report and make recommendations to the council, examine the municipality’s financial statements and audit reports as well as those of its entities; and promote transparency and accountability on the use of municipal resources to ensure the City derives adequate value for its spending.
Clr Rudolph Knight, one of the members of the MPAC, suggested a register of offending companies be created and publicly distributed for all to see.
“I propose that a register be created listing companies that have been found to be benefiting from fraudulent activity or those that have defrauded the city. These companies should be blacklisted from getting any further tenders,” he said.
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Last Updated on 23 November 2012