Chief Financial Officer

All extensions were done in line with the City's supply chain management processes and policies under the delegated authority of the Director Acquisition Management, and the Chief Financial Officer was not responsible for the approval of such extensions.

“All these extensions, Chair, I can confirm were done in line with the City's supply chain management processes and procedures and policies under the delegated authority of the Director Acquisition Management. ... I, in my capacity as the Chief Financial Officer, am not involved or responsible for the approval of such extensions. It is a delegated function.”

The Bid Specification Committee completed a process indicated by signed approval from the Chief Financial Officer and the City Manager approving the tender advertisement as fully compliant.

“I have recorded Annexure GM 9 and 10 as a form of communication wherein myself as the Chief Financial Officer and the City Manager approve and endorse the tender for advertisement as a result of these being fully compliant from the first date of the advert”

The city was sitting with irregular expenditure almost worth R18 billion, and neither the chief financial officer nor the city manager could afford for this to continue, hence the need for proper planning and assurance exercises.

“The city was sitting with irregular expenditure almost worth R18 billion . The situation now is the chief financial officer as well as the city manager could not afford for this to continue . Hence , the resolution is you must ensure that bids are advertised at least 9 to 12 months before they end because we need to ensure that the proactive forensic assurance exercise is undertaken .”

The Chief Financial Officer took responsibility to ensure verified and certified invoices were properly captured into the City's accounting records, including a dispute option when no corroborative evidence exists for work done.

“My involvement was necessary to ensure that all verified and certified invoices were duly captured in the City's accounting records or where appropriate formally dispute, Chair . So not only am I saying that invoices must be validated , certified but there is also an option to dispute”

Trade payables errors from other departments ultimately fall within the CFO's area of accountability and such errors had caused previous audit qualification findings which the CFO did not wish to see repeated.

“even though they originate from another department ultimately fell within my area of accountability . I do not wish to have a repeat of the prior year's audit findings of communications , of a qualification in respect to the payables component”

Deputy Chief Dhlamini explains that the CFO called him on March 4 while with Sergeant Nkosi, requesting to ensure outstanding invoices are paid as companies were threatening legal action.

“The Chief Financial Officer called me while he was with Sergeant Nkosi on the 4th of March, requesting me to say there are outstanding invoices that Mr Mpofu cannot get it right in ensuring that they are being paid and the companies are threatening to go to court.”

Director Nwandule oversees the process for payments related to the security contract extension, while CFO is not involved in the initial approval matrix but comes in later for payment release stages.

“...Director Nwandule does not define a role for the Chief Financial Officer in this approval of payments matrix... The CFO does not fit into this process... from there it goes to supply chain management. And from there to the CFO for payment...”

There is a formal supply chain management process at the City of Tshwane with strict compliance checks overseen by the Chief Financial Officer.

“There is a supply chain management process where people must comply with certain, and there is a checklist... So after they have done the checks and balances, obviously they feel that the service level agreement must be drawn up because these companies have met the requirements.”

There have been suspensions of the Chief Financial Officer and Deputy Commissioner Dhlamini relating to consequence management processes linked to supply chain issues.

“We know from your evidence but also from media reports that we can take note of that there has been suspensions of the CFO. We know that Dhlamini, Deputy Commissioner Dhlamini is also on suspension.”