Municipal Finance Management Act

The irregular expenditure due to the tender process must be investigated and reported to oversight bodies including Municipal Public Accounts Committee, Group Audit and Risk, and disclosed in the city's annual financial statements as such expenditure under Municipal Finance Management Act Section 32.

“It will be irregular expenditure. It must be investigated as such...It must be reported to the Municipal Public Accounts Committee. It must be recorded and referred to Group Audit and Risk for further investigations. And it must be disclosed in the city's annual financial statements as such irregular expenditure...It must be investigated in line with the processes of section 32 of the Municipal Finance Management Act.”

The Municipal Finance Management Act mandates that bids must be finalised within 90 days, but the City's Supply Chain Management policy allows extensions beyond this period.

“three months is a directive from the Municipal Finance Management Act ... bids must be finalised within 90 days ... we are stating ... the City's own Supply Chain Management policy, that we are allowed to make extensions beyond the 90-day period”

The contract for security services was originally awarded for a three-year period starting 1 March 2022, ending 28 February 2025, but it was still ongoing beyond that date due to extension processes.

“the contract is awarded for a period of three years as per the Municipal Finance Management Act and because it commenced the 1st of March 2022, the end date will then be 28 February 2025”