Internal audit review of Harry Giddey Park on council agenda

MOSSEL BAY NEWS - The minutes of Mossel Bay Municipality's disciplinary board meeting on 13 June, discussing the special internal audit review of Harry Giddey Park, were presented for discussion at the council meeting today, Friday 27 June.

The agenda for today's council meeting, which is on the municipality's website, dealt with the park in two separate items: first, the minutes, and second, a report for council to consider the recommendations from the disciplinary board.

The report stated that on 9 June, a special internal audit review was handed over to the municipality by the financial consulting and auditing firm, Moore Consulting Southern Cape. The review was then referred to the disciplinary board by Mossel Bay municipal manager Colin Puren.

The referral was made in terms of Regulation 5(1) of the Local Government: Municipal Finance Management Act (MFMA), No. 56 of 2003: Municipal Regulations on Financial Misconduct Procedures and Criminal Proceedings.

Internal investigation
Moore's investigation followed an internal investigation by the municipality into operational conduct at Harry Giddey Park, which resulted in the handing over of all animals to the Garden Route SPCA and the euthanisation of some of the animals, which suffered severe illnesses.

According to the report, Moore's internal audit found the following took place at the park: unauthorised animal sales, animal neglect and euthanisation and asset mismanagement.

It found that, due to the above findings, there was non-compliance at the park in terms of the MFMA, and the municipality's Supply Chain Management (SCM) Policy and Asset Management Policy.

Moore also found that the total financial impact included confirmed irregular sales of R22 251.90, fruitless and wasteful expenditure of R27 227.00 (euthanisation costs) and unconfirmed losses due to missing records, registers and invoices.

'Systematic failures'
The report further stated that Moore's review found that sales, expenditure and losses stemmed from systematic failures rather than instructions from an individual.

It said that while the investigation found no evidence of deliberate intent by officials to cause financial losses or mismanagement at the park, significant lapses in oversight and operational management and lapses in compliance with the Asset Management Policy 2025 and SCM Policy were identified.

The disciplinary board made some recommendations, which were voted on in the council meeting today.

One was that the review be accepted as a full investigation into the alleged financial misconduct by municipal officials related to Harry Giddey Park and that the euthanisation costs, paid to the Garden Route SPCA, be regarded as fruitless and wasteful expenditure.

The disciplinary board recommended that a legal opinion be obtained and that appropriate action be taken to recover the fruitless and wasteful expenditure and that the report be made available and that Puren determine the necessity for reporting any disciplinary actions in terms of the Financial Misconduct Regulations.

It also recommended that remedial measures be implemented in terms of standard operating procedures and policies to ensure that the risk of future financial misconduct is mitigated.

The Harry Giddey Park discussion took place at 11:00 today in the council meeting, which started at 09:00.

No objections
There were no objections to the report on the park and the recommendations were accepted.

Only the Freedom Front Plus' Elroy Baron commented on the report, stating he felt it was honest but he would like to see the matter sped up and completed soon.

Puren said in a statement released by the municipality that as soon as the recommendations had been accepted, the investigation provided the municipality "with an opportunity to correct the systemic issues that played a role in the situation unfolding as it did".

He noted: "As a municipality, we are committed to restoring public trust, strengthening internal processes and ensuring that the humane treatment of animals and sound financial management remain non-negotiable values in everything we do,” he said.

Read the municipality's full statement here: Comprehensive investigation into Harry Giddey Park matters concluded

Read the full report (page 1627) and the minutes (page 1610) in the council meeting agenda here: Agenda

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