City rubbishes R2,6m year-end event expenditure report

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The city of Joburg has rubbished reports that funds have been spent on the year-end event and long service awards ceremony for qualifying employees.

This comes after the Democratic Alliance(DA) in Johannesburg called on Group Corporate and Shared Services MMC Loyiso Masuku and City Manager Floyd Brink to resign for their alleged role in the irregular diversion of funds to pay for an R2.6 million party for 500 employees.

According to Nicole Rahn, DA Shadow MMC for Group Corporate and Shared Services, money was diverted from hard-won loco allowances to a slush fund that would allow Masuku and Brink to loot the City coffers.

Rahn claims the loco allowances were a hard-won victory by the DA for the unions and the workers, especially for the front-line workers who had not had an increase for over a decade.

ANC Controlled Joburg fiddles as the City Collapses pic.twitter.com/KQfc3OMt3Y

— Nicole Rahn (@NicciRahn) November 30, 2023

“These are workers who are most vulnerable to the massive cost of living increases our country has experienced and require the allowances, to get to, and actually do their jobs.

“This blatant corruption demonstrates that the Doomsday Coalition will continue to put their interests far ahead of residents’. 

“It is disgusting that in the face of increased power and water outages, Masuku had her cronies in the department push through an irregular request to burn through over R2.6 million, of which over R1 400 000 will be spent on watches and branded puffer jackets.

“Over R76 000 went to venue hire, while R170 000 went to “management fees” which is obfuscated as the contract goes through the Metropolitan Trading Company – which does not disclose the name of the service providers.

“We are told the reason for this non-disclosure, is because the service providers are linked to Masuku herself,” Rahn stated.

Place on record

Responding to DA’s allegations Masuku said, “As the MMC when I became aware of the plans for such an event, I immediately requested that the plans be suspended and relook at how we can best appreciate and celebrate our employees, given the current financial and economic challenges that face our City and its residents.”

“We remain forever grateful to the many employees that have served the residents of Johannesburg with dedication for 40 years and more, however our current circumstances are limiting on how we recognize and express our appreciation.”

The MMC stated that had DA Councillors sought to verify the facts of the matter by approaching the office of the MMC, they would have been provided with factual information and made aware that no expenditure has been incurred and that the matter has been referred back to the administration for reconsideration.

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This, she said would eliminate the misinformation and peddling of falsehoods by faceless employees feeding into political squabbles.

She added that the City frowns upon the political overreach and interference in administrative processes.

“Based on engagements held with the City Manager and the relevant officials on Monday the said event and proposal must be significantly reconsidered and must align fully to the lawful processes as outlined by the City Manager in an internal submission signed by the City Manager.

“It is critical to re-emphasize that MMC’s are not privy nor party to the procurement processes of the City and that these are solely an administrative process undertaken without the participation and knowledge of the MMC,” Masuku concluded.