Leave days scam headache in council

16 Jul, 2017 - 02:07 0 Views
Leave days scam headache in council

The Sunday News

cash

Vusumuzi Dube, Municipal Reporter
DAMNING details of an alleged leave days scam involving Bulawayo City Council (BCC) top officials’ have emerged with council sources revealing that the issue has created a lot of disharmony at the council.

The sources claim that some of the directors even risk losing their jobs as there is glaring evidence of abuse of office. The scam which was exposed in this publication a couple of months ago saw four of the city’s top executives — the chamber secretary, Mrs Sikhangele Zhou; engineering director, Engineer Simela Dube; finance director, Mr Kimpton Ndimande and human resources manager, Mr Makhosi Tshalebwa — getting various amounts deposited to their accounts without council resolution endorsing the move. The money had initially been deducted from their salaries as part of top of the range vehicle loans they had got from the local authority.

According to minutes of the directors’ hearings contained in a council confidential report, it emerged that among many other irregularities the town clerk, Mr Christopher Dube was not inducted when he assumed office. It also emerged that the financial director, Mr Ndimande had authorised the transfer of the funds without council resolution and without consulting the mayor.

“During council deliberations explanations were made by the chamber secretary (Mrs Zhou) that such an arrangement did not involve any cash movement. Briefings regarding council deliberations together with management assurance that they will not be any cash movements were also done by the chamber secretary.

“The financial director, Mr Ndimande was invited to come and explain the circumstances surrounding the cash payments as this amounted to a violation of a council resolution. The financial director confirmed that the cash payments emanated from the offsetting of car loans using leave days and in their belief as managers the resolution was to be applied in retrospect as salaries were reduced from the date the rationalisation took place,” reads part of the remarks by Mr Dube during the hearings.

The town clerk noted that as far as he was concerned despite the act of misconduct through the illegal encashment of the leave days, he had dealt with the issue the best way he could as they had eventually reversed the transaction and council had not been prejudiced of anything.

Questioned on whether he was inducted when he took over office Mr Dube allegedly said; “It is impossible to induct the chief executive officer. I had to personally induct myself as I asked all heads of departments to give me a briefing about their departments and to me that was sufficient as an induction.”

In her deliberations, Mrs Zhou allegedly confirmed the illegal encashment of the leave days, even going further to say that this was wrong and illegal.

“The encashment was wrong, I think in the memo that I gave to the auditor who did the investigation, I did indicate that in my view it may cause industrial disharmony with other staff members who have not been allowed to encash any leave days. So my suggestion in the memo that I gave to the auditor was that the money be returned and my days be credited to me again, because what I had requested for, even in the negotiations, was to offset the car loan balance against the money that council owes me for leave days and I indicated I was not interested in getting cash,” said the chamber secretary.

On his part, Mr Ndimande allegedly acknowledged that he had jumped the gun in paying the refunds but noted that there was initial miscommunication on when the refund was to be enacted.

“The accounting treatment of this refund I’m convinced it was correct as these accounts are still reflecting a credit balance. Apparently, it was not clear as I realised that we, including the town clerk, did not realise there was meant to be a refund then he noted that I did not inform him and yes, I did not, because it’s an obvious thing in an accounting situation. I did this professionally and according to qualifications and with a clear conscience, even in this committee, I would really request that let’s go back and refund these monies,” said Mr Ndimande.

Meanwhile, council sources close to the investigation have revealed that councillors in the audit committee were caught in a quandary as they risked firing the managers as it was becoming clear that there had been an act of misconduct.

The directors — with the approval of the town clerk, are alleged to have tried to cover their tracks by making an application for the same leave days to be used to write off their vehicle loan balances. According to a council confidential report from 1 February 2017, the four directors were owed a combined figure of $101 644 in leave days with Mrs Sikhangele Zhou’s days calculated at $21 147, Mr Ndimande; $26 055, Engineer Simela Dube; $24 362 and Mr Makhosi Tshalebwa; $30 080.

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