An executive at Pikitup allegedly lied about having authorisation to circumvent national procurement legislation regarding the supply-chain management processes, leading to the City of Johannesburg’s waste management entity losing about R1.3 billion.
allegedly lied about having authorisation to circumvent national procurement legislation regarding the supply-chain management processes, leading to the City of Johannesburg’s waste management entity losing about R1.3 billion.
said in his budget speech on Tuesday, when he painted a bleak picture of the city’s finances and that there was “an increase in the number of key municipal entities in overdraft positions”, including Pikitup. “Pikitup is a labour-intensive business and the bulk of its cost structure is based on staff costs. In determining a cost-reflective tariff structure, various options are being explored on waste management and landfill capacity,” Morero said.
“That being the case, the only reasonable conclusion to draw is that the CFO was not mandated [or] authorised by the board to take over the management of ad hoc services from Pikitup’s fleet management department. This was contrary to a clause in Pikitup’s standard operating procedure, which requires that a motivation form be filled out detailing the type of vehicle, the activity and specific working hours required for outsourced services.
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