The Nelson Mandela Bay council has appointed Luyanda Ndeya as its new acting chief financial officer.
Ndeya, a chartered accountant, has also worked for the Auditor-General of SA and forms part of the Section 154 intervention team that was deployed to the metro in December by the co-operative governance department.
This appointment comes in the wake of CFO Jackson Ngcelwane going on indefinite sick leave.
Ndeya was appointed at a special council meeting convened at 5pm on Thursday.
The appointment of an acting CFO was the only item on the agenda.
According to a report tabled before the council, Ngcelwane is on sick leave for an indefinite period.
Ndeya’s appointment is intended to ensure continuity and maintain oversight of the municipality’s financial affairs until Ngcelwane returns.
“Should council appoint an internal employee in an acting capacity, the incumbent shall be remunerated in accordance with the approved acting allowance applicable to acting senior managers of the Nelson Mandela Bay municipality and relevant legislative prescripts.
“Should council appoint a Section 154 secondee to act as chief financial officer, the incumbent shall be remunerated on the same salary scale and total remuneration package applicable to the current chief financial officer position, subject to the applicable legislative and contractual requirements.
“The financial implications arising from either appointment option can be accommodated within the approved budget provisions for the office of the chief financial officer,” the item read.
According to the item, the acting appointment would ensure:
- Continuity in financial administration and governance;
- Compliance with the Municipal Finance Management Act (MFMA) and other applicable legislation;
- Adequate institutional leadership during the preparation of annual financial statements;
- Effective engagement with the National Treasury, provincial treasury and auditor-general;
- Minimising operational and compliance risks associated with a prolonged or intermittent absence of the chief financial officer.
Leaked recordings from the meeting indicated that AIM councillor Khusta Jack was the only one against the appointment, while 64 councillors voted in favour.
Jack said he had an issue with the process undertaken by the municipality.
“We regard this process as very curious,” he said.
“To convert the Section 154 secondees into positions which they had never applied for nor had been vetted for is a serious anomaly.
“It is in line with the modus operandi that has been happening in this institution where flouting of rules and norms has become the order of the day.
“Do we know where the Section 154 secondees come from, where they were working and what follows them because there’s no CV and we’re following blindly?
“Surely the position of CFO cannot be occupied by anyone. I’d like to believe candidates have been vetted.”
GOOD councillor Lawrence Troon said the city should appoint the most suitably qualified person, adding that Ndeya’s accounting background made him a logical choice.
ANC councillor Xolani Notshe questioned whether a Section 154 appointee was eligible to serve in the role.
Acting city manager Lonwabo Ngoqo confirmed the team was eligible but said he needed to inform the co-operative governance department that council had considered their appointments so arrangements could be made for the salary issue.
Budget and treasury political head Khanya Ngqisha said an additional recommendation was that should Ngcelwane return before the three months end, he would resume his position.
“I want to avoid a situation if the CFO comes back in two months instead of three months.”
DA councillor Brandon Pegram said the CFO position was a critical role and caution was needed.
“Our municipality cannot afford uncertainty when it comes to our finances.
“We’re in a difficult financial environment. Service delivery pressures are already high.
“[Ndeya] served in the AGSA office for about six years, so this gives me great hope that he will be exceptionally careful with what he does going forward,” Pegram said.
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