Oudtshoorn’s dire lot
Deon Lott, Oudtshoorn’s CFO designate
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Oudtshoorn. 20 December 2011. 07h00. Deon Lott resigned yesterday as Chief Financial Officer of Bitou.
Lott is due to become Oudtshoorn’s CFO on January 15.
He’ll work for less in Oudtshoorn, but he has no choice really: He was about to be suspended by Bitou and he knows his contract would in any event not be renewed when it expires next year.
It is elementary, my dear old son: Deon Lott should not manage the finances of a Kool-Aid stand in a schoolyard shut down for winter vacation. He can write up the records, to be sure, but he can’t manage the stall.
Here’s why:
1. Lott crippled Bitou’s cashflow
Under Lott’s guidance Bitou’s cashflow iced over. On October 26 Bitou had a cash shortfall of R21,799,278… by Lott’s own calculations.
In June 2011, Ratings Africa, a ratings agency specialising in ratings and similar opinions gauging soundness of governance, gave Bitou an Index Score of 36… out of 100 – “Weak”: The municipality’s role, clarity, infrustraucture, service delivery and financial profile are such that its sustainability in serving its residents and environment is weak.
Lott admitted under oath in the current disciplinary hearing of the Municipal Manager, Lonwabo Ngoqo, that he took full responsibility for Bitou’s financial position:
Bitou’s capital program was funded “too aggressively” compared to similar sized municipalities: R135m for the period 2006/7 to 2010/11.
Operating expenditure for the same period increased by 52.9% while revenue increased by only 47.6% Add to this “unforeseen situation” a rise in specific expenditure items such as electricity, personnel, repairs and maintenance, and finance charges, and disaster is ineluctable.
Bitou’s ANC Councils, since the mid nineties, used ratepayer money to becharm, bewitch and beguile voters: Some 30% was added to each provincial housing grant – a total of R9.4m from municipal funds. Given that Bitou levies tax only on properties valued in excess of R350,000, the “investment” can never be recouped.
OO’s translation: Lott can’t manage for nuts. This writer, for one, does not fall for “expert opinion” on Lott’s fit for purpose status!
It is as clear as a brilliant in a coal heap: The last bazaar you managed is cash constrained; you failed spectacularly to anticipate probable expenditure increases and revenue slumps; and you sunk reserves into schemes with no prospect of a return… you-can-not-manage! Period!
It is said, to be sure, that poor Lott is a decent lad, don’t you know; he is simply too easily influenced – he is soft; he aims to please.
Codswallop!
On or about November 9, Lott was informed of his intended suspension by the Acting Municipal Manager. Ol’ Softy’s response, and OO can, unfortunately, not quote the response, can best be described as being burdened with insubordination.
Too “soft” to say aikôna?
Not on your life!
2. Lott is suspected of fraud
On or about May 12 Lott confirmed in writing to the Manager, Standard Bank, George Business Centre, “that the unspent grants that are not covered by cash as at 30 June 2010 has been condoned by the Provincial Treasury.”
But one Mr F Sabbat, the Senior Manager: Local Government Group 1: Provincial Treasury: Provincial Government of the Western Cape, on or about September 28, informed the Bitou Municipal Manager in writing that “Provincial Treasury has no record that it had condoned unspent grants not covered by cash as at 30 June 2010 for Bitou Municipality. Also note that approval for bridging finance of about R6m was not approved by the Provincial Treasury. Please note that the Provincial Treasury has no mandate to condone the aforementioned.”
3. Lott took up an external loan contrary to Council resolution
Council resolved to take up an external loan of R16.58m, subject to favourable comment from the Western Cape Provincial Treasury.
According to the Provincial Treasury they did not submit comments in this matter. Yet the loan was taken up.
Provincial Treasury did admit that it “missed the deadline” for comment in both the loan and bridging matters. Treasury’s sloth does not condone Lott’s turpitudes, but it does indicate that the Western Cape is not so adeptly run as the DA would have us believe…
4. Lott utilised a conditional allocation for general expenditure
Lott admitted, under oath, in the Ngoqo disciplinary hearing, that he contravened the Division of Revenue Act when he used a housing allocation to pay short-term expenses. Click here for OO’s comprehensive coverage of this outrage.
5. Lott’s 2010/11 Financial Statements are late
As are the Oudtshoorn Financials. More of the same, thus… Lott is in breach of a statutory requirement.
Oudtshoorn’s half a billion budget, run by a grade sixer, is about to be managed my someone without the moral fibre to refuse illegitimate instructions!
The pantheons help us!
Yet, it is not the end of this particular trauma. It is, in fact, the beginning.
But there is a bit of a tail to this lot, weak as this particular paronomasia might be.
For one, Lott is bringing his budget manager, Mandy Cornett, to fill the billet left bare when Reggie Matala resigned in the face of suspension some time back.
Lott brings the manager who managed the Bitou budget that resulted in a R21,799,278 hole in October?
In the words of the prophet Hosea, mountains, cover us; hills, fall on us!
Then, one Diane de Jager, a DA Councillor, and her party’s representative on the appointment committee, called Bitou to enquire about Lott’s credentials.
What energy! What robust daring!
De Jager reported the candidate bankable and without ostensible handicap.
Thanks, DA! For burthening us yet again with Diane de Jager.
Helen Zille, Theuns Botha, Anton Bredell and James Selfe must think us fools.
Oudtshoorn’s financial position is grave… And Deon Lott is the answer?
O Hosea, where art thou!
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Yet another horse coming into the fold to eat & drink of the milk & honey of Odn because of yet another stupid decision made by our beloved politicians…. only for the cash ridden Odn folk to cough up when things do not workout as perceived….so people go out & pay your municipal bills,since the coffers needs to be filled for the sake of Golden handshakes coming this way…..where /when is this going to end
Well there is some solace in the fact that there is a foreseeable end to these spendthrift fools – eventually the ratepayers will be unable to pay , provincial and national treasury too will be exhausted by repeated calls for funding and the commercial banks will – if not already done so, black list OM.
As for our “paired” town in Holland who graciously donated Euro 10k following the fire disaster, they too will back off this bottomless pit of fraud and corruption when they see the light.
So begins the descent of our town infrastructure and the services to residents, doomed to be “managed” into the ground by the ANC, DA en die “hele bladdy spul” – Public servants my ar…se! – Ali Babba and the forty theives more like it, presided over by bredell who ‘s best shot is an “offer of his undying support” for april and his gang.
Nice going chaps – take a bonus and a pat on the back while you still can!
Al rede hoekom die soustrein nog hardloop in Oudtshoorn is omdat hier groot reserwes was !!!! Droog die belastings op, is daar nie meer reserwes nie en word die geldkraantjie toegedraai soos nou dit nou gebeur het in Limpopo provinsie, vat die “trogvreters” pad.
Oudtshoorn se ekonomiese ontwikkeling en voortuitgang staan stil. Geen inisiatiewe om ondernemings te trek, niks word gedoen om werk te skep . . . . maar sosiale programme (jeug ontwikkeling en “parties”, HIV ens) is prioriteit volgens ons munisipaliteit se 4 bladsy advertensie in die Oudtshoorn Courant.
Ek is bekommerd, want ek het baie in hierdie pragtige dorp bele.
Ek voorsien dat die tyd spoedig sal aanbreek waar die belastingbetalers gaan “revolt” teen hierdie onbevoegde, oneerlike trogvreters en dan gaan die poppe behoorlik beginne dans vir ODN. Of die publiek gaan ooglopend toelaat dat ODN gestroop en verwoes word, of hul gaan hul man staan en ELKE uitbuiter aan die kaak stel en alle skuldigesaan die gereg oorhandig. en “persona non grata” laat verklaar na vonnisoplegging.
Dis juis hier waar OO so n puik onmisbare rol speel. VOORWAARTS !!
IP, die revolt beter spoedig ‘n aanvang neem.
Dion’s promis “you wont get it cheaper” Dis lank trug, deesdae is dit Deon en ñ T in plaas van ñ P.