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MASERU CITY COUNCIL

MASERU CITY COUNCIL. THE BASOTHO HAT. INTRODUCTION.

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MASERU CITY COUNCIL

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  1. MASERU CITY COUNCIL THE BASOTHO HAT

  2. INTRODUCTION • No country, however democratic, is free from corruption, this social ill touches government officials, politicians, business leaders & journalists alike. It destroys national economies, undermines social stability & erodes public trust (Combating crime – UNPAD 019187)

  3. BACKGROUND • Municipal council in Lesotho with 13 wards • Established in 1989 • Situated in Maseru • Maseru is the capital of Lesotho, situated on a plateau in the extreme west of the country. • There is an interesting colonial style in Maseru, of single-storey sandstone buildings; notable examples include the Cathedral and St John's Church(see pictures) • The surviving buildings date from the late 19th century onwards and were constructed of dressed sandstone with thatched or corrugated iron roofs • Maseru is Lesotho's only sizable city, with a population of approximately 227,880 (2006) • The city was established as a police camp and assigned as the capital after the country became a British protectorate in 1869.

  4. BACKGROUND Cont…….. Cathedral St John’s

  5. ORGANISATIONAL STRUCTURE COUNCIL Town Clerk Health Administration Planning Works Finance/City Treasurer Parks Revenue Expenditure Stores Purchasing

  6. Financial Management System • Cash resources & bank a/cs managed by CT • CT: also entrusted with custody of council’s assets • A consolidated FMS system in place; Sebata Municipal Financial Management System • All receipts deposited with the bank the next day • Reconciliations should be done on monthly basis

  7. CASH RISK MANAGEMENT ANALYSIS • AIM: Corruption not necessarily emanate from technical & sophisticated ways • Negligence corruption/fraud • Unfilled posts

  8. Maseru Case Study • Over a long time RA post remained vacant • Certain duties & responsibilities definitely compromised • Chief amongst: daily cashbook analysis, monthly bank reconciliation etc • Cashiers siphoned municipal cash into their pockets • Reported case of a cashier stealing council funds over a period of time • Picked almost after a year/two • In particular day she would be in short of R3000 & then after some time be in excess of the same amount • This could not be picked instantly

  9. Maseru Case Study Cot……. • Some cheques drawn to the council were also cashed • Evidence of collusion with the bank • Further evidence of fraud & corruption in stores section Staff taking council consumables for personal use • No proper record-keeping in stores

  10. Learning experience • Continuously perform bank reconciliations • Cashbook analysis should be duly performed • Officers should performed effectively their duties • Strong internal controls • Appointment of ethical personnel critical

  11. CONCLUSION • It is therefore critical that appointed officers perform their duties effectively and that continuous reporting mechanisms are put in place. Internal control systems have to be continuously monitored to ensure their effectiveness & possible improvement

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