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'Small' mistake costs taxpayer R20 000

'Small' mistake costs taxpayer R20 000
 
2008-10-16

May Saal

A STUDENT from Port Elizabeth recently could not believe his luck, when an amount of R162 220 was accidentally deposited into his bank account by Drakenstein Municipality.

He happily spent R20 000 before the Municipality realised they had paid the amount into the wrong account.

Opposition parties in the Drakenstein Municipal Council expressed their shock and dismay when the portfolio holder of finance, JT Basson, announced that a “small mistake” had been made when the wrong account number was used for an electronic transfer intended for the developer Leivoor Developments in payment for bulk services provided.

The amount of R142 889 could be recovered and was paid to Leivoor Developments, who however insisted that the full payment be made for construction of a bulk sewer pipeline.

Clara Meyer (DA) wanted to know who would be held responsible for the “small mistake”. Deetlefs du Toit (DA) wanted to know if Council would act against the official responsible for the mistake.

Neither Meyer or du Toit could get answers to their questions. Council then approved a recommendation that the outstanding amount of R20 331 be paid to Leivoor Developments from other funds.

The matter was reported to the Paarl Police on 29 May to enable the bank to freeze the funds in the student’s account and to recover the funds.

Legal steps will now be taken to attempt to recover the missing R20 331

* Three years ago, the Municipality mistakenly transferred R294 000 into the account of an unknown person in Johannesburg, who had forged the Paarl Post letterhead on a fax. The funds could not be recovered as the account had been closed.


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