Spie Batignolles next in line for Lesotho prosecution
Wiseman Khuzwayo reports in the Star that the prosecution of multinational companies on charges of corruption relating to the Lesotho Highlands Water Project, is quietly continuing. The trial of Spie Batignoles, a subsidiary of France's biggest engineering and construction firm, the Schneider group, was due to have started on October 15. The company was convicted of bribing the former executive of the water project, Masupha Sole, who was sentenced to 18 years in jail for receiving more than R7,5 million from American, British, Canadian, French and German contractors. In August, the conviction of Canadian - based contracting company Acres International for bribery was confirmed by the Lesotho appeal court and it was fined R15 million. However, the Canadian government's export financing agency has been accused by some NGO's for its failure to sanction Acres International, which has been convicted of illegal acts abroad, including Lesotho. The prosecutions in Lesotho were given international prominence when Guido Penzhorn, state prosecutor in this matter, was recently invited to the European Parliament in Brussels and the Organization for Economic Co - operation and Development in Paris to brief the two organisation on the investigations and trials.
Full Article in Business Day: www.bday.co.za
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Online Corruption Information Centre
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The Southern African Online Corruption Information Centre is the first web-based library with a focus on corruption in Southern Africa. It aims to provide policy-makers, researchers, activists, academics, the media as well as public and private sector officials with access to material on corruption as well as strategies to combat graft and corruption. The centre, which is a free to use service, provides information with a specific Southern African focus:
Visit: www.issafrica.org...
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All back issues of Umqol'Uphandle will in future be posted on the ISS website.
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The converse of corruption is...?
A culture of sound ethical practice, goes the argument, is the antithesis of corrupt practice. An inhibitor rather than a reactive attempt to punish - the implementation of a code of ethics has become a priority in government, civil society and business. However as the Ogoni people in Nigeria have witnessed, large institutions such as oil companies often dangle alluring codes of ethics before shareholders and the public but when it comes to doing business, ethical practice is unlikely to be uppermost in the mind of many.
This, however, does not mean that we should become cynical of attempts to improve the ethics of organisations - to do so would be to give in to the notion that the only way to deal with graft is to grow the queues of awaiting trial prisoner's. A case in point is Parliaments ethics code and ethics committee (See profile). The effectiveness of the latter has been tested this month as the private interests of Deputy President Jacob Zuma were probed by the committee (See National Administration). Although the committee has come under fire from the opposition it should be recognised that even if it were to find the Deputy President guilty of a contravention of the code it is not a court of law and is severely constrained by the fact that it has little power to penalise members guilty of contravening the code of ethics. Although there is no convincing evidence to suggest that the cash the Deputy President received was a 'gift' as opposed to a 'loan', it is surprising to read that one of the creditors decided to write off a loan that Jacob Zuma had not paid back against her 'social responsibility account'. Given the fact that a third of our nation lives in poverty it is surprising that a member of the executive with a pre - tax salary close to a R1 million a year would be a candidate for a 'social responsibility account'.
As recent research on the subject shows, (See Research) we have an excellent code by international standards but it has some shortcomings that parliament would do well to revisit after the elections. These include post - employment provisions for MPs and other senior government officials that remain unregulated. As the Komatiland forest deal shows (See Industries) a former director general of public works, implicated in impropriety in the awarding of a tender, can 'return' as a consultant to a private sector company competing for the same tender.
At times we are reminded of the arbitrary nature of borders. As the National Assembly, prepares to debate the Prevention of Corrupt Activities Act on 27 November, it will be presented with the eighth version of what will, if implemented, become a powerful legal tool with which to combat graft. It is perhaps appropriate to point out that last week, Dr. John Makumbe, the chairman of Transparency International Zimbabwe, was arrested and detained, together with scores of trade union activists, for his outspoken position on the link between a failing state and rampant corruption that have become so visible in Zimbabwe. Those who claim to be committed to combating corruption will hopefully agree that a softly-softly approach to the regime in Harare, like the idea of an ethics committee with little power of sanction, requires urgent reconsideration.
PUBLIC SERVICE
NATIONAL ADMINISTRATION
Ethics Committee clears Zuma on Code of Conduct
Angela Quintal reports in ThisDay that Deputy President Jacob Zuma's peers have cleared him of contravening Parliament's code of conduct. This move came a month after Lawrence Mushwana, the public protector, exonerated him of breaching the executive ethics code. But questions remain whether the Deputy President has left himself vulnerable to undue influence or conflict of interest by accepting hefty loans from friendly business people. Parliament's multiparty ethics committee found that the R1,6 million Zuma has received since June 1999 from four associates ' including his financial adviser Schabir Shaik - were interest bearing loans and not gifts, under the code, MPs are not required to disclose liabilities such as loans. Luwellyn Landers an ANC MP and the committee's chairperson, told reporters that the issue of a conflict of interest was raised, but that it did not fall within his committee's jurisdiction. Those issues were the public protector's domain, he said Landers also criticised the national prosecuting authority (NPA), saying it had not been "very helpful" in clearing up contradictory information. Landers said no evidence before the committee contradicted the authenticity of Zuma's loan agreements. However, the minority parties wanted Zuma, Shaik and the deputy president's other associates, businesswoman Nora Fakude Nkuna, broker Jurgen Kogl and Durban businessman Vivian Reddy to be hauled before the committee to explain the discrepancies. Legal opinion by senior counsel was that the committee did in fact have the power to summons the four, even though the powers and privileges bill of parliament had yet to be enacted. The NPA said Fakude - Nkuna had told it that she had discussed the matter personally with Zuma and had viewed the money as a loan. When he did not repay it, she wrote it off against her "social responsibility" account. It has since been trying to get her to make a sworn statement under oath. Zuma's loan agreement with Reddy indicated interest at '15,25 % per year", with Kogl "call rate plus 1%" and Shaik "prime plus 2%".
Full Article in ThisDay: 20/11/2003 ...
Sub Judice myth in Zuma affair.
The Director of the Public Service Accountability Monitor (PSAM) Colm Allan argues in Business Day that the report published in Parliament on October 17 on the public protector's investigation into whether Deputy President Jacob Zuma had declared his financial interests in terms of the executive ethics code raised more questions than it answered. Allan points out that the critical issues the public protector failed to address include:
- Did the deputy president obtain payments from individuals and companies involved in SA's 1999 arms procurement deal, including Schabir Shaik and Nkobi Holdings?
- If so, were these payments declared in the register of interests for cabinet members
- to which only the president, the secretary of the cabinet and the public protector have access?
Is Zuma fit to remain in public office? According to Allan, these issues are separate from the question of whether the deputy president is guilty of the criminal offence of corruption. If Zuma did not declare alleged payments obtained from Shaik - Nkobi Holdings, then the matter becomes quite simple: if he did not receive such payments he cannot be guilty of breaching the cabinet's ethics code. But if he did receive payments from Shaik - Nkobi Holdings ' which a cursory inspection of his bank accounts should show ' he is guilty of a de facto conflict of interest and of misleading the president and the cabinet. And if he declared these alleged payments from Shaik - Nkobi Holdings in the cabinet register, why was he not asked to recuse himself from all cabinet meetings at which the arms deal, or its investigation, was discussed as required by the executive ethics code? The code requires both that the cabinet members disclose their financial interests and recuse themselves from involvement in any discussion or decision involving their private interests. Yet it is common knowledge that Zuma was involved in discussions around the exclusion of the special investigating unit from the joint investigating team in the arms deal.
For the full Business Day article see: allafrica.com...
Home Affairs plans to get serious about graft
Charles Molele of ThisDay reports, that Barry Gilder, the new director - general of home affairs, has announced the launch of a turnaround strategy for his department. Gilder noted that, ''...there is no doubt that the department is a prime target of organised crime syndicates and other criminals, because we provide them with an essential service, the enabling documentation that allows them to establish themselves and to carry out their criminal acts inside the country and our border'. Gilder said the department planned an integrated counter - corruption directorate with increased capacity to investigate and fight corrupt in the department. Home affairs would hold workshops within the department with a focus on corruption pertaining to, 'illegal' foreigners, fraudulent marriages and immigration control which would then be tackled with the help of other agencies, including the NIA. Molele, reports that most people who registered as refugees at home affairs came from Zimbabwe, thereafter Mozambicans, Malawians, Nigerians and Asians. Many of them were deported because they did not qualify as political refugees, and as a result about 150 000 'illegal' foreigners, were deported every year.
For the full article please see: ThisDay (06/11/2003) ...
Child rights office implicated in over - Invoicing: Presidency official fired for billing scam.
Angela Quintal reports in ThisDay that an employee in the presidency has been dismissed for the alleged misappropriation of thousands of Rands. The employee's scheme appears to be a version of the travel scam that hit parliament earlier this year. Problems in the office of the rights of the child were hinted at in the presidency's yearly report for the year ending in March, which was tabled in parliament this month. The report said the matter had been referred to the national directorate for public prosecutions for further investigation. The Auditor General (Shauket Fakie), reportedly told ThisDay that the audit on the presidency's financial statements, had been completed and that it had found that the employee had misappropriated funds. Staff member allegedly used travel agents to over - invoice the presidency. The over-invoicing was found to have occurred in July and August 2001 and had amounted to thousands of Rands. Telkom gave R7,5 - million over two years to the presidency to be used by the office of the child for its programmes. David Hlabane, the presidential spokesperson, confirmed that the employee had been dismissed. He declined to elaborate or to give details of the amount involved, saying the matter was sub judice.
For more on this story, see: ThisDay (4/11/2003) ...
Stats SA can't count its beans.
Statistics South Africa, responsible for producing key data on inflation, the gross domestic product and the population, is struggling to keep track of its finances. Its own audit committee says the financial - management crisis could ''jeopardise (its) ability to deliver on its mandate''. The organisation came under fire earlier this year for errors in the calculation of inflation numbers. It is now likely to receive a stinging rebuke from parliament for its financial mismanagement and poor planning. The Standing Committee on Public Accounts (SCOPA) is expected to adopt a resolution soon that will question Stats SA's ability to coordinate the next national census, due in 2006. Of pivotal concern to the committee is ''whether Stats SA has got the ability to carry out things like the census?'' ''There is still no risk - management strategy and no system of risk management in place'' said a member of the standing committee. ''This constitutes not only a breach of treasury regulation 3.2.1... but also a breach of the Public Finance Management Act. In his report to Scopa the Auditor - General also flagged inappropriate tender procedures, unapproved increases in personnel expenditure, the lack of an approved organisational structure and ''uncertainties surrounding 20% of its allocated budget''. Nevertheless the Managing Director of Stats SA maintains that it provides information of a quality ''to be reckoned with'' in global terms. Government officials can be held personally liable for unauthorised, wasteful and irregular expenditure in terms of the Public Finance Management Act.
For more on this story see: ThisDay (17/11/2003) ...
PROVINCIAL ADMINISTRATION
Activist fears for his life after voicing suspicions about Aids Trust Fund.
Christine Terreblanche reports in the Sunday Independent that an Aids activist in North West is on the run after receiving death threats in the wake of questioning the whereabouts of tens of thousands of Rands allegedly poured into a provincial Aids trust. Pastor Neo Moepi, a representative of People Living with HIV/Aids (Napwa) in the Northwest, went public with his suspicions about the unregistered Tsholofelo Trust four months ago after trying to get information for three years. 'They never ever responded to questions about where the money went', he said of the trust members. 'After all the efforts to meet with them, especially the premier (Popo Molefe), I asked the questions at a public meeting'. Due to threats on his life, Moepi left his wife and children in Mafikeng and now moves from town to town to escape the threats, which he believes emanate from the provincial political establishment. The 'Tsholofelo (hope in Setswana) Trust' was set up in 1999 by Popo Molefe to facilitate fundraising for HIV/Aids support programmes. However the Premier's office denies that Molefe is involved in the day to day running of the Trust. An investigation by Independent Newspapers disclosed that the company has never been registered as either a closed corporation or as a Section 21 charity fund. Furthermore, despite lavish fundraising events held in its name, Tsholofelo Trust's bank account held just over R17 000 in August. One such event was held in Rustenburg's city hall in April to mark Molefe's 50 birthday. At this bash, tables were sold at rates of up to R10 000 each. But no Aids organisation could be found that ever benefited from the trust. Moepi points out that 'If R1 million has been eaten in the North West by certain people, such corruption affects the whole country.'
Full Article in the Sunday Independent: www.iol.co.za...
Limpopo Premier took R5m pensions backhander, says leading businessman
Noseweek, reports that one of South Africa's most established and respected black businessmen has claimed to know - first hand - that the Premier of Limpopo and one of his MEC's each have a secret interest in a company involved in the distribution of monthly pension payments and social grants in the province. As a result, says the businessman, the two senior ANC politicians have for the past four years each had a secret, extra monthly income of R119, 000 - a total income of more than R5m - in addition their official salaries. The claims were made to Noseweek, by South Africa's cane furniture king, Habakuk Shikoane - and subsequently corroborated by Brian van Rooyen, founder and chief executive of the JSE-listed venture capital company Labat Africa - will soon to be tested in the Pretoria High Court.
Full Article in Noseweek: October 2003. ...
Oh Dear, Minister Mabona, you Fibbed
The Mail & Guardians Matuma Letsoalo and Wisani wa ka Ngobeni, allege that new details have emerged of the cosy relationship between Walter Senoko, the businessman who paid Mpumalanga's public works minister Steve Mabona R1-million, and the minister. The M&G in a previous report, had revealed how, within days of R6,6 million being paid to Senoko's company Positioning Corporate Underwriters (PCUIC) by Mabona's department in June, PCUIC transferred two amounts of R500 000 each to Mabona. The R6,6 million had been paid in terms of an underwriting contract between Mabona's department, PCUIC and a construction company. Mabona had previously denied the M&G's original story that the two R500 000 payments were kickbacks, claiming that they had been deposits on a car and house he had sold Senoko. However the M&G raised a number of questions about this explanation, including why neither the house nor the car has been transferred into Senoko's name. Mabona defended himself against charges of a conflict of interest, alluding to his non - involvement with administrative issues. This however, appears false in light of new evidence obtained by M&G. In May last year, documents show, Mabona travelled to China with a delegation that included Senoko, to inspect equipment, which Mabona's department wanted to acquire to replace its old fleet of earthmoving machinery. The M& G argues, that this in itself suggests that Mabona took an active interest in departmental contracts. What increases the likelihood, however that Mabona knew Senoko was about to get a contract, were two further aspects that show the close relationship between Mabona's department and Senoko:
- Senoko's funding of Mabona and his departmental official's, which he then billed the department for R300 000 even though there was no tender for this.
- Mabona's interference in the tender process, in which he tried to recommend that Senoko's company be given the contract to supply more than R9 million worth of earthmoving machinery. However the tender board turned this down at the end of May last year, advising Mabona's department to 'adhere to the normal tender procedures for the acquisition of the department mentioned above'. In further developments, the Scorpions have issued a warrant of arrest for Senoko, another warrant of arrest was issued against William Mthombothi, the head of Mabona's public works department.
Full Article in Mail & Guardian: www.mg.co.za...
and Allafrica.com : allafrica.com...
Block disclosures under scrutiny
Marianne Merten reports in the Mail & Guardian that the declarations of financial interests and benefits by Northern Cape minister for transport, roads and public works, John Block, made under the Executive Members Ethics Act, form part of investigations into his alleged corruption. Merten argues that such use of declarations, possibly a first among the provinces, has emerged in the wake of last week's Institute for Democracy in South Africa (Idasa) report on government ethics. The report was critical of provinces and the Presidency for failing to consistently implement the 1998 Act and 2000 Code of Ethics. Northern Cape director general Michael Hendricks confirmed the declarations were submitted to the provincial auditor general and the public protector. Both are probing claims that Block has interests in companies that received tenders from his department, and misused government funds.
For more on this story, see Allafrica.com: allafrica.com...
E-Cape officials in corruption crackdown.
Mail & Guardian reports, that several officials employed by the Eastern Cape provincial administration were arrested at their offices recently in connection with fraud and corruption charges, police said. Superintendent Fatyela Mzukisi, said the joint anti - corruption task team began making the arrests at about 8:30am when the officials arrived for work in Queenstown, Umtata and Port Elizabeth. Numerous documents were also taken as evidence in fraud and corruption investigations involving R4,4 million, Mzukisi said. All those arrested appeared in court and were released on bail.
Full article in the SABC News: www.sabcnews.com...
LOCAL GOVERNMENT
Thieving official ordered to pay up
The Helderberg District Mail reports that a former city of Cape Town employee will have to use her family's pension money to pay back more than R57 000 she stole from ratepayers after she was found guilty on 43 counts of fraud. Gouwa Brinkhuis has been sentenced to a R10 000 fine or 20 months imprisonment on 19 charges of fraud by a Helderberg Magistrate's court, and to three years imprisonment suspended for five years on the remaining 24 charges. She also received a sentence of 12 months 'correctional supervision' with 10 hours of community service per month. As debtors clerk, Mrs Brinkhuis handled enquiries from the public on their water and electricity accounts. She was not authorised to receive money from them, but did this from time to time, handing the money on to the cashiers for processing. On 43 occasions between October 2001 and May this year, however, she did not pay in money given to her, or only paid it in part. Brinkhuis and her husband have agreed that both their pensions could be used to pay back the R57 162.50 she stole from unsuspecting ratepayers. The city's 'internal audit services' initially found her guilty on 43 charges of theft and fraud and dismissed her. After she admitted guilt and was dismissed, the city filed a criminal case with the police. The council also applied for Section 300 notice in terms of the 'Criminal Procedure Act' so they could apply for the reimbursement of the stolen cash. People who know of any fraud are asked to contact the city's Fraud Hotline on: 0800 323 130.
Full article in the Helderberg District Mail: www.news24.com...
'Boss of the Year' in trouble.
The Citizen reports that barely a week after becoming 'boss of the year', Nelspruit municipal manager Thoko Mashiane has become embroiled in a nepotism scandal, after she allegedly bought T-shirts with public money from a company owned by her husband. All in all Mashiane is reported to have spent more than R91 000 to buy T-shirts, budget booklets and paper bags to promote the local budget, without the approval of executive mayor Jeri Ngomane. The marketing ploy came under the spotlight when The Citizen discovered that the T-shirts, which cost the taxpayer R56 000, were bought from a company belonging to Mashiane's husband, Vusi: 'Mndeni Business Enterprises', a Witbank based company. Mrs Mashiane now faces the wrath of the council because she did not declare her business interests. Furthermore, according to the local authority procurement rules, the executive mayor, Jeri Ngomane, must approve any purchase for an amount higher than R60 000.
Full Article see: The Citizen (31/10/2003) ...
INDUSTRIES
Biggest SA white - collar criminal incarcerated
Pretoria businessman David Alexander was recently sent imprisoned for15 years for his involvement in one of South Africa's biggest white-collar crimes. Alexander was the managing director of KNA Insurance and Investment Brokers, which became involved in large-scale fraud involving second - hand endowment policies. After months of negotiation, Alexander and the prosecuting team on Monday finally reached an agreement, in terms of which Alexander admitted guilt to 227 fraud, theft and money laundering charges. The rest of the charges were withdrawn and the State also withdrew all charges against Alexander's wife, Lynne, who was the financial director of the company. In terms of their plea bargain arrangement, Alexander was sentenced to a total of 135 years imprisonment of which all sentences will run concurrently, so that he will serve 15 years. Alexander's victims, included a Jersey - based company and a German bank, which invested R250-million in South Africa, but only recovered R200 million, supported the agreement on sentencing.
Full Article at iAfrica.com: iafrica.com...
Corruption claim falls to pieces at RAG probe.
Rob Rose reports in Business Day, that justice ministry deputy director-general Mike Tshishonga's claims of corruption in the liquidation of 'Retail Apparel Group (RAG), fell to pieces on, as new evidence was presented to the inquiry contradicting his allegations. This comes as a blow to Tshishonga's efforts to convince the public of the truth of allegations of corruption and nepotism he brought against his boss, Justice Minister Penuell Maduna. Thsishonga accused Maduna of granting 'illicit favours' to RAG liquidator Enver Motal, and he also alleged that R950 000 'changed hands' in the RAG inquiry. He had relied on a document he claimed was a 'forensic report' into the liquidation sector, but the author of that report appeared to contradict Thsishonga.
Full Article in allafrica.com: allafrica.com...
Vodacom's Nigerian troubles continue
ThisDay reports that, Vodacom, the cellphone network operator, has become embroiled in allegations of corruption that could result in its shareholders being prosecuted in the US, according to the company fighting it for control of a Nigerian cellular operator. ThisDay reports that that Econet Wireless International (EWI) and Vodacom are struggling for control of Econet Nigeria, the second largest cellphone company in Nigeria. EWI recently released a letter that it said it sent to Vodacom early this month. The letter details attempts by, among others, directors of Econet Nigeria to procure bribes, some of which EWI says have been paid. Should Vodacom manage to take control of Econet Nigeria, EWI said, it would have to decide whether or not to pay the remaining bribes. In the letter, EWI threatened to approach the US department of justice. It could investigate Telkom and Vodafone, US-listed Vodacom shareholders, under the 'American Foreign Corrupt Practices Act'. If either were found guilty of bribery they would face hefty penalties. Even if no evidence was found, the companies' share prices could suffer.
To view the full article, see ThisDay (17/11/2003) ...
Also see Financial Mail: free.financialmail.co.za...
Not out of the (Komatiland) woods yet
Sam Sole reports in the Mail & Guardian that the ghosts of Zama, may yet return to haunt the government's attempt to sell of 75 % of its most valuable forests, the so-called Komatiland assets in Mpumalanga. According to Sole, the previous privatisation deal was scrapped last year when it was revealed that the preferred bidder, the Zama consortium, had paid R55 000 to benefit Andile Nkuhlu, chief director of the Department of Public Enterprises ' and chairperson of the bid's evaluation committee. Nkuhlu resigned from the department ahead of recommended disciplinary proceedings after the Public Service Commission, found he failed to disclose R154 000 in benefits received from Zama and other sources in the run - up to the decision to award the R335-million forestry privatisation bid to Zama. Sole reports that it has now emerged that Nkuhlu has been assisting Miri Forestry, the Zama reincarnation that is again tipped to be the front - runner in the latest round of bidding for Komatiland. Responding to queries about Nkuhlu's role, Public Enterprises Director General, Eugene Mokeyane, told the M&G: 'we heard that Mr Nkuhlu was advising one of the bidders in this transaction. However, it should be borne in mind that no government prescript prohibits a former government employee from becoming a transaction adviser, nor does the Public Finance Management Act prescribe any cooling off period'Therefore we could not have specifically decided to exclude Mr Nkuhlu on this transaction as an adviser to any of the bidders'.
Full Article in the Mail & Guardian (14/11/2003): www.mg.co.za...
CRIME AND JUSTICE
I stole prisoner's R6 000 inheritance, official yells Jali Commission.
Fina Peete reports in the Cape Times, that an Valencia Mgweba, an assistant - director based at the Pretoria Central Prison, admitted before the Jali Commission of inquiry investigating corruption in prisons that she stole R6 000 belonging to a prisoner. Mgweba said she had failed to observe the prison regulations by not recording the prisoner's valuable items for safekeeping. It is reported that she had been approached by prisoner Stoffel Mokwena for permission to open a bank account to deposit the R6 000 he had inherited from his parents. She had arranged transport and an escort for Mokwena to go to the bank and on his return he had given her the bankcard and his pin code to keep. 'Mokwena had about R6000 in his bank account. I withdrew some of the money for myself. The rest was withdrawn and used by my daughter' Mgweba told the commission. On hearing about the loss of his money, Mokwena had taken the matter to the head of security at the prison, Sydney Lebese, who reported it to his superior. Mgweba appealed to the commission not to punish her, because she was a single mother. She promised to repay the outstanding amount. Judge Jali said she would hear from her employer what the commission's recommendations would be.
Full Article in the Cape Times (11/11/2003): www.capetimes.co.za...
Net around metro cops widens to 'All Aspects'.
Business Day reports that the Gauteng provincial department of safety and security has been asked to help the municipal authorities in Pretoria to probe all aspects of the city's year-old Metro Police Force. Father Smangaliso Mkhatshwa, Tshwane's executive mayor, said earlier this month that what began as an internal investigation into alleged misconduct by four of the most senior Metro Police officers, was being extended to include 'all aspects of functionality'.
Full Article in Business Day (10/11/2003): www.bday.co.za...
Cops Extort R500 Bribe.
Two Australian tourists claim to have fallen victim to bribery when they had to pay R500 to a group of five Limpopo Province traffic officials. David Bradley and Miriam Scherl said they were on their way from Hoedspruit to Orighstad in Mpumalanga last month when they were stopped by a group of five traffic officials. When the traffic cops inspected the rental car the couple was using, it was found that the licence disk was not attached to the windscreen. 'They told us it was a serious offence to drive an unlicensed car. We tried to explain to them that it was a rented car, but they threatened to arrest us.' Bradley said. They told the couple that they could go if they paid an amount of R500 - and agreed to post a receipt to the two tourists.
Full Article in The Citizen (28/10/2003) ...
SOCIAL JUSTICE
SOCIAL WELFARE: Development CEO Suspended
Rapule Tabane reports in the Mail & Guardian reports that in an attempt to deal with irregularities at the National Development Agency (NDA), Minister of Social Development Zola Skweyiya has suspended CEO Delani Mthembu and instituted a forensic investigation into charges of corruption and mismanagement. The suspension of Mthembu was announced this week after Skweyiya received the results of a preliminary investigation into the NDA. Mthembu had originally been appointed to fill the position of CEO when his predecessor left the NDA under a cloud. Vusi Madonsela (director general of social development department), told the Mail & Guardian that a team of three, headed by the chief financial officer of his department, will run the NDA until the investigation is complete.
Full Article in the Mail & Guardian (31/10/2003): www.mg.co.za...
Also see: www.finance24.co.za...
HOUSING: Housing project collapsed by corruption, says report.
Raitlhwa Moalusi, reports that according to a forensic investigation report, millions of Rands were mismanaged by the executive of the 7 Buildings company ' an initiative to regenerate Joburg's city centre ' and this led to its liquidation. Comprised of seven blocks of flats in the Johannesburg inner city, including Hillbrow and Berea, '7 Building's was set up in 1996 by the Gauteng housing department at a cost of about R8 million. It was meant to ensure tenants were granted secure rights of tenure. But according to Moalusi, the company was liquidated after it ran into difficulties that led to it not repaying the loans and debts. The R8 million was apparently used to buy the dilapidated buildings. In 2001 the housing department launched a forensic investigation led by 'CVMP Ramathe Forensic Accounting Services', which found, amongst other that ''...directors opened banking accounts wherein cash received from residents was deposited, and such monies were then misappropriated by them.' The housing department has since refused to intervene in the matter, saying a criminal case had been opened by the Commercial Crimes Unit in 2001.
Full article in the Sowetan Sunday World 02/11/03 ...
EDUCATION: PE University's Finance Chief Faces R1m Fraud Inquiry.
The head of finance at Vista University's Port Elizabeth campus, Mowabo Dyubele, is facing an internal hearing into alleged financial misconduct of more than R1 million. Mr Dyubele is also vice - president and head of Eastern Province rugby's finance portfolio. He was suspended earlier this year. Sources said it was alleged that Mr Dyubele, had paid money into his account after producing fake invoices for vitamins and protein drinks for the university's rugby team. Other allegations include that he claimed for the maintenance of university buildings and the monies were then also paid into his account.
Full Article in the Eastern Cape Herald (31/10/2003) ...
Reform: Corruption Bill goes for the big fish
In preparation of its presentation to the National Assembly on 27 November the Parliamentary Portfolio Committee for Justice & Constitutional Development have made last-minute changes to the 'Prevention of Corrupt Activities Act' to ensure that 'the big fish' in the public and private sectors were specifically targeted and the police were not swamped by all kinds of petty allegations of corruption. Chairman Johnny de Lange said the committee's recent decision to make corruption a reportable offence had major implications, not least for the criminal justice system. De Lange was quoted saying 'the people we are really after are actually the big fish, such as the managing directors or senior managers of companies and the director-general of departments, and not junior workers who stole minor items and were usually easily caught out'. The act provides for companies and individuals who tried to 'crook the government tender system' to be placed on a blacklist for between five and 10 years after they had been tried and found guilty. The blacklist would be maintained by treasury and, unlike present provincial blacklists drawn up by officials, would be open to full public scrutiny to help the government and the private sector check that they were not dealing with a blacklisted company.
Full Article in Business Report: www.busrep.co.za...
Reform: New measures tackle corruption in municipal tenders.
Steve Matthewson reports in ThisDay that the adjudication of tenders worth billion of Rands in municipalities across the country will soon shift from elected councillors to paid technocrats in an attempt to tighten up procurement systems. The changes, contained in the 'Municipal Finance Management Bill', are expected to be passed this year. Under it, councillors will be barred from serving on municipal tender committees, or even attending as observers. The aim of the legislation is not only to curb corruption and cronyism among councillors but also to ensure that municipal managers ' the accounting officers of municipalities ' take responsibility for financial decisions. Ismail Momoniat, the acting director-general of the National Treasury, said the bill aimed to separate the roles of councillors and officials and ensure that councillors fulfilled their oversight function. The legislation brings local government into line with the national and provincial tiers, where procurement, or supply chain management, is the responsibility of non-elected officials. Other measures like internal audits will also have to be put in place and importantly ' detailed regulations for tender procedures must still be finalised.
Full Article in: ThisDay (03/11/2003) ...
Reform: Who Pays for SA's Politics? Idasa Launches Court Case to Unearth Funders.
The Institute for Democracy in South Africa (Idasa) plans to take five political parties to court early next month to force them to disclose their funders. Idasa has targeted five of the largest parties represented in the national assembly, including the ANC, the DA, the IFP, the NNP, and the ACDP. The application under the Access to Information Act would has been made and Idasa had briefed senior counsel Wim Trengrove to present its case. Idasa says the private funding of political parties is shrouded in secrecy and ought to be transparent. No legislation yet regulates private funding to political parties, but the recently formulated African Union Convention on Preventing and Combating of Corruption will eventually force South Africa to adopt such a law. The convention calls for legislation to incorporate the 'principle of transparency into funding of political parties'. Political parties spent between R300 million and R500 million on their campaigns in the 1999 election, but only R53 million came from public funds. (Since this report was the ACDP has disclosed the sources of its funding ' Ed.)
Full Article in ThisDay (13/11/2003) ...
Reform: Scopa wants to alter apartheid law.
Parliament's watchdog committee on public accounts (Scopa), wants an apartheid-era law to be amended to avoid the perception of undue executive influence on the auditor general (AG) ' as was the case with the arms deal probe. The recommendation is contained in Scopa's draft resolution on AG Shauket Fakie's special report on the joint investigating teams final arms deal report that was tabled in parliament in 2001. The deal was investigated by the AG, the public protector and the national directorate of public prosecutions. Fakie submitted his report earlier this year after sustained allegations from opposition MPs and the media that the team's report had been heavily edited and doctored ' under pressure from the executive. In a draft resolution that will be tabled in the national assembly, Scopa said Fakie had no choice but to consult the executive in terms of Section 4 (6) of the auditor - general act, although that provision did not oblige him to follow its advice. Scopa noted that it was section 4 (6) that had given rise to the accusation that independence of the auditor-general had been compromised and that members of the executive had been given the opportunity to influence the investigation involving their conduct.
Full Article in ThisDay (14/11/2003) ...
Research: MPs must toe the line.
Parliament needs to introduce clear and strict penalties to ensure MPs comply with the institution's code of conduct says Idasa. This view is reflected in the institute's recently released report on government ethics in post - apartheid South Africa. The research evaluated the implementation of the 'Executive Member's Ethics Act', and the pursuant 'Code of Ethics', the 'Code of Conduct for Members of Parliament', the codes for provincial legislature members, and the financial disclosures regulations for senior public servants. According to Idasa's report, the defects relating to the implementation of the parliamentary code lie in the code itself. 'One of the problems or limitations of the code is the non - existence of severe penalties for failure to comply', Idasa says. One of the key defects of the code is that it is not a law, meaning that MPs can escape its jurisdiction by simply leaving Parliament. Thus according to the report, there is a need for Parliament to ensure that the code sets out clear and strict penalties for failure to comply. The report espouses the view, that MPs are most likely to comply with the code when stringent penalties are put in place and effectively implemented. The report also recommends that the role of the registrar of member's interests be expanded to ensure she is able to perform duties, such as verification of disclosures and investigations, without a directive from the ethics committee. This would be useful in ensuring the records are not just kept without being checked against MPs activities for any potential or actual conflict of interests. There also appears to be a general lack of awareness about the requirements of the act and the code.
Full Article in News24.com: www.news24.com...
For a copy of the report see: www.idasa.org.za...
Or contact Lorato Banda: lorato@idasact.org.za
The Parliamentary Ethics Committee
The South African parliamentary code of conduct, introduced in 1997, makes provision for the establishment of a Joint Committee on Ethics and Members' Interests. The 'Ethics Committee' is comprised of 27 National Assembly members and 13 permanent members of the Council. The Committee is composed in such a way that the majority party in Parliament (currently the ANC) always retains a majority in this committee ' it has one member more than the combined total of members representing all other parties in the Committee. The chairperson and the deputy chairperson are elected from the two respective houses of Parliament.
The following are the functions of the Joint Committee on Ethics and Members' Interests:
- Implement the code of conduct for the Assembly and Council Members;
- Develop standards of ethical conduct for Assembly and Council Members;
- Serve as an advisory and consultative body, both generally and to Members, concerning the implementation and interpretation of the code;
- Regularly review the code and make recommendations for its amendment, and perform the other functions and exercise the other powers reasonably assigned to the Committee in the code and in terms of resolutions adopted in both the Assembly and the Council.
The code also requires the Committee to report to both houses at least annually on the operation and effectiveness of the code. The Committee meetings are closed to the public when the Committee considers a matter affecting a specific Assembly or Council Member and the committee regards that matter confidential. Members of the Committee swear or affirm before the speaker or chairperson of the Council to comply with the confidentiality requirements set out in the code. This particular aspect has been criticised by both civil society and some MP's as creating a suspicion regarding the deliberations as they may involve misconduct by elected representatives of the people.
In addition, the Parliamentary Code requires MP's to declare their private financial interests. The declaration of interest is made in confidential and public section of the Register of Members Interests. The public has no access to the former. The public section requires the disclosure of the following items:
The number, nature and nominal value of share - holdings; The identity of any extra employment; The identity of any directorship or partnership; The identity of remuneration of any consultancy (lobbying is prohibited); The source and description of sponsorship; Any interest in property; Details of foreign travel; Pensions; Gifts and hospitality above the value of R350 etc.
The confidential section requires disclosure of the following items:
Remuneration of extra employment including directorship or partnerships; The value of any other benefit, pension and private residence of an MP. Also see the Idasa report on government ethics for more details (See Research)
Also: www.parliament.gov.za...
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"Corruption and misadministration are inconsistent with the rule of law and the fundamental values of our Constitution. They undermine the constitutional commitment to human dignity, the achievement of equality and the advancement of human rights and freedoms. They are the antithesis of the open, accountable, democratic government required by the Constitution. If allowed to go unchecked and unpunished they will pose a serious thereat to our democratic state". President of the SA Constitutional Court (Judge Arthur Chaskalson), 2000
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