A year since their last court appearance, the accused in the so-called “Amigos” R144 million provincial government racketeering, corruption and fraud trial are no closer to standing trial.
When they appeared briefly in the Durban High Court on Tuesday, their case was adjourned for another year – to February 8, 2016 – because the main accused, Cape Town billionaire Gaston Savoi, had launched another “interlocutory application”, this time for a permanent stay of prosecution.
Savoi, who also represents his company, Intaka Holdings, and his colleague, Fernando Praderi, were again absent from court – with the blessing of the State.
Their advocate, Jimmy Howse, placed on record that this was the arrangement with all adjournments and warrants of arrest that were issued but stayed.
Before Acting Judge Eric Nzimande were the former head of the provincial Treasury, Sipho Shabalala, his wife, Beatrice, former heads of health Busisiwe Nyembezi and Ronald Green-Thompson, former health officials Victor Ntshangase and Alson Buthelezi, and advocate Sandile Kuboni.
The reason for the case’s adjournment in February last year was that Savoi was waiting for the outcome of his Constitutional Court challenge to sections of the Prevention of Organised Crime Act. He argued that these were vague and open to “personal and political manipulation” – and used as an example the withdrawal of charges against his former co-accused, ANC politicians Mike Mabuyakhulu and Peggy Nkonyeni.
The Constitutional Court handed down judgment in March last year, dismissing his attacks and finding unanimously that the definition of a “pattern of racketeering activity” was clear.
On the issue he raised about the act allowing “hearsay evidence”, the court said this did not render the trial automatically unfair and the trial court was best placed to deal with this issue.
Savoi has now launched another application in the Pietermaritzburg High Court for a permanent stay of prosecution.
Legal sources said there had been several “skirmishes” around this, particularly about provision of documents from the State. While all the papers had now been filed – and it was hoped it would be argued in March – the dispute had not been finally resolved and it would not be heard until later in the year.
“Of course, depending on the outcome, one or other party may wish to take it to a higher court on appeal, which will push any trial date further in the future,” a source said. Next year’s date remains a provisional one.
Savoi is accused of paying sweeteners to officials – including an alleged R1m to the ANC – to score contracts for the supply of water purification and oxygen plants to the departments of health and local government.
Initially there were 23 accused facing 54 counts. But the new indictment now lists only 17 charges.
In documents in support of an asset forfeiture application, the State put up transcripts of text messages in which some of the accused referred to each other as “Amigo”.
Source: Iol
Showing posts with label Mike Mabuyakhulu. Show all posts
Showing posts with label Mike Mabuyakhulu. Show all posts
Wednesday, January 21, 2015
Sunday, September 2, 2012
NPA won't divulge report on decision to drop Nkonyeni charges - DA KZN
ACTING KZN Prosecutions Director Moipone Noko has officially refused to release the report on why the National Prosecuting Authority (NPA) dropped fraud and corruption charges against two high-profile KZN politicians.
Advocate Noko wrote to the DA late Wednesday stating that the reasons for not charging KZN Speaker Peggy Nkonyeni and provincial Finance MEC Mike Mabuyakhulu are "confidential" and cannot be released. The DA will today officially submit a Promotion of Access to Information Act (PAIA) request to the NPA to get this information. We believe that the NPA must make the record of decision public as it is in the public's interest to know whether the criminal justice system is free from political bias.
This is important given the massive network of politicians and officials in multiple provinces who are linked to dealings with controversial businessman Gaston Savoi. The DA has previously won a Supreme Court of Appeal case against the NPA for the release of the report on why corruption charges against President Zuma were dropped.
We believe that the precedent set by this decision should also apply to the KZN NPA's report on the so-called "Amigo's" case.
Source: Politicsweb
Advocate Noko wrote to the DA late Wednesday stating that the reasons for not charging KZN Speaker Peggy Nkonyeni and provincial Finance MEC Mike Mabuyakhulu are "confidential" and cannot be released. The DA will today officially submit a Promotion of Access to Information Act (PAIA) request to the NPA to get this information. We believe that the NPA must make the record of decision public as it is in the public's interest to know whether the criminal justice system is free from political bias.
This is important given the massive network of politicians and officials in multiple provinces who are linked to dealings with controversial businessman Gaston Savoi. The DA has previously won a Supreme Court of Appeal case against the NPA for the release of the report on why corruption charges against President Zuma were dropped.
We believe that the precedent set by this decision should also apply to the KZN NPA's report on the so-called "Amigo's" case.
Source: Politicsweb
Friday, August 24, 2012
Lawrence Mrwebi accused of interfering in staff fraud probe
Controversial National Prosecuting Authority strongman Lawrence Mrwebi is at the centre of new claims of trying to interfere with an investigation. Mrwebi, appointed late last year to head the NPA’s Specialised Commercial Crime unit, has accumulated a number of controversial interventions in politically charged cases. They include his instruction to withdraw charges against suspended crime intelligence supremo Richard Mdluli and his review of charges against KwaZulu-Natal provincial heavyweights Mike Mabuyakhulu and Peggy Nkonyeni.
But the latest allegation is so serious that it is said to have been brought to the attention of the Hawks, although this could not be confirmed. And it is also much closer to home, involving current and former members of the NPA staff in corruption allegations that seem to have been kept buried for years.
The background
The case goes back to 2006 when the NPA advertised a tender for security at various NPA buildings around the country for an amount of R13-million. In a process that formed the basis of criminal charges against five men, the tender was awarded to an unknown KwaZulu-Natal security company, Intense Protection and Tourist Services, owned by KwaZulu-Natal businessperson Muziwandile Nala. By this time, the cost had increased to R19-million.
According to a summary of the evidence in the case, a key player in setting up the tender was the then acting head of the KwaZulu-Natal security and risk management unit of the NPA, Terence Joubert. Prior to the issuing of the tender, key members of its national security and risk management team travelled to Durban on official business.
The ‘coloured’ group
The group included its head, Walter “Wally” Rhoode, and the man who was later to serve as the chair of the bid evaluation committee, John Maree. Joubert, Rhoode and Maree formed part of what was later termed a “coloured” group that dominated the NPA’s security structures. During that visit, Joubert brought Nala after hours to the hotel in order to introduce him to the NPA delegation. Nala was later encouraged to bid for the tender and approached his former mentor, prominent Durban VIP protection specialist Andre van der Byl, to submit a joint bid because Nala had no capacity to meet the bid requirements.
According to the evidence summary, Nala approached Van der Byl with the claim that “through Terence Joubert … and other coloureds based at head office” he was “guaranteed” to win the tender.
The ‘scam’
The summary records that in the open tender no company met the minimum 60% score. Rhoode and the NPA’s head of supply chain management, Tebogo Sethabela, then recommended a closed tender through a request for bids from companies that had scored 40% or more. Inexplicably, Intense Protection was invited to bid again, although, according to the investigation, it had scored only 27% in the first round.
The instruction to invite Intense Protection was issued by both Maree and Sethabela, although they both allegedly knew the company did not qualify. It is alleged that Nala, Joubert and Van der Byl, who is a state witness, travelled to Pretoria for a briefing and that Nala handed over an envelope believed to contain R20 000 to Rhoode. Nala is alleged also to have gratified others in the syndicate, including Joubert, Maree and Sethabela.
The closed tender, under the chairmanship of Maree, disqualified the other two bidders and awarded the contract to Intense Protection. Van der Byl pulled out of the deal.
Joubert
Joubert occupies a highly sensitive position in the NPA’s Durban office and has wide internal access to information and involvement in internal investigations of NPA staff. It was this role that appears to have blown the lid on the alleged tender scam. Colleagues suspected that Joubert was being used by organised crime targets to disrupt their investigations by laying complaints against them, which Joubert would then investigate because of his risk management mandate.
It appears the NPA head office was, in turn, tipped off about an infraction by Joubert, who allegedly used a state vehicle for private travel to the Eastern Cape. The probe, by the Scorpions’s special national projects unit, was completed in August 2007 and is understood to have revealed the relationship between Nala and Joubert. Allegations and evidence against Joubert were handed to the NPA’s integrity management unit, led by Prince Mokotedi.
There the matter appears to have lain dormant until 2009 when, in May of that year, the Sowetan was tipped off about the Intense Protection contract. Following inquiries, the NPA announced that the matter had been referred to the police for investigation. Although no names of suspects were released, Rhoode, who had left the NPA to take over as head of security for the Fifa World Cup, unexpectedly resigned his position three months later.
Mokotedi
Mokotedi has since emerged as a key ally of Mrwebi and the acting national director of public prosecutions, Nomgcobo Jiba. Together with Jiba, he assisted Mdluli with the investigation into Gauteng Scorpions boss Gerrie Nel, which led to Nel’s arrest just ahead of the charging of former police commissioner Jackie Selebi.
Jiba faced disciplinary charges because of her actions and both Mdluli and Mokotedi gave statements in her defence. Both Mokotedi and Mrwebi gave evidence for the defence in the Selebi trial.
Enter the Hawks
According to evidence by the prosecutor in court, police began seriously probing the Intense Protection case only in late 2011 when it was taken over by the Hawks. In early December 2011, Hawks investigator Colonel Frans Kola arrested Nala, Joubert, Maree, Rhoode and Sethabela for tender fraud. They were all released on bail and have indicated they believe the state does not have a case against them.
However, during Kola’s investigation, the police conducted a search and seizure operation on Joubert. It was at this stage that Mrwebi allegedly intervened.
Enter Mrwebi
According to an account provided to the Mail & Guardian, Mrwebi “stormed in” to the office of the prosecutor overseeing the case, advocate Nathi Mncube, and allegedly instructed him to halt the execution of the search warrant.
Mncube asked to know the basis of this instruction because, at the time, he did not report to Mrwebi.
Mrwebi, who knows Joubert well from his time as head of the Scorpions in KwaZulu-Natal, could not provide a satisfactory justification and Mncube refused his demand.
It is alleged that Mrwebi thereupon telephoned a police officer involved in the search and attempted to instruct him to call off the search. The officer also refused.
Mrwebi also instructed Mncube to hand over the investigation docket. Mncube refused.
Following Jiba’s appointment to act as national director of public prosecutions in the place of Menzi Simelane at the end of December 2011, she called for a briefing on cases that had been overseen by Simelane, which included the Intense Protection matter.
Mncube was reluctant to brief Jiba in the presence of Mrwebi because of his previous interference, but she insisted.
Following the briefing, she confirmed that he must report to Mrwebi on this matter.
NPA response
The NPA declined to deal with the allegations of interference.
NPA spokesperson Bulelwa Makeke said in an email response: “As a matter of principle, we will not be drawn into responding to gossip-mongering and clandestine media leaks by faceless internal sources. Doing so will be legitimising clearly unethical behaviour by employees with anti-establishment agendas.”
On May 28, Mncube was provisionally forced to withdraw charges when the magistrate in the Pretoria Regional Court refused to grant another postponement for further investigation.
Mncube complained that part of the delay was owing to the investigator, Kola, having been removed from the case and the fact, since March, that two new officers had to be briefed.
The NPA said: “The investigations are on track and advocate Mncube will re-enrol the case as soon as the outstanding elements of the investigation are completed.”
Source: Mail & Guardian
But the latest allegation is so serious that it is said to have been brought to the attention of the Hawks, although this could not be confirmed. And it is also much closer to home, involving current and former members of the NPA staff in corruption allegations that seem to have been kept buried for years.
The background
The case goes back to 2006 when the NPA advertised a tender for security at various NPA buildings around the country for an amount of R13-million. In a process that formed the basis of criminal charges against five men, the tender was awarded to an unknown KwaZulu-Natal security company, Intense Protection and Tourist Services, owned by KwaZulu-Natal businessperson Muziwandile Nala. By this time, the cost had increased to R19-million.
According to a summary of the evidence in the case, a key player in setting up the tender was the then acting head of the KwaZulu-Natal security and risk management unit of the NPA, Terence Joubert. Prior to the issuing of the tender, key members of its national security and risk management team travelled to Durban on official business.
The ‘coloured’ group
The group included its head, Walter “Wally” Rhoode, and the man who was later to serve as the chair of the bid evaluation committee, John Maree. Joubert, Rhoode and Maree formed part of what was later termed a “coloured” group that dominated the NPA’s security structures. During that visit, Joubert brought Nala after hours to the hotel in order to introduce him to the NPA delegation. Nala was later encouraged to bid for the tender and approached his former mentor, prominent Durban VIP protection specialist Andre van der Byl, to submit a joint bid because Nala had no capacity to meet the bid requirements.
According to the evidence summary, Nala approached Van der Byl with the claim that “through Terence Joubert … and other coloureds based at head office” he was “guaranteed” to win the tender.
The ‘scam’
The summary records that in the open tender no company met the minimum 60% score. Rhoode and the NPA’s head of supply chain management, Tebogo Sethabela, then recommended a closed tender through a request for bids from companies that had scored 40% or more. Inexplicably, Intense Protection was invited to bid again, although, according to the investigation, it had scored only 27% in the first round.
The instruction to invite Intense Protection was issued by both Maree and Sethabela, although they both allegedly knew the company did not qualify. It is alleged that Nala, Joubert and Van der Byl, who is a state witness, travelled to Pretoria for a briefing and that Nala handed over an envelope believed to contain R20 000 to Rhoode. Nala is alleged also to have gratified others in the syndicate, including Joubert, Maree and Sethabela.
The closed tender, under the chairmanship of Maree, disqualified the other two bidders and awarded the contract to Intense Protection. Van der Byl pulled out of the deal.
Joubert
Joubert occupies a highly sensitive position in the NPA’s Durban office and has wide internal access to information and involvement in internal investigations of NPA staff. It was this role that appears to have blown the lid on the alleged tender scam. Colleagues suspected that Joubert was being used by organised crime targets to disrupt their investigations by laying complaints against them, which Joubert would then investigate because of his risk management mandate.
It appears the NPA head office was, in turn, tipped off about an infraction by Joubert, who allegedly used a state vehicle for private travel to the Eastern Cape. The probe, by the Scorpions’s special national projects unit, was completed in August 2007 and is understood to have revealed the relationship between Nala and Joubert. Allegations and evidence against Joubert were handed to the NPA’s integrity management unit, led by Prince Mokotedi.
There the matter appears to have lain dormant until 2009 when, in May of that year, the Sowetan was tipped off about the Intense Protection contract. Following inquiries, the NPA announced that the matter had been referred to the police for investigation. Although no names of suspects were released, Rhoode, who had left the NPA to take over as head of security for the Fifa World Cup, unexpectedly resigned his position three months later.
Mokotedi
Mokotedi has since emerged as a key ally of Mrwebi and the acting national director of public prosecutions, Nomgcobo Jiba. Together with Jiba, he assisted Mdluli with the investigation into Gauteng Scorpions boss Gerrie Nel, which led to Nel’s arrest just ahead of the charging of former police commissioner Jackie Selebi.
Jiba faced disciplinary charges because of her actions and both Mdluli and Mokotedi gave statements in her defence. Both Mokotedi and Mrwebi gave evidence for the defence in the Selebi trial.
Enter the Hawks
According to evidence by the prosecutor in court, police began seriously probing the Intense Protection case only in late 2011 when it was taken over by the Hawks. In early December 2011, Hawks investigator Colonel Frans Kola arrested Nala, Joubert, Maree, Rhoode and Sethabela for tender fraud. They were all released on bail and have indicated they believe the state does not have a case against them.
However, during Kola’s investigation, the police conducted a search and seizure operation on Joubert. It was at this stage that Mrwebi allegedly intervened.
Enter Mrwebi
According to an account provided to the Mail & Guardian, Mrwebi “stormed in” to the office of the prosecutor overseeing the case, advocate Nathi Mncube, and allegedly instructed him to halt the execution of the search warrant.
Mncube asked to know the basis of this instruction because, at the time, he did not report to Mrwebi.
Mrwebi, who knows Joubert well from his time as head of the Scorpions in KwaZulu-Natal, could not provide a satisfactory justification and Mncube refused his demand.
It is alleged that Mrwebi thereupon telephoned a police officer involved in the search and attempted to instruct him to call off the search. The officer also refused.
Mrwebi also instructed Mncube to hand over the investigation docket. Mncube refused.
Following Jiba’s appointment to act as national director of public prosecutions in the place of Menzi Simelane at the end of December 2011, she called for a briefing on cases that had been overseen by Simelane, which included the Intense Protection matter.
Mncube was reluctant to brief Jiba in the presence of Mrwebi because of his previous interference, but she insisted.
Following the briefing, she confirmed that he must report to Mrwebi on this matter.
NPA response
The NPA declined to deal with the allegations of interference.
NPA spokesperson Bulelwa Makeke said in an email response: “As a matter of principle, we will not be drawn into responding to gossip-mongering and clandestine media leaks by faceless internal sources. Doing so will be legitimising clearly unethical behaviour by employees with anti-establishment agendas.”
On May 28, Mncube was provisionally forced to withdraw charges when the magistrate in the Pretoria Regional Court refused to grant another postponement for further investigation.
Mncube complained that part of the delay was owing to the investigator, Kola, having been removed from the case and the fact, since March, that two new officers had to be briefed.
The NPA said: “The investigations are on track and advocate Mncube will re-enrol the case as soon as the outstanding elements of the investigation are completed.”
Source: Mail & Guardian
Friday, August 17, 2012
Charges against officials withdrawn
Charges of fraud and corruption against six people, including two high-ranking ANC KwaZulu-Natal officials, have been withdrawn, the National Prosecuting Authority (NPA) said on Friday. “The acting Director of Public Prosecutions advocate Moipone Noko has withdrawn charges against six accused in the Intaka case,” provincial NPA spokeswoman Natasha Ramkisson said.
Charges were dropped against KwaZulu-Natal legislature speaker Peggy Nkonyeni, economic development MEC Mike Mabuyakhulu, Lindelihle Mkhwanazi, Nozibele Phindela, Jabulani Thusi and Ian Blose.
“Upon a thorough and interrogative assessment, available evidence including consultations with some key witnesses, the acting DPP in consultation with the prosecution team felt there are no prospects of a successful prosecution, therefore these charges can not be sustained against them during trial,” Ramkisson said.
The six were linked to the sale of water purification plants to the KwaZulu-Natal health department, allegedly at inflated prices. Initially, 25 people were implicated in the in the so-called “amigos” corruption case which will be heard on October 1 in the Durban High Court. The “amigos case” is a corruption matter involving Uruguayan businessman Gaston Savoi.
Savoi's company Intaka allegedly paid bribes to ensure that a contract to supply water purifiers and oxygen generators to hospitals, at hugely inflated prices, went its way.
He would go on trial with former provincial treasury boss Sipho Shabalala, who allegedly received a R1 million donation for the ANC.
Noko was appointed in July after KwaZulu-Natal's acting head of prosecutions Simphiwe Mlotshwa was ousted, reportedly for refusing to withdraw the charges against the two politicians.
Source: IoL
Charges were dropped against KwaZulu-Natal legislature speaker Peggy Nkonyeni, economic development MEC Mike Mabuyakhulu, Lindelihle Mkhwanazi, Nozibele Phindela, Jabulani Thusi and Ian Blose.
“Upon a thorough and interrogative assessment, available evidence including consultations with some key witnesses, the acting DPP in consultation with the prosecution team felt there are no prospects of a successful prosecution, therefore these charges can not be sustained against them during trial,” Ramkisson said.
The six were linked to the sale of water purification plants to the KwaZulu-Natal health department, allegedly at inflated prices. Initially, 25 people were implicated in the in the so-called “amigos” corruption case which will be heard on October 1 in the Durban High Court. The “amigos case” is a corruption matter involving Uruguayan businessman Gaston Savoi.
Savoi's company Intaka allegedly paid bribes to ensure that a contract to supply water purifiers and oxygen generators to hospitals, at hugely inflated prices, went its way.
He would go on trial with former provincial treasury boss Sipho Shabalala, who allegedly received a R1 million donation for the ANC.
Noko was appointed in July after KwaZulu-Natal's acting head of prosecutions Simphiwe Mlotshwa was ousted, reportedly for refusing to withdraw the charges against the two politicians.
Source: IoL
Tuesday, February 14, 2012
Buthelezi tackles Zuma on corruption
Warning that corruption was on the verge of making South Africa dysfunctional, IFP leader Mangosuthu Buthelezi told President Jacob Zuma on Tuesday that he was shying away from tackling it. “Corruption is the bane of our country,” he said during debate in the National Assembly on last week's State of the Nation address. Buthelezi described corruption as a fundamental threat to South Africa's constitutional democracy. “Yet, sir, you shy away from this issue.”
He said a measure of Zuma's leadership could be taken less by what the president had said than by what he had not said. “How can we embrace hope when our leadership refuses to acknowledge the many problems confronting our country, or the causes that lie at their root? Year after year, the State of the Nation address shifts, without ever addressing previous failures.” Buthelezi said it was an “unspoken fact” that corruption had resulted in the axing of two ministers - Sicelo Shiceka and Gwen Mahlangu-Nkabinde. “The national police commissioner, Mr Bheki Cele, is still suspended pending an investigation into corruption. “The Speaker of the KwaZulu-Natal legislature, Ms Peggy Nkonyeni, and MEC Mr Mike Mabuyakhulu are facing corruption charges in court,” he said.
Two of the nine provinces had “all but collapsed” and the administration of the state was “in shambles”. “Limpopo has been rendered bankrupt through corrupt activities and five of its departments have been taken over by national government.” “In the Eastern Cape, the education system has completely collapsed due to maladministration and corruption, forcing national government to intervene.”
In Gauteng, the provincial government had sought help from the National Treasury for its health department, which was on the verge of collapse. The Free State had sought help after discovering financial mismanagement and non-compliance in supply chain processes in its police roads and transport department. “How, Mr President, do we explain the contamination of public service and commercial interests? It is fatal and yet pursued relentlessly from the lowest to the highest levels of government. “Too many, and I dare say the overwhelming majority, are trying to make money on account of holding public office, being in politics or exercising public power.”
Last year, Special Investigating Unit head Willie Hofmeyr told MPs that 20 percent of South Africa's procurement budget was lost to corruption each year. “According to Transparency International's 2011 Corruption Perceptions Index, South Africa is perceived to be becoming more corrupt with each passing year.” This perception was rooted in reality. “On a scale of 0 (being highly corrupt) to 10 (being very clean), we have fallen from a ranking of 5.1 in 2007, to 4.1 in 2011. “The unspoken fact is that we are on the verge of joining the ranks of dysfunctional states, as the effects of corruption debilitate all spheres of life,” Buthelezi said.
The IFP leader, who turns 84 this year, also criticised Zuma for his support, last Thursday, of the South African Democratic Teachers' Union (Sadtu). “Mr President, you praise the trade unions, and even Sadtu, as if they should be thanked for doing less than the full measure of their destructive capabilities. “Praising the South African Democratic Teachers' Union for its diligent teachers was a step too far in placating the unions.”
The ANC-aligned union continued to act like an organisation “hell-bent on destroying the future of our children”, and should be rebuked, not praised, for its actions, he said, to cries of support from opposition benches. “Instead of acting like responsible educators, some members of Sadtu have, on numerous occasions, proven themselves irresponsible, unprofessional and unfit to educate South Africa's learners.”
Buthelezi also suggested that the ruling party was too close to the country's four major banks. “Another major policy mistake is maintaining the four retail bank policy and tolerating the collusion and other restraints of trade openly practised by our banks.” A lack of “real competition” meant they were not forced to take risks they did not want to take, forcing all the “risky business” onto the Industrial Development Corporation and the Development Bank of Southern Africa. “It would seem as if your government, Mr President, has a greater commitment to serving the banks than the people we represent.”
On the economy, Buthelezi said Zuma had not explained how two sectors that should be booming as a result of high international demand - agriculture and mining - were “in reverse due to government's many policy failures”. Another unspoken fact was that the latest Global Competitiveness Rankings of the World Economic Forum highlighted how corruption, wasteful expenditure and government red-tape was increasingly hindering business development, SMMEs and investment in South Africa.
Buthelezi said there was a “disconnect” between the government and the reality of everyday life in South Africa. He told Zuma his address had lacked accountability. “It lacked accountability on the crisis in health, the crisis of education and the crisis of corruption. “What you have said looks good on paper, but what you have not said can prevent the fulfilment of the best-laid plans."
Source: IoL
He said a measure of Zuma's leadership could be taken less by what the president had said than by what he had not said. “How can we embrace hope when our leadership refuses to acknowledge the many problems confronting our country, or the causes that lie at their root? Year after year, the State of the Nation address shifts, without ever addressing previous failures.” Buthelezi said it was an “unspoken fact” that corruption had resulted in the axing of two ministers - Sicelo Shiceka and Gwen Mahlangu-Nkabinde. “The national police commissioner, Mr Bheki Cele, is still suspended pending an investigation into corruption. “The Speaker of the KwaZulu-Natal legislature, Ms Peggy Nkonyeni, and MEC Mr Mike Mabuyakhulu are facing corruption charges in court,” he said.
Two of the nine provinces had “all but collapsed” and the administration of the state was “in shambles”. “Limpopo has been rendered bankrupt through corrupt activities and five of its departments have been taken over by national government.” “In the Eastern Cape, the education system has completely collapsed due to maladministration and corruption, forcing national government to intervene.”
In Gauteng, the provincial government had sought help from the National Treasury for its health department, which was on the verge of collapse. The Free State had sought help after discovering financial mismanagement and non-compliance in supply chain processes in its police roads and transport department. “How, Mr President, do we explain the contamination of public service and commercial interests? It is fatal and yet pursued relentlessly from the lowest to the highest levels of government. “Too many, and I dare say the overwhelming majority, are trying to make money on account of holding public office, being in politics or exercising public power.”
Last year, Special Investigating Unit head Willie Hofmeyr told MPs that 20 percent of South Africa's procurement budget was lost to corruption each year. “According to Transparency International's 2011 Corruption Perceptions Index, South Africa is perceived to be becoming more corrupt with each passing year.” This perception was rooted in reality. “On a scale of 0 (being highly corrupt) to 10 (being very clean), we have fallen from a ranking of 5.1 in 2007, to 4.1 in 2011. “The unspoken fact is that we are on the verge of joining the ranks of dysfunctional states, as the effects of corruption debilitate all spheres of life,” Buthelezi said.
The IFP leader, who turns 84 this year, also criticised Zuma for his support, last Thursday, of the South African Democratic Teachers' Union (Sadtu). “Mr President, you praise the trade unions, and even Sadtu, as if they should be thanked for doing less than the full measure of their destructive capabilities. “Praising the South African Democratic Teachers' Union for its diligent teachers was a step too far in placating the unions.”
The ANC-aligned union continued to act like an organisation “hell-bent on destroying the future of our children”, and should be rebuked, not praised, for its actions, he said, to cries of support from opposition benches. “Instead of acting like responsible educators, some members of Sadtu have, on numerous occasions, proven themselves irresponsible, unprofessional and unfit to educate South Africa's learners.”
Buthelezi also suggested that the ruling party was too close to the country's four major banks. “Another major policy mistake is maintaining the four retail bank policy and tolerating the collusion and other restraints of trade openly practised by our banks.” A lack of “real competition” meant they were not forced to take risks they did not want to take, forcing all the “risky business” onto the Industrial Development Corporation and the Development Bank of Southern Africa. “It would seem as if your government, Mr President, has a greater commitment to serving the banks than the people we represent.”
On the economy, Buthelezi said Zuma had not explained how two sectors that should be booming as a result of high international demand - agriculture and mining - were “in reverse due to government's many policy failures”. Another unspoken fact was that the latest Global Competitiveness Rankings of the World Economic Forum highlighted how corruption, wasteful expenditure and government red-tape was increasingly hindering business development, SMMEs and investment in South Africa.
Buthelezi said there was a “disconnect” between the government and the reality of everyday life in South Africa. He told Zuma his address had lacked accountability. “It lacked accountability on the crisis in health, the crisis of education and the crisis of corruption. “What you have said looks good on paper, but what you have not said can prevent the fulfilment of the best-laid plans."
Source: IoL
Sunday, August 7, 2011
‘Outrageous’ handshake for Ithala boss
Sipho Shabalala, the man police say facilitated a R1 million “donation” for the ANC from a businessman who got a huge state tender, has been given an almost R2 million golden handshake to leave his government job.
The Sunday Independent this week saw documents which show that Shabalala, who headed state-funded development entity Ithala, was given the severance package on the eve of his court appearance on money laundering, corruption and racketeering charges.
Opposition political parties in the provincial legislature have expressed outrage at Ithala’s payment to Shabalala of R1 900 041, in cash, on July 31.
According to a 10-page document titled Settlement Agreement and Mutual Release, the payment represents R696 572 in respect of his salary that would have been paid during the unexpired period of employment. Then there is payment of R374 650 for leave that would have accrued, plus an R870 715 ex gratia payment.
Shabalala is key among the 25 accused in the Intaka case, along with the Speaker of Parliament Peggy Nkonyeni, Economic Development MEC Mike Mabuyakhulu and Gaston Savoi, owner of Intaka, a company that won a R42 million tender from the government and in the same month paid a R1m “donation” to the ANC in KZN, via Shabalala.
Shabalala’s contract with Ithala was due to end on October 31.
Last August he was suspended when he was charged, almost a year after our sister paper, the Sunday Tribune, exposed how he solicited the R1m from Savoi and allegedly had it paid into the trust account of Durban lawyer Sandile Khuboni, also charged.
IFP MPL and the party’s KZN shadow minister of finance, Roman Liptak, said: “The real test for those politicians who have shielded Shabalala for so long and smoothed his way from one plush government job to the next is whether he will be allowed to walk into another top management position within our civil service.”
The DA’s Johann Krog said the move was aimed at buying Shabalala’s silence. He said Shabalala had been rapped over the knuckles by co-accused Mabuyakhulu for a questionable R280m school project, which merited more serious sanction.
“The DA has consistently called on Scopa and the finance committee for disciplinary action on advice of all the law-enforcing agencies. The province could have saved his salary of more than R100 000 a month for the past year, and the R2m payout,” he said.
Krog insisted that had Ithala waited for his contract to expire in October, the cost to taxpayers to end the relationship would have been much less than a “shocking” R2 million.
ACDP MPL Jo-Anne Downs said: “It’s outrageous. If they wanted to get rid of him they could have instituted internal disciplinary action, but no, they had to pay him to leave,” said Downs.
Shabalala was this week furious that details of his package were leaked to the media.
He said, “I will not be surprised to learn that the intention of those who leaked this agreement to you is to vilify me in the court of public opinion as a greedy fat cat who ‘blackmailed’ the government to give me one final ride on the proverbial gravy train before setting off to enjoy his ‘ill-gotten gains’.”
He said he had signed a two-year contract with the Ithala board in October 2009 (this was after he had hastily been moved from Treasury to Ithala in January 2009). He said there was an understanding that he would have to apply for a full-term contract when the Ithala leadership position was eventually advertised, which happened two weeks ago and for which he was asked not to apply.
“Then came the suspension by the Ithala board in August 2010 with (MEC) Mabuyakhulu an- nouncing an intention to set up a task team that would monitor the developments relating to the criminal investigations and advise the board on the impact, if any, this had on his employment relationship with Ithala,” he said.
Shabalala said he hadn’t heard anything from Ithala or Mabuyakhulu about this matter until just a few weeks before we reported that Mabuyakhulu himself was set to join Shabalala as an accused in the Intaka matter.
He said the message from Ithala, at that time, was that the company wanted to summarily terminate his employment contract, pay him out for the remainder of his contract and obtain an assurance from him that he would not apply for the job of Ithala boss.
The Sunday Independent can reveal that Ithala agreed terms with Shabalala that they “fully and forever release each other from, and agree not to sue concerning any and all claims relating or arising from Shabalala’s employment relationship with Ithala and the termination of that relationship”.
Shabalala said he told them to “go fly a kite”.
“Then came the ‘sweetened’ offer of the agreement that has now been leaked to you. My initial decision was still that I would see out the rest of my contract and retain my right to apply for a job for which I received an excellent performance review at the time of my last employment assessment.”
Asked why he had acceded and accepted the board’s offer, Shabalala said his back was against the wall and he gave an array of reasons for this. He said following the attachment and freezing of all his assets it became impossible to successfully run his businesses.
By last week, he said, the bank had frozen his personal account with his Ithala salary in and was preparing to foreclose on his entire business portfolio to recover monies owed by his RJ’s restaurant in Hillcrest that went under at the beginning of this year.
He said his children were being threatened with expulsion from school because of unpaid fees.
Shabalala said the Ithala offer that he had so disdainfully spurned happened to be exactly what his bank was demanding to hold off from auctioning all of his assets, including his home.
“I decided to accept the revised offer,” he said.
Ithala board chairman Mandla Gantsho said an amicable agreement had been reached with Shabalala. - Nathi Olifant
Source: IoL
The Sunday Independent this week saw documents which show that Shabalala, who headed state-funded development entity Ithala, was given the severance package on the eve of his court appearance on money laundering, corruption and racketeering charges.
Opposition political parties in the provincial legislature have expressed outrage at Ithala’s payment to Shabalala of R1 900 041, in cash, on July 31.
According to a 10-page document titled Settlement Agreement and Mutual Release, the payment represents R696 572 in respect of his salary that would have been paid during the unexpired period of employment. Then there is payment of R374 650 for leave that would have accrued, plus an R870 715 ex gratia payment.
Shabalala is key among the 25 accused in the Intaka case, along with the Speaker of Parliament Peggy Nkonyeni, Economic Development MEC Mike Mabuyakhulu and Gaston Savoi, owner of Intaka, a company that won a R42 million tender from the government and in the same month paid a R1m “donation” to the ANC in KZN, via Shabalala.
Shabalala’s contract with Ithala was due to end on October 31.
Last August he was suspended when he was charged, almost a year after our sister paper, the Sunday Tribune, exposed how he solicited the R1m from Savoi and allegedly had it paid into the trust account of Durban lawyer Sandile Khuboni, also charged.
IFP MPL and the party’s KZN shadow minister of finance, Roman Liptak, said: “The real test for those politicians who have shielded Shabalala for so long and smoothed his way from one plush government job to the next is whether he will be allowed to walk into another top management position within our civil service.”
The DA’s Johann Krog said the move was aimed at buying Shabalala’s silence. He said Shabalala had been rapped over the knuckles by co-accused Mabuyakhulu for a questionable R280m school project, which merited more serious sanction.
“The DA has consistently called on Scopa and the finance committee for disciplinary action on advice of all the law-enforcing agencies. The province could have saved his salary of more than R100 000 a month for the past year, and the R2m payout,” he said.
Krog insisted that had Ithala waited for his contract to expire in October, the cost to taxpayers to end the relationship would have been much less than a “shocking” R2 million.
ACDP MPL Jo-Anne Downs said: “It’s outrageous. If they wanted to get rid of him they could have instituted internal disciplinary action, but no, they had to pay him to leave,” said Downs.
Shabalala was this week furious that details of his package were leaked to the media.
He said, “I will not be surprised to learn that the intention of those who leaked this agreement to you is to vilify me in the court of public opinion as a greedy fat cat who ‘blackmailed’ the government to give me one final ride on the proverbial gravy train before setting off to enjoy his ‘ill-gotten gains’.”
He said he had signed a two-year contract with the Ithala board in October 2009 (this was after he had hastily been moved from Treasury to Ithala in January 2009). He said there was an understanding that he would have to apply for a full-term contract when the Ithala leadership position was eventually advertised, which happened two weeks ago and for which he was asked not to apply.
“Then came the suspension by the Ithala board in August 2010 with (MEC) Mabuyakhulu an- nouncing an intention to set up a task team that would monitor the developments relating to the criminal investigations and advise the board on the impact, if any, this had on his employment relationship with Ithala,” he said.
Shabalala said he hadn’t heard anything from Ithala or Mabuyakhulu about this matter until just a few weeks before we reported that Mabuyakhulu himself was set to join Shabalala as an accused in the Intaka matter.
He said the message from Ithala, at that time, was that the company wanted to summarily terminate his employment contract, pay him out for the remainder of his contract and obtain an assurance from him that he would not apply for the job of Ithala boss.
The Sunday Independent can reveal that Ithala agreed terms with Shabalala that they “fully and forever release each other from, and agree not to sue concerning any and all claims relating or arising from Shabalala’s employment relationship with Ithala and the termination of that relationship”.
Shabalala said he told them to “go fly a kite”.
“Then came the ‘sweetened’ offer of the agreement that has now been leaked to you. My initial decision was still that I would see out the rest of my contract and retain my right to apply for a job for which I received an excellent performance review at the time of my last employment assessment.”
Asked why he had acceded and accepted the board’s offer, Shabalala said his back was against the wall and he gave an array of reasons for this. He said following the attachment and freezing of all his assets it became impossible to successfully run his businesses.
By last week, he said, the bank had frozen his personal account with his Ithala salary in and was preparing to foreclose on his entire business portfolio to recover monies owed by his RJ’s restaurant in Hillcrest that went under at the beginning of this year.
He said his children were being threatened with expulsion from school because of unpaid fees.
Shabalala said the Ithala offer that he had so disdainfully spurned happened to be exactly what his bank was demanding to hold off from auctioning all of his assets, including his home.
“I decided to accept the revised offer,” he said.
Ithala board chairman Mandla Gantsho said an amicable agreement had been reached with Shabalala. - Nathi Olifant
Source: IoL
Monday, May 11, 2009
Mkhize reveals KZN Cabinet
KwaZulu-Natal's new premier Zweli Mkhize on Monday announced his new Cabinet.
Lydia Johnson would be MEC for agriculture and environmental affairs.
Wesizwe Thusi would remain MEC for arts, culture, and tourism but would have the added task of sport and recreation. Mike Mabuyakhulu was announced economic development MEC and would also serve as the acting premier. Senzo Mchunu would take over as education MEC, Ina Cronje, is the new finance MEC. Newcomer Sbongiseni Maxwell Dhlomo would take over as health MEC. Peggy Nkonyeni, is the speaker of the KZN legislature.
Maggie Govender would head the human settlement department, formerly known as housing. Willies Mchunu, the province's former speaker, would take over as the new MEC for local government and traditional affairs, while Meshack Hadebe would remain social development MEC
Source: News 24
Lydia Johnson would be MEC for agriculture and environmental affairs.
Wesizwe Thusi would remain MEC for arts, culture, and tourism but would have the added task of sport and recreation. Mike Mabuyakhulu was announced economic development MEC and would also serve as the acting premier. Senzo Mchunu would take over as education MEC, Ina Cronje, is the new finance MEC. Newcomer Sbongiseni Maxwell Dhlomo would take over as health MEC. Peggy Nkonyeni, is the speaker of the KZN legislature.
Maggie Govender would head the human settlement department, formerly known as housing. Willies Mchunu, the province's former speaker, would take over as the new MEC for local government and traditional affairs, while Meshack Hadebe would remain social development MEC
Source: News 24
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