MANDELA FUNERAL: BCM CFO FOUND GUILTY

BCM investigation finds Pillay guilty of illegally authorising R10m

Suspended Buffalo City Metro CFO Vincent Pillay faces the axe after an internal disciplinary hearing found him guilty of illegally authorising payment of R10m for Nelson Mandela’s memorial services in 2013.

He was found guilty on two charges of financial misconduct for his handling of a R10m payment to Victory Ticket, three days before Mandela’s funeral.

While the metro conducted its own investigation, a criminal case of fraud and theft is before the court.

The hearing followed a Dispatch exposé in 2014, a few months after BCM gave the goahead to then-mayor Zukiswa Faku and former municipal manager Andile Fani to source funding to transport hundreds of mourners to Mandela memorial services.

The internal disciplinary hearing against Pillay was instituted in April, after the ANC provincial executive committee gave an instruction that all those implicated in public protector Busisiwe Mkhwebane’s report on the misuse of millions earmarked for Madiba’s funeral be charged and internal investigations be followed by the affected councils.

Pillay, BCM head of supply chain Thembelani Sali and the head of special programmes Ondela Mahlangu were all suspended.

The Dispatch has seen a copy of the 28-page judgment signed by the chairman of the hearing, L Vermaak. Vermaak states Pillay was found guilty of “financial misconduct, in that you grossly negligently breached your fiduciary duty to your employer BCM, failed to perform the functions of your office with due care, diligence, good faith and honesty and failed to act in the best interest of the municipality”.

“Pillay caused the supply chain management unit of the municipality to follow procurement processes other than in accordance with the requirements of the SCM processes”.

Victory Ticket is owned by East London businessman Mzwandile Sokwali, who has already been found guilty of fraud for his involvement in the swindling of more than R5.9m of the R10m in question.

He entered into a plea bargain with the state and his sentence was suspended.

His co-accused include ANC regional leader Pumlani Mkolo, BCM councillors Sindiswa Gomba, Luleka Simon-Ndzele and former mayor Zukiswa Ncitha, and local business owners Dean Fanoe and Viwe Vazi.

In his ruling, Vermaak singles out Mkolo, who was the ANC regional secretary at the time, and his then deputy Mkhawuleli Maleki for instructing Pillay to pay Victory Ticket.

Maleki said: “I am taken aback by this claim. I have not seen the judgment. I have not given Pillay an instruction at any given time.”

Pillay was also found guilty of the second charge of financial misconduct in that he “complied with the instructions of the ANC to make available R10m” for purposes of funding transportation for the ANC’s memorial services programme.

“Pillay acted in the interest of the ANC and without regards to the interests of the municipality,” Vermaak stated.

Pillay and his defence team have been given until Tuesday October 30 2018 to submit their “mitigation and aggravating circumstances”.

Speaking to the Dispatch on Sunday, Pillay said he was not aware of the ruling.

He said he would appeal the outcome and that he believed he was being made a scapegoat.