Community loses royalty billions

MISMANAGED: ONLY TRADITIONAL LEADERS BENEFIT

‘We are looking at the maladministration and mismanagement of funds.’

Civil society organisations and community members from the Bakgatla ba Kgafela community in Moruleng outside Rustenburg, North West, met yesterday to discuss the findings of a commission of inquiry into the chieftaincy and financial corruption in the area.

The commission, chaired by senior counsel Sesi Baloyi, was set up to examine a number of transactions undertaken between Chief Nyalala Pilane and Anglo Platinum and Pallinghurst Resources on behalf of the people living in 32 poor villages.

After a four-year investigation, the commission found the community did not benefit from black economic empowerment deals, or agreements entered into in the community’s name by Pilane and certain members of the Bakgatla ba Kgafela traditional council.

It is alleged that the Bakgatla ba Kgafela resources and wealth were used to enrich offshore companies and a few selected local individuals, including the chief.

Corruption Watch has been part of a research study into the governance framework and administration of mining royalties and is creating advocacy initiatives to highlight the vulnerabilities in the mining sector and strengthen accountability.

The Baloyi report focuses on the concerning levels of maladministration and mismanagement of funds, resulting in members of the community experiencing a systematic cycle of poverty.

The commission was established after numerous community reports detailed allegations of commercial transactions related to the community’s mineral resources and concern that under the traditional leadership of Pilane, there was mismanagement of community monies.

Mashudu Masutha, a legal researcher at Corruption Watch, said: “The purpose of the dialogue was to speak about the Baloyi Commission of Inquiry report, to reflect on the findings of the report, to see what victories or lessons could be learnt from it – not only for the Bakgatla ba Kgafela community, but for other mining communities who face a

is believed to have been siphoned out of the community

similar problem.”

Masutha said the dialogue session was part of Corruption Watch’s mining royalties project, which looked at traditional governance in mining communities, specifically with regard to the management of money.

“We were specifically looking at the maladministration and mismanagement of community funds. There is already an estimated R5 billion that has been siphoned out of this community and this is just one,” said

Masutha.

She said one of the recommendations was the appointment of an administrator to ensure appointments were done in a fair and transparent manner.

Victor Modimakwane from the Sedibelo anticorruption organisation said they were interested in how the money disappeared.

“Someone needs to be held accountable at the end of the day,” he said.

Someone needs to be held accountable.