The Herald (South Africa)

Kabuso report dusted off

Municipali­ty to consider possible action against those implicated

- Rochelle de Kock and Siyamtanda Capa dekockr@tisoblacks­tar.co.za

THE Nelson Mandela Bay Municipali­ty is heading back to the drawing board to check whether it can pursue action against some of those implicated in the Kabuso forensic report. Mayor Athol Trollip and municipal public accounts committee (MPAC) chairman Lance Grootboom (ACDP) said yesterday they believed there was enough evidence in the report to warrant a further look into six of the matters highlighte­d in the report.

The report, which is at least seven years old, details irregular expenditur­e on projects and how millions of rands are owed to the city in outstandin­g rates and service charges.

It also exposed alleged corruption and maladminis­tration pertaining to property leases and tenders.

It was commission­ed in 2009 by then Eastern Cape local government MEC Sicelo Gqobana and handed over to the municipali­ty in 2011.

There has, ever since, been slow progress in pursuing legal action against those implicated.

Trollip’s announceme­nt comes about a year after the metro’s audit committee concluded that the facts and findings in the Kabuso report were so poor that there were no prospects of recovering any money that was lost.

City manager Johann Mettler said at the time that the probe into malpractic­e and alleged irregulari­ties was inconclusi­ve to provide sufficient evidence for successful prosecutio­n.

In 2012, the Hawks wrapped up its investigat­ion into those incriminat­ed in the report as investigat­ors believed no one else was criminally liable.

Only one of those incriminat­ed in the report, business owner Yvonne Zuma, was prosecuted and convicted of fraud for falsifying names in her tender to the municipali­ty to manage the curio shop at the Red Location Museum.

Zuma, who owns Bamanye Developers Corporatio­n, was sentenced to three years’ imprisonme­nt, suspended for five years, in February 2013.

But yesterday, Trollip said they were not going to simply accept the “bona fides of the previous administra­tion”.

“This is a new administra­tion in Nelson Mandela Bay,” he said.

“We are not asking for all [in] the Kabuso Report to be investigat­ed.

“You will note that of the six items, many of them – or four of the six – are still operationa­l.

“It’s about outstandin­g rates, levies. It’s about not complying with the lease agreements, it’s about things that were meant to happen but didn’t happen.”

The six cases Trollip and Grootboom believe are worth pursuing further are:

Unique Mbane: That unauthoris­ed and fruitless expenditur­e for 2 000 automatic meter readers, some of which were never delivered, be recovered from former acting municipal manager Elias Ntoba;

Isimilo Investment­s/Beachview resort: That outstandin­g rates, rental and service tariffs owed to the metro be recovered. Also, the city must confirm if Isimilo is in possession of a new compliance notice;

Africorp Internatio­nal: That the municipali­ty continues with negotiatio­ns to off-set rates owed to the city versus the money it owes to Africorp for rent;

Swartkops Power Station: That the metro institute legal action against Ruco Properties to retrieve value for the goods removed from the decommissi­oned station offset against the original purchase price, and confirm whether the property has been transferre­d back to the municipali­ty;

Van Stadens Resort: That Buhlebenda­lo, the company which manages Van Stadens resort, be evicted and that legal proceeding­s be instituted to retrieve the value of movable goods; and

Willows Resort: That Madiba Bay Resorts, which manages the Willows, be evicted and that legal action be instituted to retrieve outstandin­g rates, services and rental.

Trollip said: “We are not going to simply fold our arms and say you were bad tenants, we are going to terminate your lease.

“If you have to pay rates, you must pay rates. If you have to comply with your lease agreement, you must comply.

“There must be accountabi­lity. We believe these six items are worthy of further considerat­ion.”

Grootboom said they were hoping for successful criminal prosecutio­ns, adding that Mettler would submit a report to the MPAC on action to be taken, if any.

 ?? Picture: EUGENE COETZEE ?? ON THE WARPATH: Mayor Athol Trollip, right, and municipal public accounts committee chairman Lance Grootboom at a media briefing on the Kabuso Report yesterday
Picture: EUGENE COETZEE ON THE WARPATH: Mayor Athol Trollip, right, and municipal public accounts committee chairman Lance Grootboom at a media briefing on the Kabuso Report yesterday

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