Council speaker probed over R16m skills tender
● The Beaufort West municipality council speaker is being investigated by the Hawks for his alleged role in a questionable R16m skills development tender.
Karoo Democratic Force president Noël Constable has served as mayor of Beaufort West and the district municipality. His party, mayor Gayton McKenzie’s coalition partner, pledged to “put people first”. But behind the scenes, he is implicated in a forensic investigation into alleged maladministration, fraud, corruption and malpractice over the tender, awarded several years ago.
Constable’s brother Stefanus Jooste, who was the municipal manager of the district at the time, allegedly failed to declare any association with entities involved in the tender or that his brother stood to benefit. Those were the findings of the provincial government investigation, dated October 2020, which was commissioned by Western Cape local government MEC Anton Bredell.
Investigators probed the selection of Africa Creek, run by late businessman John Snyman, to raise funds for the municipality’s skills development programme in 2014.
The report states that Snyman and Jooste allegedly colluded before the tender was advertised and awarded to Africa Creek. Using server data, investigators demonstrated that Jooste had shared tender details with Snyman and Constable, who ran a business called Klicon Consultancy.
“Mr Jooste sent confidential tender documents to Mr Snyman (and Mr Jooste’s brother, Mr Constable] and even went as far as to indicate to Mr Snyman that the tender could be modified to suit them [Africa Creek],” the report reads.
“Mr Snyman, with the full co-operation and assistance of Mr Jooste, drafted the skills development tender specifications and had modified and amended the specifications to accommodate and benefit Africa Creek before the tender was advertised. Based on the overwhelming digital evidence secured, we conclude that Africa Creek had been instrumental, with the full knowledge and co-operation of the former municipal manager Mr Jooste, to develop the specifications.”
The municipality applied for R36m in funding from the Local Government Sector Education & Training Authority (LGSETA) which ultimately approved a R16m grant for skills training. It paid the first grant of R4.4m to the municipality in 2015.
Constable did not form part of the Africa Creek professional team as noted in the tender submission, the report states.
Jooste told investigators he was unaware of a relationship between Africa Creek and Klicon Consultancy. Evidence indicated otherwise. “The server data revealed that there was numerous e-mail communication from Mr Jooste to Mr Constable and Mr Snyman, which is evidence that Mr Jooste knew of a relationship between Africa Creek and Klicon Consultancy at the time of the award of the tender to Africa Creek,” the report says.
Lance Wilson, from another service provider, Wilson & Associates, told investigators that Jooste suggested he work with Constable’s company and they signed a memorandum of understanding. Constable would “source all the students, train them and provide him ... with the attendance registers, progress reports and invoices after completing the training during a specific month”.
Wilson would then capture their details on the LGSETA database and invoice the municipality. Wilson was aggrieved at not being paid the 30% agreed amount. Investigators said the municipality did not directly appoint Constable’s company.
Wilson & Associates was paid R612,000 by the district municipality, which paid Klicon Consultancy R469,214.20 despite Wilson & Associates not being authorised to outsource the service.
“Mr Jooste had not declared his relationship with his brother Mr Constable with regards to Africa Creek and/or with Klicon Consultancy,” the report reads. “Mr Jooste knew of Klicon Consultancy and Mr Constable’s involvement in providing training on behalf of Wilson & Associates.”
Investigators recommended the municipality recover, from Jooste, R4.507m paid to Africa Creek and R612,000 paid to Wilson & Associates. “It is further recommended that
it be established by the municipality whether any of the entities registered to Mr Constable conducted business with the municipality, especially during the time his brother was [there].”
Investigators recommended the report be handed to the Hawks, the National Prosecuting Authority and Asset Forfeiture Unit.
Constable, asked for his response this week, said: “I have no comment on this at the moment.”
Jooste said: “I am not going to say anything about this. Absolutely nothing.”
Lance Wilson also declined to comment. District municipal manager Ralph Links replied: “The matter has been given to MPAC [municipal public accounts committee] ... Council is awaiting the report from MPAC.”
Bredell said: “I can confirm that both the municipality and my department have referred certain of the allegations to the Hawks for criminal investigation.
“In relation to the remaining recommendations, while further action is required from the municipality, including the recovery of unauthorised, irregular and fruitless and wasteful expenditure from the people identified in the report, my constitutional and legislative powers to ensure compliance are limited and largely centre on monitoring and oversight.”
Hawks spokesperson Zinzi Hani said the investigating officer would discuss the case with the prosecution by the end of November.
On Wednesday, Constable appeared in the Bellville specialised commercial crimes court on separate tender fraud charges related to road contracts. The matter was postponed to November 23.