Trollip opens case against Mpongwana
Nelson Mandela Bay acting city manager Nobuntu Mpongwana misled the National Treasury when she vowed to prevent any further unauthorised, irregular or fruitless and wasteful expenditure, according to DA councillor Athol Trollip.
He opened a criminal case against Mpongwana and housing delivery director Mvuleni Mapu at the Humewood police station on Wednesday, alleging that the stalling of IPTS cases in the Port Elizabeth High Court had resulted in a waste of money.
Trollip referred to a letter written by Mpongwana to the National Treasury on October 30 where she vowed to stamp out any further unauthorised, irregular or fruitless and wasteful expenditure.
But Trollip said weeks earlier she was cautioned by municipal law firm Gray Moodliar that holding any of the civil cases in abeyance would result in fruitless and wasteful expenditure.
Gray Moodliar was instructed by Mapu, during his threeday stint as acting city manager, to postpone any cases coming up in court with the trial against Erastyle meant to start in two weeks’ time in October.
The municipality is suing Erastyle — owned by businessman Fareed Fakir — for about R8m, claiming the payment made to the company for the bus system’s marketing campaign was irregular and unlawful as no tender processes had been followed.
The municipality is also going after five other companies — Access Facilities and Leisure Management, Afrisec Strategic Solutions, Heerkos Projects, Le Roux Inc and Distinctive Trading — in the hopes of recovering millions of rand it believes was plundered by the firms from the budget meant to develop the city’s bus system.
Mapu wrote that if a postponement was done on short notice, Gray Moodliar could charge NMBM for any costs.
Mpongwana later confirmed to Gray Moodliar that the cases be held in abeyance.
“She records that she will investigate fruitless and wasteful expenditure in circumstances where she was cautioned that the holding in abeyance of matters and postponements will result in such expenditure being incurred,” Trollip said.
“The statement she makes to the National Treasury is patently and deliberately false and misleading as she was aware that both she and Mapu had taken decision to hold in abeyance all the IPTS matters from proceeding until further notice and to render the municipality liable for costs.
“Her letter was accordingly intended to mislead the National Treasury into believing that the IPTS legal claims were proceeding.”
He said the IPTS cases had since stalled due to Mpongwana and Mapu’s decision.
“The effect of these instructions to hold matters in abeyance and/or obtain postponements ... continues to result in the municipality incurring fruitless and wasteful expenditure,” Trollip said.
He said the decision breached the Local Government Municipal Systems Act which states that a city manager is guilty of an offence if they fail to take all reasonable steps to prevent unauthorised, irregular or wasteful expenditure.
“Mpongwana herself is the seventh defendant in the Afrisec Strategic Solutions [case] where the municipality has issued summons against her for R34m for breaching her fiduciary duty to the municipality.
“Mpongwana’s instruction in her capacity as acting city manager, that the Afrisec matter must be held in abeyance, constitutes a defendant, purporting to act on behalf of the plaintiff municipality, and issuing instruction to the plaintiff’s attorney that it must not proceed against her.
“This is unlawful.”
He said Mpongwana and Mapu had committed a criminal offence by allegedly obstructing the course of justice.
Mapu said Trollip should have contacted him to explain the rationale behind his letter.
“I never said the cases must be stopped forever,” he said.
“I issued that letter so we could look at the budget to ensure we had the finances.
“We can’t just commit the municipality to any expenditure without having the necessary budget.
“If that it is criminal to protect the finances of the municipality, then I don’t know.”
Mpongwana declined to comment.