The Herald (South Africa)

Trollip opens case against Mpongwana

- Michael Kimberley

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.

 ?? Picture: MICHAEL KIMBERLEY ?? TAKING IT FURTHER: DA councillor Athol Trollip with Constable Naledi Ntoto
Picture: MICHAEL KIMBERLEY TAKING IT FURTHER: DA councillor Athol Trollip with Constable Naledi Ntoto

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