De lille takes DA to task over investment
PATRICIA de Lille, the leader of Good, is embroiled in a new fight with her former party, the DA.
This time around, De Lille, the former Cape Town mayor, is taking the DA to task over irregularities in a R350 million investment with a financial services institution by DA-run George Municipality in the Western Cape.
Yesterday, De Lille handed documents relating to the alleged irregularities she described as “VBS-style corruption” to the office of the Public Protector in Cape Town.
De Lille said the move she made regarding George Municipality reminded her of the steps she took in blowing the whistle on the arms deal.
“It reminds me about 20 years ago when I was an MP, I reported issues of corruption in the arms deal,” she said when briefing the media.
“That time the ANC members closed up and tried to deny the allegations. It finally led to the successful prosecution of Tony Yengeni and Schabir Shaik,” De Lille said.
The documents showed that the municipality invested R350m with the financial services institution after an initial bid process was awarded to a bank.
A forensic investigation by Schröter and Associates attorneys found several irregularities which included investments made with different banks in the name of the financial services institution instead of the municipality.
The investment was made to the financial services institution, although it was not a bank, in contravention of the Municipal Finance Management Act.
The probe also found “referral fees” were paid to a councillor’s son, in contravention of the Municipal Finance Management Act, barring commissions paid to a family member of a councillor from the municipality’s investments.
De Lille said corruption has become a national disease that has infected all levels of the state, with South Africans being tired of hearing about politicians who were getting kickbacks.
“We have seen this example in VBS money of pensioners. It emerged in a similar investment scheme in George Municipality in the Western Cape,” the former DA leader said.
De Lille claimed R400 000 was paid in kickbacks within the six months of the investment.
The report also found chief financial officer Keith Jordaan to have abused his position.
De Lille said the evidence of irregularities was reported to the provincial government.
Local Government, Environmental Affairs and Development Planning MEC Anton Bredell said De Lille had made unfounded statements devoid of fact.
“The Western Cape government prides itself on taking strong action against any allegations of corruption and acting on wrongdoing without fear or favour.”
He said the matter had been reported to the Hawks; the municipality had procured the services of a forensic firm to investigate the allegations; and disciplinary processes against the implicated municipal official had been instituted.
DA provincial leader Bonginkosi Madikizela said De Lille was desperate to get media attention. “This is an act of desperation from someone trying to score cheap political points.”
Spokesperson Chantel EdwardsKlose said the municipality was aware of the allegations and confirmed an investigation had been undertaken.
Mayor Melvin Naik confirmed the 60-day suspension of Jordaan had expired, and he would remain suspended while investigations went on.