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25 Jun, 2020
Holomisa: Allegations of millions of Rands in irregular expenditure for critical OR Tambo District Municipality water and sanitation projects Edit | Live Builder | Gutenberg
Mr TK Makwetu Auditor-General of South Africa PO Box 446 Pretoria 0001 Mr Dondo Mogajane, Director-General: National Treasury Private Bag X115 Pretoria 0001 Mr Mbulelo Tshangana Acting Director-General: National Treasury Private Bag X313 Pretoria 0001 Dear Gentlemen ALLEGATIONS OF MILLIONS OF RANDS IN IRREGULAR EXPENDITURE FOR CRITICAL OR TAMBO DISTRICT MUNICIPALITY WATER AND SANITATION PROJECTS Serious allegations of financial mismanagement and misconduct have been made against the municipal manager of the OR Tambo District Municipality that involves millions of Rands in water and sanitation projects (see attached memo). Most disconcerting of these allegations is that this R170 million were allegedly paid in advance of these water and sanitation projects and not a single jot of work has allegedly been done, whilst R134,004,193 (the bulk) of that amount was paid to Amatola without any explanation. To make matters worse, apparently the municipality’s chief financial officer’s life has been threatened because of his refusal to process illegal payment and has had to hire bodyguards to keep him safe. I would suggest that immediate investigation be done to find out what is going on with these projects. Aside from the need to have accountability in place for municipalities, one should keep in mind that hundreds of thousands of South Africans living in the villages of Mthatha, right up to Coffee Bay are adversely affected. Keeping this in mind, I would also suggest that in this particular case that these water and sanitation projects be removed from the municipality’s management and it be taken over by the national department as it is too important and affects the people of that area’s basic human rights and survival. Yours sincerely Mr Bantu Holomisa, MP UDM President
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24 Jun, 2020
Holomisa tackles implications of illegal conversion of Toyota Quantum panel vans to taxis and ambulances: allegations of a scam of major proportions
Membership (as per United Democratic Movement Women’s Organisation Constitution) 6.1.1. Membership of the Organisation shall be open to all South African Women who qualify in terms of this clause and subscribe to this Constitution and who support a multi-party democratic political system for the Republic of South Africa. 6.1.2. To this end any individual aged twenty-one (21) years and above shall be eligible for membership and be entitled to exercise all rights and honour all obligations, associated with membership, without discrimination based on race, gender, marital status, ethnic- or social origin, colour, sexual orientation, disability, religion, conscience, belief, culture and language, provided that; 6.1.2.1. She is a citizen or permanent resident of Republic South Africa; 6.1.2.2. She applies for membership in writing; 6.1.2.3. She pays the prescribed annual membership fees; 6.1.2.4. She is not a member of any other political party except the United Democratic Movement
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23 Jun, 2020
DBSA approval of Poseidon water project grant/loan: CEO Sandile Sokhela seems to be economical with the truth
Mr Enoch Godongwana Chairman of the Board of Directors Development Bank of Southern Africa PO Box 1234 Halfway House 1685 Dear Mr Godongwana DBSA APPROVAL OF POSEIDON WATER PROJECT GRANT/LOAN: CEO SANDILE SOKHELA SEEMS TO BE ECONOMICAL WITH THE TRUTH 1. I write to your good office regarding a grant/loan application submitted to the Development Bank of Southern Africa (DBSA) by Poseidon Pty Ltd (‘Poseidon’). 2. According to the information at my disposal, the DBSA had on 26 March 2020 approved funding for Poseidon to the tune of R50 million to conduct feasibility studies, for some kind of water project/s, in South Africa and other Southern African countries. Another R300 million is apparently still to be disbursed for the implementation of Poseidon’s project. 3. In terms of the DBSA’s March approval, Poseidon’s shareholding is as follows: 4. As I understand it, Harith General Partners invested in Crede Power and Infrastructure Investments (‘Crede’) via a capitalisation of R25 million over a four-year period to fund continued operational and other costs. Harith invested in Crede with an objective to capacitate an emerging fund manager that would complement the activities of Harith as a fund manager to the Pan African Infrastructure Development Funds (PAIDF I and II). To date Crede has drawn down R12 million of these funds. 5. My information shows that the DBSA Compliance Unit undertook Politically Exposed Persons (PEPs) checks on Poseidon’s shareholder and group companies and various directors were identified as PEPs by virtue of them being board members of various state-owned entities. Amongst others, the following is identified as a PEP: • Mr Tshepo Mahloele who is a non-executive director in the Crede was identified as a PEP by virtue of him being a former board member of Telkom SA in 2008; his PEP status is inactive as of 2008. Mr Mahloele is the CEO of HGP and sits on Crede’s board. 6. As you are aware, I recently wrote to the President of the Republic (letter attached for your ease of reference) to register my concern over what seems to be another attempt to loot state resources, as had occurred at the Public Investment Corporation, but this time at your organisation, using Poseidon as a vehicle. I had sourced some of my information from their websites, but I have since discovered that both Crede Capital Partners and Crede Power and Infrastructure Investments’ websites (https://credecapital.co.za/ and http://credepower.co.za/ respectively) have been discontinued/are no longer visible. Would one be wrong in surmising that someone is trying to cover their tracks? 7. In particular, during my initial search, Crede Power and Infrastructure Investments’ website proudly shared that Mr Tshepo Mahloele was its director, but I was recently confronted with a letter from Crede/Poseidon’s lawyers (also attached) categorically stating that Mr Mahloele has never been its director. What is however extremely odd is that, Mr Mahloele himself, in his written submission on 15 April 2019, to the Judicial Commission of Inquiry into allegations of impropriety at the Public Investment Corporation (‘Mpati Commission’) declared in Paragraph 3.3 that: “In addition to the positions already referred to, I also serve on the boards of NOVO Energy, Anergi, Lanseria International Airport, Rainfin, 4 Africa Exchange, Crede Power & Infrastructure Investments and Dark Fibre Africa, amongst others.” One is forced to ask whether Mr Mahloele had then lied to the Mpati Commission, or whether Mr Sandile Sokhela, Crede’s Chief Executive Officer, is lying now (or has lied in his grant/loan application to the DBSA). Someone is definitely lying, and one is worried that public entities, such as the DBSA, are doing business with people of this ilk. 8. I have instructed my attorney, Mr Eric T Mabuza, of Mabuza Attorneys, to submit a Promotion of Access to Information Act (PAIA) application to the DBSA to obtain the attending documentation of Poseidon’s DBSA loan/funding application e.g. the application itself, information on the DBSA’s due diligence, relevant minutes of DBSA meetings, contracts, and any other pertinent information. I implore you to cooperate with our PAIA application, not only because it is to the DBSA’s advantage, but also because it is in the public’s interest that the truth comes to light. 9. Given that the DBSA board has already approved Poseidon’s grant/loan it might be advisable that you immediately suspend any disbursement/s to that company until the matter is satisfactorily addressed by the President and/or the courts. I am at your disposal and look forward to engaging with you. Yours sincerely Mr Bantu Holomisa, MP UDM President Copied to: President of the Republic of South Africa, Mr Cyril Ramaphosa Minister of Finance, Mr Tito Mboweni PIC Chairperson, Dr Reuel Khoza DBSA Company Secretary, Ms Bathobile Sowazi Mabuza Attorneys, Attorney ET Mabuza
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18 Jun, 2020
Introduction of “Scoo-mbulance” in the Eastern Cape is an insult to the people
The introduction of EMS scooters by the Eastern Cape provincial government is a bad idea and is just a waste of tax-payers’ hard-earned money. It is doubtful that these scooters can properly manoeuvre rough roads and inaccessible areas, especially during adverse weather. In addition, these bikers, who are to assist in checking temperatures or sugar levels for chronic patients at home, would not necessarily be healthcare practitioners. These tasks cannot be performed by a layperson. The United Democratic Movement is astonished by part of Eastern Cape Health MEC Sindiswa Gomba’s reasoning behind the introduction of such a mode of emergency transport, which is to curb the influx of patients to clinics and healthcare facilities. The Eastern Cape government should have rather employed enough nurses and doctors at key clinics which would result in a reduction of waiting periods for patients and fewer referrals to hospitals. The big question that must be asked of the Eastern Cape government, since it claims to be the people’s government, is why it did not consult with the public on the practicality of this so-called solution. This is a joke and an insult to the people of Eastern Cape. — end– Contact: Bongani Msomi UDM Secretary General
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17 Jun, 2020
DBSA: looting of state resources by some of the same people involved in the Public Investment Corporation saga
Dear Mr President DBSA: looting of state resources by some of the same people involved in the Public Investment Corporation saga 1. I write to you with grave concern over the apparent looting of state resources by some of the very same individuals that were found to have had enhanced ability to secure easy access to Public Investment Corporation (PIC) funds. We seem to have the same style of legal corruption, but this time it is at the Development Bank of Southern Africa (DBSA). A curious feature, however, is the emergence of the involvement of the Chairperson of the Government Employees Pension Fund (GEPF). Elitist people seem to behave like locusts that hop from one source of easy funding to the next; voraciously consuming every opportunity they can generate through whatever means. Once they have depleted one source, they effortlessly jump to the next one with the same agenda – enriching themselves at any cost and patting themselves on the back for being such clever operators. 2. I believe your appointment of the Judicial Commission of Inquiry into allegations of impropriety at the PIC, under the leadership of the Honourable Justice Lex Mpati, (‘the Mpati Commission’), was, amongst other concerns, exactly to look into this kind of behaviour that now seems to rear its ugly head at the DBSA. 3. I wish to refer you to an observation made by, and a salient finding of, the Mpati Commission regarding a company called Harith. The Mpati Commission, on page 419, of its report to President Ramaphosa, directly quotes part of my submission, i.e.: “One of the most difficult tasks regarding dealing with the type of corruption that is alleged to have happened at the PIC is the sophisticated nature of the transactions. Corruption can come in two forms, legal and illegal corruption. Legal corruption occurs when the elite build a legal framework that protects corruption or manipulate existing legal framework without necessarily breaking the law.’ The Mpati Commission continued saying that: “When going through the story of Harith, these words resonate.” In paragraph 62 on page 434 the Mpati Commission also stated that: “Harith’s conduct was driven by financial reward to its employees and management, and not by returns to the GEPF. In essence, the PIC initiative, created in keeping with government vision and PIC funding was ‘privatised’ such that those PIC employees and office bearers originally appointed to establish the various Funds and companies reaped rich rewards.” Clearly there is enough motivation to have, at the very least, immediately suspended Harith’s management of any and all of PIC/GEPF funds and launched further investigation. Has government taken any action to protect the PIC/GEPF from these self-enriching individuals? If not, why not? 4. To make matters worse, this recipe for plundering state resources is seemingly being replicated at the DBSA with the very same people involved. This time, at the face of it, with a new vehicle called Poseidon Pty Ltd, of which the shareholding is as follows: On a side note, according to Crede Capital Partners’ website, their team has managed two PIC projects i.e. “Univen” (R920 million) and the “Oceans Hotel Property Development” (R600 million). The Mpati Commission’s view that where Harith was concerned, “…the approach taken provided easy access to PIC funds, influence and including an enhanced ability to secure additional investment…”, it is therefore of interest to know that another company with close ties to Harith Group Chief Executive Officer, Tshepo Mahloele, had access to PIC contracts. 5. The DBSA has recently funded Poseidon to the tune of R50 million to conduct feasibility studies, for some kind of water project/s, in South Africa and other Southern African countries. Another R300 million is apparently still to be disbursed for the implementation of Poseidon’s project. 6. The Mpati Commission also said in its report on page 436, paragraph 67, that: “The Board of the PIC should examine whether the role played by either Mr [Jabu] Moleketi and Mr Mahloele breached their fiduciary duties or the fit and proper test required of a director in terms of the Companies Act.” With this knowledge in mind, please take note that Mr Moleketi (a former DBSA board chairperson) and Mr Mahloele (former head of the DBSA’s Private Sector Investment Arm) are both directors of Poseidon. Mr President, history is repeating; Mr Moleketi had fulfilled the highest leadership roles at both the PIC and Harith. Mr Mahloele, in turn, had been internally transferred (as the Mpati Commission described it) as head of the Pan African Infrastructure Development Fund (PAIDF) to Chief Executive Officer of Harith. The following persons are also Poseidon directors: 6.1. Dr Renosi Mokate (GEPF Board Chairperson), 6.2. Ms Lungile “Zee” Cele (independent non-executive director of Harith General Partners and a former board member of Eskom Holdings SOC Ltd), 6.3. Mr Roshan Morar (former PIC Deputy Chairperson, former Chairman of the South African National Roads Agency SOC Ltd, chairman of Ithala Development Finance Corporation (Ltd) and non-executive director of Harith General Partners) and 6.4. Ms Motseoa Alix-Mary Lugemwa (former Chairperson of the Gautrain Management Agency Board and non-executive director of PAIDF). This list reads like a dream-team of politically exposed persons (PEPs) who seemingly have access to public funds. It is especially worrying to find the name of Dr Renosi Mokate on this list; a scenario where a GEPF Chairperson has access to public funding using a private conduit, after having seen what happened at the PIC, is indefensible. She must be removed as GEPF Chairperson with immediate effect. It is also worth noting that Mr Roshan Morar is named and shamed in the Mpati Commission’s report regarding the Lancaster Steinhoff, Project Sierra case study. The Commission on page 41, paragraph 98, said that: “The chair of the IC [Investment Committee] was Mr Roshan Morar, a PIC non-executive director, who signed off on the IC resolution for this investment. At the same meeting, he was also appointed as a board member to L101 representing PIC’s interests which clearly indicates a conflict of interest.” 7. It would be advisable that Treasury quickly intervenes in the DBSA’s funding of Poseidon’s water project and that it immediately freezes the payment of the first tranche of R50 million, as well as the second tranche of R300 million implementation funding, until the Mpati Commission’s findings and recommendations are addressed. If the R50 million has already been disbursed, it must also be recouped in the meantime and it might be advisable to follow the paper trail to see if the money was spent for its intended purposes. 8. Another matter that I wish to address with you is that of Ms Irene Charnley and her inclusion on the PIC’s interim board. She allegedly received R1,7 billion (in today’s terms) from the PIC for her company, Smile Telecoms Limited. I wrote to Finance Minister Tito Mboweni about this matter on 3 June 2020 and have attached the letter for your ease of reference. Since writing that letter, I have heard that the PIC has written the R1,7 billion off as a bad investment. Moreover, it has come to my attention that Ms Charnley has also knocked on the DBSA’s door for funding. She received a USD 20 million loan, which she has failed to pay back. The Al Nahla Group, with whom she is partnered, is a Saudi Arabia-based company. The situation might mean the PIC and DBSA’s monies were channelled out of South Africa on purpose and someone else is smiling to the bank, because it definitely is not South African investors. We now know of two instances where Ms Charnley dipped into public funds, where the money seems to have evaporated into thin air. On what basis would a government serious about fighting corruption dispatch a person of this quality and competence to resuscitate a key public entity such as the PIC? The consequences for her actions should not have been to be rewarded, at the very least, she should be immediately removed as a member of the PIC’s interim board. Yours sincerely Mr Bantu Holomisa, MP President of the United Democratic Movement Copied to: Minister of Finance, Mr Tito Mboweni DBSA Chairperson, Mr Enoch Godongwana PIC Chairperson, Dr Reuel Khoza
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15 Jun, 2020
Gender-based violence: back in spotlight
The United Democratic Movement Women’s Organisation (UDEMWO) is enraged that gender-based violence (GBV) is on the rise during the Covid-19 lockdown. GBV has never dissipated; we live amongst abusers, rapists, and murderers in our communities. Simply put, being a woman in South Africa is dangerous. If a GBV crime is not featured in the media, it does not get the attention it deserves. We realise that there are many dynamics that play into the combating of GBV, but the South African Police Service is not doing its part. Seeing the Minister of Police inspecting “spaza shops” at the weekend, is extremely disturbing. It’s not his job! He should leave shop inspections to qualified environmental practitioners and address the life-threatening problems women are facing. UDEMWO is also disappointed that government is so silent about the R1,1 billion that was allocated to fight GBV in September 2019. Has the money done any good to fight GBV or are the comrades in corruption at it again? How long will hashtags trend in social media… with more GBV victims’ names added every single day: Naledi Phangindawo, Tshegofatso Pule, Simbongile Mnangcotywa and Sinah Molefe to name but a recent few. Enough is enough! Issued by: Ms Thandi Nontenja UDEMWO Secretary General
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12 Jun, 2020
The entire Electoral Act needs an overhaul
Now that the Constitutional Court has ruled that the Electoral Act 73 of 1998 is in some parts inconsistent with the Constitution and has given Parliament 24 months to amend the legislation, it is a prime opportunity to give our electoral system an entire overhaul. The United Democratic Movement (UDM) has long advocated that the major deficiency in our electoral system is a lack of accountability to the electorate. The UDM argues for a move towards a mixed electoral system that draws from the strengths of both the proportional and constituency based electoral systems. Constituencies must be introduced into the proportional representation system to ensure that politicians have specific geographically defined communities they represent and to whom they are held accountable. But to our mind, the most important change necessary is to have the people directly elect their president, as is the case in many democracies across the globe. Let the president be elected by the people and be accountable to the people, instead of the around 3,000 delegates at a party congress that chooses a party president that will be foisted onto an entire nation. Issued by: Mr Bantu Holomisa, MP UDM President
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09 Jun, 2020
Schools are going to be major coronavirus transmission centres
Schools opened yesterday and the United Democratic Movement Women’s Organisation (UDEMWO) is outraged at government’s willingness to risk the lives of school pupils and teachers. It was quickly reported that Gauteng alone had 38 schools with coronavirus infections and the Western Cape had 55; which is the epicentre of this deadly enemy at the moment. Three weeks ago, UDEMWO warned the Department of Education not to open schools until it is safe. We have pleaded with Basic Education Minister Angie Motshekga to act as a parent, yet she chose not to. UDEMWO is aware of a learner at Woodhill College (Pretoria) who tested positive for Covid-19, thus endangering all the came into contact with that learner. We are also in possession of a letter from West Bank High School (East London), where a learner whose parent tested positive and the school was forced to send back home all grade 7 learners until further notice. UDEMWO calls on the Department of Basic Education and the National Coronavirus Command Council to urgently review this decision, even if it means that the current academic year must be revised. South Africa cannot afford this kind of negligence, young lives are at stake and not all immune systems can fight this disease; think of pupils in rural areas where there is no clean water and poor toilet facilities. If schooling continues, the worst is yet to come where coronavirus infections are concerned. Issued by: Ms Thandi Nontenja UDEMWO Secretary General
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