With four resignations, vacancies on SABC board must be filled urgently

Please find attached an English soundbite by Phumzile Van Damme MP.

The DA notes that President Cyril Ramaphosa has accepted the resignations of four South African Broadcasting Corporation (SABC) members, Khanyisile Kweyama, John Mattison, Krish Naidoo and now Mathatha Tsedu.

The resignation of these board members, all who were part of the SABC’s interim board and instrumental in steering the SABC to calm waters following the disastrous Hlaudi Motsoeneng era is highly unfortunate.

It would have been desirable for all board members to stay on and work together to fix the dire financial crisis facing the SABC which has now been exacerbated by the illegal interference of the new Minister of Communications, Stella Ndabeni-Abrahams.

We are aware of the interim board members’ implication in the Special Investigative Unit (SIU) investigation into the awarding of a security tender, which was found to have been awarded irregularly. There was financial misconduct in contravention of the PFMA and we await the final report anticipated to be released in March 2019.

The Chairperson of the Portfolio Committee on Communications, Prof Hlengiwe Mkhize must now approve the immediate advertising of the four new vacancies in order to allow Parliament to fill what are now eight vacancies on the SABC board with urgency.

The filling of four vacancies that existed due to the resignations of Rachel Kalidass, Victor Rambau, Febbe Potgieter-Gqubule and the withdrawal of Nomvuyiso Batyi has been advertised. Another advertisement must now be issued with the same deadlines of nominations closing on 21 December 2018, so that the committee can interview for all eight vacancies in January 2019.

The DA will write to the Chairperson to request that this happen as a matter of urgency in order to allow for the SABC board to continue with its work.

PRASA Board members paid R3 million incorrectly but no plan to pay it back

A reply to a DA Parliamentary question has revealed that during the 2016/17 financial year, eight PRASA board members incorrectly received a total of R3 million that they were not entitled to. The reply also confirmed that no plan had been made to ensure the millions are paid back to the embattled entity.

This violates Section 38 (c) i-iii of the PFMA of the general responsibilities of the accounting authority (in this case the PRASA board) which in terms of Section 86 justifies criminal proceedings to be instituted.

The breakdown of the incorrect remuneration is as follows:

(a)(i) During 2015/16 no remuneration monies were incorrectly paid.

During 2016/17 the following Board members had remuneration monies incorrectly paid to them:

(a)

Employee No.

(b)(i) & (iii)

2016/17

(c)(i)

Amount paid back

(c)(ii)

Amount Still owed

(d)

Payment Arrangement

(e) & (f)

Interest paid

1. R211 420. 92 Not paid back R211 420. 92 None None
2. R358 532. 19 Not paid back R358 532. 19 None None
3. R245 797. 44 Not paid back R245 797. 44 None None
4. R315 028. 27 Not paid back R236 271. 20 None None
5. R324 036. 04 Not paid back R324 036. 04 None None
6. R350 909. 18 Not paid back R350 909. 18 None None
7. R291 941. 62 Not paid back R291 941. 62 None None
8. R 1 077 322. 12 R 1 077 322. 12 None None

This is especially disturbing considering that the entity’s annual report recently released by the Auditor General found R1 billion in fruitless and wasteful expenditure. PRASA’s net loss for the previous financial year was R925 million.

It is clear that PRASA is in shambles and is plagued by scandal after scandal. The DA will formally write to the Minister of Transport, Blade Nzimande, asking why he has not done anything about this situation. It’s clear that these board members are blatantly ignoring their responsibilities and the Minister is protecting them by not acting.

The DA demands that the Minister explain how more than R3 million was wasted on the over payment of PRASA board members’ remuneration and why no plan was made to ensure that this money is repaid.

Does Fraser have a new President to keep?

The DA is studying President Cyril Ramaphosa’s answering affidavit to our application to set aside the appointment of former State Security Agency (SSA) boss, Arthur Fraser, as National Commissioner of the Department of Correctional Services.

Ramaphosa took the decision to transfer Fraser in April 2018 after the Inspector-General of Intelligence (IGI), Dr Setlhomamaru Dintwe, revealed that Fraser had revoked his security clearance. This amid an investigation, requested by the DA, into Fraser’s involvement with the Principle Agent Network (PAN) programme which he, as the then-Deputy Director-General of the National Intelligence Agency (NIA), initiated and oversaw from 2007 to 2009.

Ramaphosa’s defence of Fraser is bizarre, and his contention that the allegations against Fraser “had previously been investigated and finalised by [Dintwe’s] predecessor” is disingenuous. An NIA forensic investigation into Fraser and others’ activities had found, inter alia, that criminal offences in terms of the Prevention and Combating of Corrupt Activities Act (Act 12 of 2004) and the Public Finance Management Act (PFMA) (Act 1 of 1999) had been committed.

The question that still needs to be answered is why no criminal charges were brought against Fraser and Co. and how he was reappointed to head the SSA in the first place.

It begs the question: what does Fraser have on Ramaphosa that makes him so afraid to act against him?

Ramaphosa is also being disingenuous by claiming the IGI’s investigation was prompted by the publishing of Jacques Pauw’s The President’s Keepers. The DA had lodged a formal complaint against Fraser on 18 May 2017 – Pauw’s book was released five months later, in October.

The president defends his decision to move Fraser to another senior government post, instead of suspending him, by stating that “[t]here were no new allegations of wrongdoing against [Fraser]” and that the “Inspector-General’s investigation was a re-visiting of old allegations.”

This is a feeble defence, considering the seriousness of the allegations against Fraser and the seeming cover-up which saw the recommendations of the NIA forensic investigation ignored, despite being presented to the then-ministers of State Security and Justice and Constitutional Development, Siyabonga Cwele and Jeff Radebe, respectively.

The DA cried foul of Fraser the moment he was reappointed to the SSA and will continue to challenge Ramaphosa’s irrational, unconstitutional and unlawful decision to move him to Correctional Services. We consider the matter so serious that we have taken Fraser’s appointment on review in the Gauteng Division of the High Court where we will continue to challenge its constitutionality.

Fraser should be a tenant at one of South Africa’s correctional facilities, not heading the Department.

PRASA Board members must be held to account for bringing rail services to its knees

The below statement follows the laying of charges of fraud and corruption against PRASA Board by the DA Shadow Minister of Transport, Manny de Freitas MP, and the DA Shadow Minister of Police, Zakhele Mbhele MP.

Please find attached an English soundbite by Mr De Freitas and in IsiZulu by Mr Mbhele.

View pictures here, here, and here.

Today, the Democratic Alliance laid charges of maladministration, fraud and corruption against Passenger Rail Agency of South Africa’s board (PRASA) in terms of the Section 50, 51 and 55 of the Public Finance Management Act (PFMA) and Section 34 the Prevention and Combatting of Corrupt Activities Act (PRECCA).

The charges are based on a draft Auditor-General report, leaked to the DA, which details shocking financial mismanagement and possible breaches of the PFMA and PRECCA at PRASA.

PRASA has failed to table last year’s 2016/17 Annual Report which is now 318 Days overdue and this report in the DA’s possession shows why they have been reluctant to do so. The report revealed that:

  • PRASA systems are inadequate to identify irregular and fruitless and wasteful expenditure;
  • Tender irregularities continue, and tenders do not comply with respective laws, regulations and are not transparent. All tenders audited by the AG had irregularities related to the method of selection of a service provider and all the tenders had questionable bid processes; and
  • There are major issues with remuneration of PRASA employees. From the report, it is clear that some executives received remuneration illegally or incorrectly.

The DA hopes the South African Police Services (SAPS) will prioritise these charges to ensure that all those responsible for our failing railway system are investigated and prosecuted to the fullest extent of the law.

These board members presided over a complete collapse in governance at the entity which has affected quality of services and efficient running of the public transport system.

With the ever-increasing fuel prices, trains remain the cheapest mode of transport for South Africans and it’s vital that the backbone of South Africa’s public transport network gets back on track.

The DA has a rail plan that will create a safe and well-managed railway system which put commuters first and will ensure job security. The plan is based on four aspects:

  1. Stabilising and modernising the current rail system –  Focus on upgrading the current signal system to phase out the manual signal to prevent further crashes and derailment and re-establish a dedicated rail police unit to provide security on our rail system.
  2. Merge Transnet and PRASA under the Department of Transport – All rail-related passenger and freight services should become the direct responsibility of the Minister of Transport, to streamline decision making and improve planning and integration.
  3. Ceding control of Metrorail services to Metros – Metropolitan governments should take over Metrorail functions gradually which will ensure integrated public transportation systems and better governance.
  4. Diversifying Ownership – While the state should retain ownership of the infrastructure, the DA calls for the gradual privatisation of some railway operations. This will increase competition and choice for transportation in the rail sector.

The DA is committed to freeing South Africans from the ANC’s broken promises and continued looting. Commuters must be provided with quality services they rightly deserve so that they are able to keep and look for jobs.

In 2019, South Africans have the choice to vote in a national government which puts the people first, speeds up the delivery of services and cuts corruption.

Vrede Dairy Farm: ANC corruption being protected by the Public Protector

The Public Protector’s Answering Affidavit to the DA’s legal challenge to her report on the Vrede Dairy Farm is attached here. The DA’s Founding Affidavit and Notice of Motion can be found here and here.

The Public Protector, Busisiwe Mkhwebane’s Answering Affidavit to the DA’s legal challenge to her Vrede Dairy Farm report is an embarrassing cop-out as it attempts to explain the failure to hold to account the political principals who designed and orchestrated this R220 milion Gupta-linked scandal. It appears from this 79-page affidavit that she is hellbent on protecting ANC corruption, showing she is unfit to hold the Office of the Public Protector.

In the Answering Affidavit, Mkhwebane blames her predecessor, Adv Thuli Madonsela; her office’s current lack of budget; and the limits of her official mandate and jurisdiction as excuses for her report ignoring the roles played by Ace Magashule and Mosebenzi Zwane. The DA’s initial complaint contained a submission that the project originated in the Office of then Premier of the Free State, Ace Magashule, and then MEC for Agriculture, Mosebenzi Zwane – and therefore these political actors ought to be investigated.

It is highly suspicious that after an almost four-year investigation into the Vrede Dairy Project, Adv. Mkhwebane found only that the Free State Department of Agriculture contravened the prescripts of the Public Finance Management Act (PFMA). There is no effort shown to probe the true corruption at the heart of the Vrede scam, and to hold those responsible to account.

Furthermore, the affidavit claims that the media reports implicating Magashule and Zwane with the Guptas preceded her appointment, or came to light after the investigation was already completed. This argument is flawed, as the position of Public Protector is cited as respondent and not the individual personally, on her own version. Accordingly, such considerations are immaterial, as the position of Public Protector was filled at all times and remains responsible, regardless of the person who was in that position.

As the reports stands, Ace Magashule and Mosebenzi Zwane get off unscathed in what was a scheme that they conceived, planned and executed – along with the Guptas – to defraud the public of hundreds of millions of rands. The remedial action recommended in the report proposes to discipline the implicated officials but she makes no recommendations whatsoever on the action to be taken against the political principals – one of which is now the Secretary-General of the ANC.

When I accompanied the intended beneficiaries of this project to a meeting with the Public Protector at her offices in December last year, she promised to act in good faith and to conduct a comprehensive investigation. It appears that this promise has been reneged on.

The intended beneficiaries of the Vrede Dairy Farm project deserve nothing less than full political accountability and swift criminal prosecutions of the corrupt thieves behind this project. The Public Protector’s report does not come close to offering this.

That is why the DA has taken the report on legal review, and the matter is set to be heard on 23 and 24 October 2018. We have full confidence in the courts to come to a finding that brings justice to the people of Vrede.

DA to add Transnet ‘Traingate’ scandal report to criminal charges against Molefe & Gupta associates

The latest forensic report by law firm Mncedisi Ndlovu & Sedumedi (MNS) attorneys on the R15,4 billion price inflation on Transnet locomotives procurement will form part of the affidavit of the criminal charges that the DA will be laying against former CEO Brian Molefe, former Chief Financial Officer Anoj Singh, board sub-committee Chairperson Iqbal Sharma and Gupta lieutenant Salim Essa.

The MNS report recommends that corruption charges be brought against the four individuals and steps taken by Transnet to recover the money lost from Molefe.

This latest report follows a Werkmans Attorney’s report which found out that Brian Molefe, Gupta associates and current Transnet CEO, Siyabonga Gama, may have breached the Public Finance Management Act (PFMA) for “…serious breaches of statutes, regulations, corporate governance and unlawful conduct in relation to the transaction – involving billions of rand”.

That two reports from different law firms have reached the same conclusion on the magnitude of the criminal enterprise that Molefe and the Gupta associates presided over for the benefit Gupta-linked firms, provides enough evidence for a criminal investigation to be instituted without delay.

Transnet is a vital cog in South Africa’s economic infrastructure and the financial pilferage it endured at the hands of corrupt ANC deployees like Molefe may have cost thousands of jobs that could have been created had the money been put to good use.

It is therefore essential that, while criminal charges are pursued, the current Transnet Board must act on the MNS recommendation to recover money lost by Molefe through his deliberate acts of economic espionage.

Failure to do so will render the entire Board complicit in violating good corporate governance practices which enjoins them to act against any perceived threats to Transnet’s financial health.

President Ramaphosa must understand the collapse in governance has not only taken place in ANC run provinces but had also become pervasive in State Owned Enterprises (SOEs). Taking stern action against Gupta lieutenants is an essential first step in fixing the culture of corruption in SOEs.

Public Protector’s Vrede Dairy Report is a whitewash of corruption

The DA notes the release this morning of the Public Protector’s report into the corruption in the Vrede Dairy Farm project. Our legal team have been tasked to consider the report and I will provide further details during my briefing on the outcomes of Federal Council on Sunday.

However, it is frankly mind boggling how it could be that after an almost four year investigation into the Vrede Dairy Project, Public Protector Adv. Busisiwe Mkhwebane found only that the Free State Department of Agriculture contravened the prescripts of the Public Finance Management Act (PFMA).

The Public Protector also failed to send a copy of the report to the DA as the original complainant, as per past practice.

There has been a large amount of evidence of grand corruption and money laundering relating to Vrede that is already in the public domain. Yet none of this seems to have been investigated by the Public Protector.  When I took the intended beneficiaries to meet with the Public Protector in December last year, she promised to act in good faith and to conduct a comprehensive investigation.

It is therefore unconscionable that her report is nothing more than a whitewash of a grand project of corruption and looting.

Neither the people of Vrede or the Free State are any closer to seeing justice for being robbed of R220 million to line the pockets of the Guptas.

The Public Protector chose to ignore our submission that the project originated in the Office of the Premier of the Free State, Ace Mageshule, and made no mention of the involvement of the Guptas and how they benefitted from this project. This stinks of a complete whitewash.

Similarly, the remedial action recommended in the report proposes to discipline the implicated officials but she makes no recommendations whatsoever on the action to be taken against the political principals who orchestrated this evil project – Mosebenzi Zwane and Ace Magashule.

We will be studying this inadequate whitewash of a report in detail.

For the DA, this matter does not end here. We have and will always stand with ordinary people who continue to be let down by the state.

The intended beneficiaries of the Vrede Dairy Project deserve nothing less than full political accountability and swift criminal prosecutions of the corrupt thieves behind this project.

The Public Protector’s report does not come close to offering this.

Public Protector's Vrede Dairy Report is a whitewash of corruption

The DA notes the release this morning of the Public Protector’s report into the corruption in the Vrede Dairy Farm project. Our legal team have been tasked to consider the report and I will provide further details during my briefing on the outcomes of Federal Council on Sunday.
However, it is frankly mind boggling how it could be that after an almost four year investigation into the Vrede Dairy Project, Public Protector Adv. Busisiwe Mkhwebane found only that the Free State Department of Agriculture contravened the prescripts of the Public Finance Management Act (PFMA).
The Public Protector also failed to send a copy of the report to the DA as the original complainant, as per past practice.
There has been a large amount of evidence of grand corruption and money laundering relating to Vrede that is already in the public domain. Yet none of this seems to have been investigated by the Public Protector.  When I took the intended beneficiaries to meet with the Public Protector in December last year, she promised to act in good faith and to conduct a comprehensive investigation.
It is therefore unconscionable that her report is nothing more than a whitewash of a grand project of corruption and looting.
Neither the people of Vrede or the Free State are any closer to seeing justice for being robbed of R220 million to line the pockets of the Guptas.
The Public Protector chose to ignore our submission that the project originated in the Office of the Premier of the Free State, Ace Mageshule, and made no mention of the involvement of the Guptas and how they benefitted from this project. This stinks of a complete whitewash.
Similarly, the remedial action recommended in the report proposes to discipline the implicated officials but she makes no recommendations whatsoever on the action to be taken against the political principals who orchestrated this evil project – Mosebenzi Zwane and Ace Magashule.
We will be studying this inadequate whitewash of a report in detail.
For the DA, this matter does not end here. We have and will always stand with ordinary people who continue to be let down by the state.
The intended beneficiaries of the Vrede Dairy Project deserve nothing less than full political accountability and swift criminal prosecutions of the corrupt thieves behind this project.
The Public Protector’s report does not come close to offering this.

The Hawks must do what Lynne Brown has failed to do and hold Koko accountable

Today the Democratic Alliance filed criminal charges against the newly reinstated Eskom CEO, Matshela Koko.
Follow the sham of a disciplinary hearing, clearing Koko of all charges relating to misconduct, we have laid charges in terms of the Public Finance Management Finance Act (PFMA) as we believe Koko may have used his position at Eskom to improperly benefit his step-daughter’s company and her, which, if true, is a violation of the PFMA.
Earlier this year it came to light that Koko allegedly awarded lucrative Eskom contracts, worth R1 billion, to Impulse International, a company linked to his stepdaughter. He was also apparently involved in approving an R650 million loan from Eskom to Gupta-linked Tegeta, in order to ensure that the Guptas purchased Optimum.
Since Eskom and the Minister of Public Enterprises, Lynne Brown, are incapable of holding the seemingly captured and heavily implicated Koko to account, it is up to the Hawks to investigate the matter and to take action should the investigation find evidence of wrongdoing.

DA lays charges against Sifiso Buthelelezi and Lucky Montana over alleged corruption at PRASA

The Democratic Alliance (DA) has today filed criminal charges at the Cape Town Police station against Deputy Minister of Finance, Sfiso Buthelezi, the former chair of the PRASA board and former PRASA CEO Lucky Montana.
This relates to findings contained in the “leaked version” of forensic reports commissioned by National Treasury into 193 contracts PRASA into between 2012 and 2016.
The findings, read together with 2015 Public Protector’s “Derailed” report, detail instances of possible offences in terms of the Prevention and Combatting of Corrupt Activities Act (PACCA), Public Finance Management Act (PFMA) and Supply Chain Management Rules.
In view of the overwhelming evidence revealed in the Treasury reports, Buthelezi and Montana need to account for corruption that took place under their watch. South Africans need urgent answers on why no one has been held accountable when there is clear evidence of gross abuse of taxpayer funds.
It is unfair that millions of people are made to endure shockingly bad service from Metrorail while the Minister and PRASA dodge accountability.
Our law enforcement agencies cannot afford to continue turning a blind eye to mounting evidence of corruption by the then PRASA board and executives.
The DA will monitor the SAPS investigation to ensure that those responsible for stealing from the public purse are held accountable.