Gauteng Finance MEC, Barbara Creecy must come clean about the provincial government’s money laundering scheme which involves tranches of taxpayers money being transferred to registered NGO’s – only for these funds to be siphoned off to non-accredited NGO’s.
This practice, brought to the attention of the DA by the A Re Ageng NGO, has seen the provincial government shift millions of rands through “conduit” NGO’s to organisations that are not accredited – and who may not be performing the work which they claim to be doing.
This exercise was used by the provincial government to transfer funds to NGO’s during the Esidimeni tragedy which claimed the lives of more than 100 mentally ill patients.
This practice is a violation of the Public Finance Management Act (PFMA), and needs to be investigated as a matter of priority so as to safeguard the public purse from abuse and theft.
Recently, one such “conduit payment” to the tune of R5 million was intercepted by fraudsters who used the money to make off with 40 000 litres of diesel. This R5 million was part of a R42 million tranche to be transferred via this “conduit” scheme.
The Gauteng ANC-led provincial government is often heard preaching about transparent and open governance, but time and time again, they prove themselves to be nothing more than hypocrites.
Vulnerable residents of Gauteng are placed at risk by non-accredited and non-compliant NGO’s who do not have the skills nor the capacity to provide them with the assistance they require. This is exacerbated when these NGO’s are aided and abetted by the provincial government’s underhanded tactics.
The DA will write to Finance MEC Creecy demanding that National Treasury be allowed to scrutinise the provincial governments’ practices and rule on what steps must be taken to safeguard Gauteng’s finances.
Media Enquiries
| Adriana Randall MPL |
| DA Gauteng Shadow MEC for Finance |
| 060 556 4342 |
| Warren Gwilt |
| DA Economic Cluster Manager |
| 073 601 6144 |