Allegations of ghost companies, money extortion and underquaiified staff countered with claims of racism
A forensic investigation report into irregularities within Bitou Municipality, which saw the light last week. has caused a stir among municipal officials and politicians – YOLANDE STANDER reports
Bitou Democratic Alliance PR councillor Bill Nel said the report conducted under the auspices of the Western Cape government which was served on the municipality early in December, revealed several alleged irregularities
These included details of an alleged money laundering scheme conducted from mayor Peter Lobeses office “to siphon vast sums of money from the municipal coffers under the guise of Grants in Aide to non-government organisations involved in community work among the poor and needy”.
Nel said another aspect that was uncovered included alleged “ghost companies” that performed “no actual services”.
Nel added that the report further found there were instances of alleged extortion of money in the form of donations under false pretences from business owners used to treat fellow mayoral and senior administrative staff members to regular free lunches “accompanied by-copious amounts of liquor”.
“Restaurant owners who rent municipal premises were intimidated to the point where bills exceeded R100.000 and were eventually settled by the municipality with ratepayers’ money,” Nel said the report revealed.
Another concern highlighted, according to Nel was that most members of the mayor’s political office
stall” was allegedly under-qualified for their positions.
“Some were even without secondary school education. Most of these appointees were selected without following the prescribed recruitment procedures.
“Another startling fact uncovered by the forensic investigators is that many of the ANC and AUF politicians, as well as senior stall’ members like the municipal manager [at the time of the investigation] and CFO, did not declare their personal business interests as prescribed by law.
“In this regard, the mayor himself did not declare his personal interest in the funeral business.
“The DA hopes that recommendations, including criminal charges and disciplinary actions, will be followed through. The problem, however, is that the speaker and municipal manager, who by law must spearhead these actions, are implicated in the report.
“We will continue to keep a close eye on this matter and will not allow the AUF and ANC to disregard these very serious allegations.”
Lobese has, however, hit back, saying that NeFs statements were a desperate attempt to tarnish the image of the mayor and that of the Bitou council and administration to sustain “the racist approach that when a black person enters the office of power… whatever action is taken can only be motivated by corruption”.
He said the report had been received by the municipality and had been properly processed in terms of the prescribed legislation, and that council adopted a “rules-based process to implement its recommendations”.
“The investigation covers a period of three years and was concluded in March 2019, but was curiously brought to the attention of the municipality nine months later, and as a result thereof many of its recommendations have in fact become redundant.”
He added the main allegations made against the director of corporate services had been dealt with and she had since been disciplined and dismissed.
“The allegations against the persons at the office of the mayor have been dealt with and anybody that has been suspected of unethical and illegal actions has been relieved of their responsibilities and is no longer in the employ of the municipality.
“The accounting officer, being the municipal manager implicated in the report, resigned voluntarily and is no longer in the employ of the municipality. The remaining allegations against other persons and including the office of the mayor are being subjected to independent scrutiny in the interest of accountability and transparency: this is done through the council.”
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Yesterday morning, Bill Nel responded on social media to the ANC’s retort, saying that the DA statement of February 8 “was based on facts from the forensic report to ensure transparency: the ANC reply of the 9th, true to form, was fragrant with angry political rhetoric and justification for their attempts to conceal the report from the public”.
Nel continues: “Bitou citizens understand that the ANC left our municipality effectively bankrupt in 2011 largely as a result of crooked land deals. Our citizens are equally aware that recent staff selections have ensured the reinstatement of the very same officials that were responsible for those deals.”
Visit www.cxpress.co.za to read Nel’s full statement