How the ANC fleeced R1 million from the public for an election rally

Mark Steele, DA Spokesperson on Public Accounts
5 July 2009

The Democratic Alliance has in its possession a series of documents which suggest that the ANC in KwaZulu-Natal fleeced the South African tax-payer of over R1 million, which was then used for an ANC election rally. I am meeting with the Auditor-General this week to put the matter before him and to ask that a full investigation take place.

The available evidence suggests that this constitutes another example of the ANC’s inability to separate party from state, or to distinguish the proper use of public money from the manipulation of revenue for party political purposes. The DA believes the ANC is now obliged to return the money and refund the public.

What happened:

Senior officials of the Msunduzi Municipality (Pietermaritzburg) authorised payment of R 1 065 117 for an event called ‘The Nkosi Mlaba Cultural Day’ on 19 January 2009, despite the actual event being scheduled to take place on 18 January. As far as the DA can ascertain, there is no evidence the event ever took place. Instead, the only event actually to take place on 18 January was an ANC election rally at the Qokololo Stadium, attended by some 50 000 supporters (see the Natal Witness, 19 January, Page 2).

In other words, it appears the ANC used government funds to finance a party event.

The documents:

The DA has in its possession, the following documents (attached):

• The approved quotation (in other words, the authorised payment) for the event. The payment form shows quotes obtained by Hazel Xolo (PA in the Speaker’s Office, Msunduzi), as well as N Hlela (Manager, Speaker’s Office) and Rob Haswell (The Msunduzi Municipal Manager). All forms are counter-signed by the Deputy Municipal Manager for Finance R. Brigemohan. Significantly, the Head of Procurement, F. Grantham, has not signed the form.
• According to the DA’s sources, neither the Mayor nor the Premier were involved.
• The amounts approved were: R497 860 and R569 259 for a total of R1 067 119.
• Council officials confirm that no council resolution for the Nkosi Mlaba Cultural Day has ever been passed.
• Importantly, the quotes were obtained on 19 January 2009, one day after the event had supposedly happened.
• No proper procurement process was followed.
• The Oval where the event was supposed to take place was booked by the Midland Cricket Association on 18 January (booking sheet available on request).

What the documents mean:

There is every indication that the ANC has used government money for party political purposes. There is no vote number on any of the documents, no signature from the Head of Procurement and no Council Resolution authorising payment. Certainly, there is no evidence of any actual event taking place, to the extent that the same venue was booked for a cricket match. The fact that the quotation was approved retrospectively (i.e. on 19 January) suggests the entire matter was a scam to use public money for the ANC’s private business.

What should happen:

President Jacob Zuma has made several statements expressly committing his administration to fighting corruption and to upholding the principle of accountability. He also dedicated his weekly newsletter this week, ANC Today, to setting out his party’s commitment to separating party and state. This incident represents an opportunity for him to illustrate that commitment. Thus, the DA believes:

• The matter should be urgently investigated;
• Those found guilty should be dismissed from office; and
• The ANC should return the money to the municipality.

What the DA will do:

• The DA is meeting with the Auditor-General this week to put the matter before him and to ask that a full investigation into the incident take place.
• I have already distributed copies of the documentation in my possession to the Auditor-General and the MEC for Local Government in KZN, because of deficiencies in compliance with supply chain management regulations.
• I will submit questions to the Minister of Local and Provincial Government interrogating the matter and the government’s action in response.
• I will raise the matter before the Standing Committee on Public Accounts, as well as in the National Assembly.