Minister Ramatlakane
28 March 2007
Cabinet today discussed at length a report by a team of officials from
Treasury and the Forensic Investigation Unit on the so-called interest-free
loan Minister Leonard Ramatlakane was alleged to have received from government.
This investigation and report followed:
1. allegations in the Provincial Legislature and in public that Minister
Ramatlakane had not paid his tax and had fallen into arrears of about R122
000
2. an allegation that Minister Ramatlakane had then proceeded to secure a loan
from his department to pay these arrears
3. a further allegation that this loan was interest-free and had he had to pay
interest it would cost R9 000, with the suggestion that he had therefore
improperly gained R9 000 from the state
4. the further suggestion that, given other controversies, Minister Ramatlakane
is effectively corrupt.
The report effectively refused any allegation of corruption and deemed this
matter to be:
1. An administratively flawed handling of the MEC's taxation involving the
incorrect usage of codes and the incorrect allocations of IRP5 forms.
2. A matter that is the error of the administration and based on Treasury
Regulations, in the recovery in such errors interest is not levied. This
effectively means that the allegations relating to the interest-free loans
remain mischievous, if not scurrilous.
3. A taxation matter that is effectively a private matter between Minister
Ramatlakane and South African Revenue Service (SARS) which should never have
been dealt with so insensitively and should certainly in law should have not
been in the public domain.
4. The report then shows progress in correcting this very unfortunate
matter:
a. It has requested SARS to re-assess the Minister and is generating a
correct IRP5 towards this end.
b. It now leaves the matter as a private matter between Minister Ramatlakane
and SARS as it should have been in the first place.
c. It suggests corrective actions with regard to the administration to prevent
such incidences.
d. It undertakes to in fact reimburse Minister Ramatlakane for what effectively
the State owes him.
Having listened carefully to the report and debating it thoroughly, Cabinet
was outraged at the injustice done to Minister Ramatlakane. It deplored the
action, particularly by MPL Robin Carlisle, to launch into the house and to the
public, and to embroil Minister Ramatlakane in scandal around a matter that was
untested and even quite straight forward in the context of government.
In the event:
1. It is an untruth that Minister Ramatlakane was the beneficiary of a loan
of R122 000.
2. It is an untruth that he improperly gained R9 000 from interest
exemption.
3. It is in fact, the truth that the state now owes Minister Ramatlakane R51
000 because it improperly demanded tax payments from him where it was not
due.
Arising out of this, cabinet has decided to:
1. apologise to Minister Ramatlakane for this error
2. investigate whether any official may be liable for this error
3. ensure immediate repayment of the R51 000 to Minister Ramatlakane
4. do a risk assessment for all Ministers to determine whether other such
errors are being made
5. ask the Leader of Government Business, Minister Lynne Brown, to inform
parties in the Legislature as to the outcome of the reports.
However, Cabinet is also concerned that the Honourable Robin Carlisle is
probably the beneficiary of leaked information. Such information ordinarily is
confidential and even in the case of salaries and taxation private to the
individual concerned. Such information should be respected, Honourable Carlisle
showed no such respect and it is deplorable that the privilege of the house can
so easily be abused.
This is not the first time that the Minimum Information Security Standards
is violated by certain officials and where Honourable Carlisle appears to be
the beneficiary of such information. Cabinet is concerned about this and is
encouraged that we have found the leaked document that we are capable of
tracing it to its e-mail source and that we are intending to deal with it.
Government thrives on oversight but oversight is not a licence for violating
the law, defaming people and launching scandal when the explanations can be
easily provided.
Enquiries:
Shado Twala
Office of the Premier of the Western Cape
Tel: (021) 483 5642
Fax: (021) 483 5636
Cell: 083 640 6771
E-mail: stwala@pgwc.gov.za
Issued by: Western Cape Provincial Government
28 March 2007
