The Department of Cooperative Governance and Traditional affairs in Mpumalanga refutes in the strongest possible terms the article “MEC in battle for Black Economic Empowerment (BEE) shares” which appeared in the City press on 24 September 2010. This article has sought to portray a negative picture of the investigations which were conducted in the Emalahleni Local Municipality and question the credibility, purpose and intensions of the investigations that were conducted.
Mr Norman Mokoena had an interest in the company Leopont 541 (Pty) Ltd in 2006 long before he became an MEC for the Department of Cooperative Governance and Traditional Affairs. Leopont 541 (Pty) Ltd is part of the consortium that built the Highveld Mall. Mr Mokoena became an MEC in May 2009.
The current Administration was hardly two months in office and was still putting its plans and structures in place when the province was marred by service delivery protest that were characterised by violence, intimidation, destruction of property and in some instances loss of lives. One of the municipalities that experienced service delivery protests was Emalahleni Local Municipality. Complaints and allegations of maladministration, fraud, corruption, and poor service delivery which include pot holes, quality of water and lack of interim basic services in informal settlements were levelled against the Emalahleni Local Municipality.
The law requires that when an MEC receives any serious allegations of corruption, maladministration or any wrong doing in a municipality, he must investigate them. It is a fact that the MEC Norman Mokoena received serious allegations of corruption, maladministration and poor service delivery levelled against the Emalahleni Local Municipality. Upon receiving such allegations the MEC wrote to the municipality requesting them to respond to the allegations made against them.
The MEC was not satisfied with the response and he took a decision to launch a full scale investigation. An independent and reputable audit firm Delloit and Touché were appointed to conduct the investigations. This firm of auditors applied their skills and did a thorough job which produced a voluminous report with serious and damning findings. After receiving the report MEC Mokoena then tabled the report to the Emalahleni Council for them to act on the recommendations.
The Emalahleni Local Municipality agreed with the section 106 investigation report and arising out of the report the municipal manager was suspended with immediate effect in terms of the allegations levelled against him. The municipality further charged the municipal manager with 17 charges and disciplinary action was instituted against him. All other implicated individuals have also had action taken against them. Those cases that warranted further action have been handed to the law enforcement agents for further action.
The department therefore rejects in the strongest terms the innuendos and impression created that the MEC had anything to do with charging the Municipal manager. It’s important to note that charging a municipal manager is the competency of the municipality, as he or she is an employee of the municipality. It is not the competency of the MEC or department.
It is not true that the section 106 investigation was instituted because of the said allegations. There are processes and procedures that are followed when instituting an investigation in terms of section 106 of the Local Government Municipal Systems Act, 2000 (Act No. 32 of 2000).
It is also important to note that that these are the following procedures taken when instituting an investigation in terms of section 106 of the Local Government Municipal Systems Act, 2000 (act No.32 of 2000).
1) If the MEC has reason to believe that a municipality in the province cannot or does not fulfil a statutory obligation binding on that municipality or that maladministration, fraud, corruption or any serious malpractice has occurred or is occurring in a municipality in the province, the MEC must:
(a) by written notice to the municipality, request the municipal council or municipal manager to provide the MEC with information required in the notice or
(b) If the MEC considers it necessary, designate a person or persons to investigate the matter.
In Emalahleni Local Municipality, just like in the other municipalities where section 106 investigations were conducted all the required processes were followed. Therefore to suggest that such an investigation in Emalahleni Local Municipality was done in collusion to settle private matters, is mischievous and a distortion of the facts. The logic behind such a statement begs the question that were all the other section 106 investigations instituted in other municipalities done in order to settle private matters, and the answer is no. So therefore it’s misleading and a deliberate effort to distort the facts to say the section 106 investigations in Emalahleni was conducted on those bases.
The Department under the leadership of MEC Mokoena will not be deterred nor be blackmailed from investigating all allegations of corruption and any wrong doing bought to its attention without fear or favour. All individuals implicated in any wrong doing will be brought to book irrespective of the positions that they hold.
The department will continue to work with all local government stakeholders, municipal employees and the communities to turn local government into centres of excellence that are driven by the need to serve their people.
Contact person:
Simphiwe Kunene
Cell: 082 413 3931
