Local Government, Environmental Affairs and Development Planning

Question by: 
Hon Danville Smith
Answered by: 
Hon Anton Bredell
Question Number: 
16
Question Body: 
  1. Whether the alleged misconduct involving the member of the mayoral committee for finance of the George Municipality related to the investment of the Municipality’s funds with a company called Old Mutual has been brought to his attention; if so;

 

  1. whether he will institute an investigation into the alleged misconduct; if not, why not; if so, what are the relevant details?

 

Answer Body: 

Yes, these allegations were brought to my attention some time ago and it was furthermore brought to my attention that:

  • the Municipality had appointed an attorney’s firm to conduct an investigation;
  • the matter was reported to the Commercial Crimes Unit of the South African Police Service; and
  • the Municipality had initiated disciplinary action.

I have been kept abreast of the actions taken by the Municipality to date.

I also requested the Municipality to co-operate and engage with the Directorate for Priority Crime Intervention (“DPCI”), and make all correspondence, reports and findings available to them.

In addition to the above, when notified by the Municipality that they had directed the firm conducting the forensic investigation on behalf of the Municipality to cease the investigation into Councillor Cronje, I requested the Municipality to provide reasons why it believed that item 13 of the Code of Conduct had not been transgressed and why the investigation had been terminated against Councillor Cronje.

Following receipt of the Municipality’s response to my request for reasons, I instructed my Department to engage with Provincial Treasury officials in order for them to specifically advise whether there were any Local Government: Municipal Finance Management Act breaches, supply chain management irregularities or any other matters affecting financial governance that arise from this matter and the response from the Municipality to date.

Provincial Treasury engaged with the Municipality and requested documentation in order to assist and provide the advice requested on this matter. Despite numerous requests, the Municipality initially failed to provide all of the requested documentation to Provincial Treasury. This then required my intervention and I directed correspondence to the Municipality relating to the outstanding information listed by Provincial Treasury. The Municipality provided the last of that documentation requested in December 2019.

Provincial Treasury is currently assessing the response provided by the Municipality,

whereafter I will expect the advice which has been requested from Provincial Treasury.

It is furthermore my understanding that the firm conducting the forensic investigation on behalf of the Municipality has concluded their report and Councillor Cronje has been invited to respond to the contents thereof before it is tabled in Council.

 

 

 

 

 

 

 

 

 

Date: 
Friday, February 28, 2020
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