Local Government, Environmental Affairs and Development Planning
(1) (a) How many investigations have been launched in respect of the George Municipality in terms of section 106 of the Municipal Systems Act from 2009 to date, (b) what allegations were or are the subject of each of these investigations, (c) how many of the investigations identified in (a) above (i) have been completed to date and (ii) are ongoing, (d) what costs have been incurred by the Western Cape Government to date for each of the investigations identified in (a) above, (e) what positive outcomes have been achieved by each of the investigations identified in (c) above, (f) by when will each of the investigations identified in (c) above be completed, (g) how many of the investigation reports received by him to date have been issued to the George Municipality for further action but have been subsequently withdrawn by him, (h) which investigations identified in (a) above concern these withdrawals, (i) why were each of the investigation reports identified in (g) above withdrawn, (j) what steps have been taken or are being taken to address the reasons for the withdrawals identified in (g) above and (k) what are the cost implications to the Western Cape Government for withdrawing the investigation reports identified in (g) above;
(2) whether the investigations in (h) above have been abandoned; if so, what are the relevant details?
(1) The information sought in this regard is as follows:
(a) There have been 2 (two), section 106(1) of the Local Government: Municipal Systems Act 32 of 2000, investigations authorised by the Provincial Minister at the George Municipality.
(b) After conducting an objective assessment, the Minister was of the view that there were sufficient grounds to believe that maladministration, fraud, corruption and/ or serious malpractice has or was occurring at the Municipality. The allegations under investigation were/ are the following:
• (i) matters covered in the first section 106 investigation were:
o Irregularities pertaining to the War-on-Waste Project;
o Procurement and contract management irregularities relating to the Nelson Mandela Boulevard Project, including that the Municipal Manager received an undue benefit from the appointed service provider; and
o The interference or attempted interference of a Councillor in the appointment of personnel in the Expanded Public Works Programme, including the potential involvement of a senior manager and other municipal officials.
• (ii) matters covered in the second section 106 investigation are :
o The appointment of Expanded Public Works Programme personnel linked to Municipal Councillors;
o The irregular appointment of a municipal official;
o The irregular appointment of a municipal official;
o The irregular appointment of the Deputy Director: Financial Services;
o The irregular appointment on contract, and the alleged interference in the recruitment process;
o The interference into the recruitment process for the JCB Operator post by a senior manager and/ or Councillor, due to the alleged failure to shortlist the Councillor’s son;
o The removal of the IT-function from the job description of the Deputy Director: Admin & IT, without the required processes being followed, before the post was advertised;
o The irregular appointment of Senior Manager: Legal in the Municipal Manager’s office.
(c) How many of the investigations identified in (a) above:
(i) have been completed to date:
• the first section 106 investigation into the 3 (three) allegations detailed above has been completed.
(ii) are ongoing:
• the second section 106 investigation into the 8 (eight) allegations detailed above is still ongoing.
(d) What costs have been incurred by the Western Cape Government, to date, for each of the investigations identified in (a) above:
• For the first section 106 investigation into the 3 (three) allegations an amount of R1 362 800.00 (one million, three hundred and sixty-two thousand and eight hundred Rand) was spent; and
• The second section 106 investigation into the 8 (eight) allegations has cost, thus far, an amount of R1 526 400.00. (one million, five hundred and twenty-six thousand and four hundred Rand).
(e) The following positive outcomes have been achieved through the completed investigations:
• The reports issued have uncovered serious offences and contraventions which must be considered by the Municipal Council;
• The reports from the first section 106 investigation into the 3 (three) allegations have been tabled before the Municipal Council which resolved to deal with the recommendations in the reports. It should be noted that it is the Municipal Council, which the Constitution has mandated to deal with the findings of the forensic investigation report:
• Copies of the s106 investigation reports were handed over to the Directorate for Priority Crime Investigation (HAWKS). A number of persons implicated in the one s106 report were summonsed to appear in court, after the HAWKS concluded their investigation with the benefit of the s106 investigation report. The other two matters are under investigation by the Hawks;
• The senior officials implicated in the section 106 report, relating to the War-on-Waste project, are no longer employed at the Municipality;
• Based on the reports from the investigation, the Municipality can implement measures to ensure good governance within the Municipality;
• The Municipality can take action against those being implicated in the forensic reports;
• The reports inform the Municipality on liability and assist to determine whether and from whom funds can be recovered;
• There is deterrence value to those employed within municipalities located in the Western Cape, can be assured that allegations of fraud, corruption, maladministration, and serious malpractice will be investigated, and action will be taken against those implicated and found to be involved in wrongdoing at the Municipality; and
• The investigations serve to establish and maintain the community’s trust and confidence in Government, in that allegations relating to those implicated, will be adequately addressed.
(f) It is anticipated that the second section 106 investigation into the 8 (eight) allegations will be finalised by the end of September 2021.
(g) One of the reports in respect of the second section 106 investigation was received from the independent designated investigators and issued to the George Municipality for further action but has been subsequently withdrawn.
(h) The investigation report into the allegation relating to the irregular appointment of Senior Manager: Legal in the Municipal Manager’s office.
(i) The legal representatives of one of the municipal officials against whom a finding was made in the report (now withdrawn), raised an issue on the procedure followed by the independent designated investigators and, after receiving legal advice on this aspect, I retracted the report, so as to afford those implicated in the said report with a further opportunity to be heard.
(j) Those implicated in the said report have been afforded a further opportunity to be heard.
(k) Any additional cost implications, if any, in order to provide implicated persons a further opportunity to be heard can only be determined upon the finalisation of the said report.
(2) No investigations have been or will be abandoned.
