Local Government, Environmental Affairs and Development Planning
The Hawks in the Western Cape confirmed it is investigating allegations of money laundering involving DA councillors, an NGO and a church in the City of Cape Town:
- Whether section 106 of the Local Government: Municipal Systems Act, 2000 (Act 32 of 2000), has been triggered; if not, why not; if so,
whether he has undertaken an investigation into these allegations; if not, why not; if so, (a) what has been the outcome of this investigation and (b) what measures have been put in place to ensure that this type of fraudulent practice does not reoccur?
Section 106 of the Local Government: Municipal Systems Act, 2000 (Act 32 of 2000) (“Systems Act”) regulates my powers to initiate investigations into allegations that maladministration, fraud, corruption, or any other serious malpractice has occurred or is occurring in a Municipality.
A provincial investigation in terms of section 106 of the Systems Act must be preceded by a pre-investigation assessment, as required in terms of section 5 of the Western Cape Monitoring and Support of Municipalities Act, 2014 (Act 4 of 2014) (“the Western Cape Act”). As part of the pre-investigation assessment, I am required, amongst other things, to provide the Municipality in question with an opportunity to provide written representation on any allegations that are being considered for a possible investigation in terms of section 106 of the Systems Act, and to then assess all available information objectively before taking a decision on the necessity for a provincial investigation. Any action taken to investigate allegations must furthermore be procedurally sound and defensible and requires substantiated evidence or documentation to support the allegations.
A section 106 of the Local Government: Municipal Systems Act, 2000 (Act 32 of 2000) investigation has not been initiated to date as due process needs to be followed.
- In relation to the allegations in question, correspondence will be required to be sent to the Municipality. Upon receipt of the written representation to the allegations from the Municipality a pre-investigation assessment will be conducted into the matter to determine whether an investigation will be necessary in terms of section 106 of the Systems Act at the Municipality.
Correspondence has been sent to Mr Herron in order to provide him with an opportunity to provide any additional information and /or documentation relating to this matter in his possession, before the allegations are directed at the Municipality.
