Graft accused snaps up top post

A senior Eastern Cape government official, suspended in 2005 for alleged corruption and bribery, has been hired to oversee all social-grant payments in the province, reported the Herald online on Thursday.

The January 1 appointment of Khaliphile Mabhentsela as Eastern Cape acting regional executive manager of the South African Social Security Agency (Sassa) has been widely condemned.

Former superintendent-general of the province's social development department, Mabhentsela quit in 2005 after being suspended by MEC Thoko Xasa for alleged serious irregularities under his leadership.

Charges against Mabhentsela included irregular appointments, corrupt practices and bribery.

Resigned before his hearing

Also suspended were chief financial officer Jackson Mbawuli and corporate services chief director Welile Payi.

Mabhentsela resigned before his disciplinary hearing and his subsequent urgent application to be reinstated was dismissed by Bhisho High Court, said social development spokesperson Phumlani Mdolomba.

He emphasised that Mabhentsela was not forced to leave the department and would not comment on his new appointment.

He said that Sassa was an independent entity, even though it worked closed with the department in overseeing social-grant payments.

In his new post, Mabhentsela would be accountable to Social Development Minister Zola Skweyiya and not the MEC.

Public Service Accountability Monitor researcher Chantelle de Nobrega said that legislation provided that officials were deemed to have been dismissed even if they resigned before hearings into disciplinary charges against them.

Sassa should explain its justification for appointing him, given his previous employment record, she said.

Democratic Alliance social development spokesperson Donald Smiles said it was disappointing that Sassa had appointed someone who had resigned under controversial circumstances.

Certain he is capable

However, Max Mhlathi of the United Democratic Movement said the party had no problem with the appointment as Mabhentsela had not been found guilty.

The suspension had been about holding him responsible for what Payi and Mbawuli had done.

"I have no doubt Mabhentsela has the capability to do the job," said Mhlathi.

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Mufamadi Defends R10m Tender to Former Official

A former senior government official in the public works department has benefited to the tune of R10m from Project Consolidate, the emergency plan to rescue the almost two-thirds of the country's municipalities that are in financial crisis.

This has raised fears that state tender regulations might not have been observed in the case.

Project Consolidate is being managed by the provincial and local government department.

Provincial and Local Government Minister Sydney Mufamadi, in reply to a parliamentary question from Democratic Alliance (DA) MP Willem Doman, said that his department had appointed the Lulu Gwagwa Development Consultants Consortium to support the department with the implementation of Project Consolidate.

Doman also said that the contract amount was R10m over two years.

Lulu Gwagwa is chief operations officer of Lereko Investments, and runs the Lulu Gwagwa Development Consultants Consortium. From 1995 to 1999, Gwagwa was deputy director-general in the public works department.

She went from there to become CEO of the Independent Development Trust.

Gwagwa also serves as a nonexecutive director on the boards of FirstRand, Airports Company SA and the Development Bank of Southern Africa.

Doman, commenting on Mufamadi's reply, said that the DA was concerned that Project Consolidate was not delivering the results expected of it.

It was intended to be a short-term, practical intervention.

"Did the Lulu Gwagwa consortium do the work they were contracted to do, or was the R10m wasted on work that could and should have been done within the department?" he asked.

Doman also said that he would follow up with more questions to Mufamadi, particularly about when the contract awarded to Gwagwa was put out to tender and who else had put in bids for the contract.

The DA MP asked originally whether a company had been appointed to "co-ordinate" Project Consolidate.

Mufamadi replied: "The consortium was contracted to establish and manage a national programme management unit; to align the national and provincial support programmes; to assist in the compilation of provincial action plans; to prepare progress reports for key meetings such as MinMec, the national advisory working group and the president's co-ordinating council; the compilation of a national high-level action plan; and to provide back office support to the provincial and local government department on key Project Consolidate activities."

Doman said that routine functions such as progress reports on meetings such as "MinMec" should be handled from within the department.

Mufamadi also said that the Lulu Gwagwa Development Consultants Consortium was connected to the Presidency and had participated in the presidential imbizo programme.

"In addition, the consortium developed and set up a monitoring and evaluation system for the imbizo programme; assisted in the development of the draft action plans, the uploading of the action plans on the departmental monitoring system, the administration of the monitoring and reporting system, the reporting on progress in relation to the action plan and the development of a guideline document for Presidential Izimbizo 2006."

Further questions that were put to the provincial and local government department had not been responded to at the time of going to press.

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Debate wanted over future of provinces

THE ANC in the Eastern Cape wants to initiate a debate on the future of the provinces with the newly elected provincial executive committee engaging the national leadership to conduct research on the viability of the provinces.

A resolution adopted at the fifth provincial conference comes against the background of a statement by Provincial and Local Government Minister Sydney Mufamadi earlier this year that the future of the provinces was being considered, with one focus being whether there was a need to reduce the current number of nine.

The resolution points out that the debate on the provinces is being conducted in the media without ANC structures being engaged in it.

It notes that the provinces are the result of a compromise position taken during multiparty talks.

The question of the future of the provinces was raised as far back as 2000 during the local government elections campaign and taken further by then Eastern Cape premier Makhenkesi Stofile. However, the ANC did not discuss the issue at its national conference at the end of 2002 in Stellenbosch.

It is, however, expected to be on the agenda at the next national conference at the end of next year, when a decision is likely to be taken on whether the provinces will continue to exist, and if so whether they should retain the functions they currently exercise.

A decision could also be taken on the number of provinces and whether the legislatures should be part-time bodies.

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Mbeki stresses importance of traditional leaders

The institution of traditional leadership occupies a unique and important place in South Africa as it is a critical player in reconstruction and development of the country, President Thabo Mbeki said on Thursday.

"The national Cabinet and I are inspired by the historic position taken by our traditional leaders to work together in harmony with our elected leaders to serve the people of South Africa," Mbeki said.

He was speaking at the annual conference of traditional healers in Pretoria, which was attended by, among others, Inkatha Freedom Party leader Mangosuthu Buthelezi and Provincial and Local Government minister Sydney Mufamadi.

Mbeki said all structures of elected government are committed to working together with traditional healers to examine the progress and challenges facing them.

The finalisation and publication of the White Paper on traditional leadership in government and the coming into operation of the Traditional Leadership and Governance Act will ensure that traditional leaders become active participants in the system of democratic governance.

National government has set up a task team to work on a national programme to support traditional leaders.

The programme will ensure that legislation governing the institution is correctly implemented.

Main focus areas of the programme will include allocation of necessary resources, skills development and the formulation of partnerships between municipalities and traditional councils.

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Ndebele king issues legal threat to Mbeki

An amaNdebele king is threatening to take President Thabo Mbeki to court for failing to recognise him.

Mabhoko III, otherwise known as Mbusi Mahlangu of the Ndzunza-Mabhoko clan, was appointed king by the royal family following the death of his father, King Mayitjha III, who died of a stroke in June 2005.

But he has not yet received his recognition certificate from Mbeki's office, because the kingship of the clan is under dispute and is being investigated by the Nhlapo commission of inquiry.

Mabhoko III is a descendant of King Musi, the 16th century monarch who was the last king to lead the amaNdebele people as one nation. His appointment has been opposed by other Ndzunza royals.

The office of Mpumalanga premier Thabang Makwetla has confirmed that it received a note from Mabhoko III in which he said he intended suing to fast-track his appointment.

"The traditional leader intends taking President Mbeki, Provincial and Local Government Minister Sydney Mufamadi and the premier to court to demand his recognition certificate," said Makwetla's spokesperson Ntime Skhosana.

He said the provincial government was concerned by Mabhoko III's legal threats, but would be guided by the findings of the Nhlapo Commission which handles matters relating to traditional disputes.

A senior department of local government official called on Mabhoko III to exercise patience. "There is no need for him to take it to court. The appointment is made following the normal procedures under the new Act. It stipulates that recognition certificates must be issued by the President," said Solly Masilela, the department's provincial director of traditional leadership.

"Whenever there are any objections and disputes, the commission must conduct an investigation, whose decision will influence the presidency in issuing a certificate of recognition," said Masilela.

Meanwhile, some members of the Ndzunza royal house want nothing to do with Mabhoko III's legal threats - even though they support his claim to the throne.

"We have distanced ourselves from this decision because Mabhoko III is doing things on his own accord without consulting the family," said royal family spokesperson Sipho Mahlangu. - African Eye News Service

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Four seconds for a speech?

MINORITY political parties in the city of Joburg may get as little as four seconds of speaking time in future meetings.

This is in terms of a proposal to allocate speaking time in accordance with the representation of each political party, which is being discussed at a meeting of the city’s Rules Committee this afternoon.

Sparks are expected to fly at the meeting as the DA and minority parties, that are known for routinely sucking up to the ANC, attempt to oppose the proposal.

The proposal states that no more than 15 minutes would be spent on any specific report at council meetings.

When calculated according to representation, the ruling ANC will have almost nine-and-a-half minutes with the opposition DA getting a little more than four minutes.

The ANC has 136 councillors in the City of Joburg, while the DA has 59.

The Inkatha Freedom Party, which has seven councillors, will have 28,8 seconds, while the Independent Democrats’ four members will only speak for 16 seconds.

The African Christian Democratic Party and Pan Africanist Congress, with their two councillors, will speak for eight seconds.

The biggest losers are representatives of the seven minority parties with one councillor each, among them the Christian Democratic Party, Azanian People’s Organisation, Operation Khanyisa Movement and Freedom Front Plus.

These parties will, should the proposal be adopted, speak for about four seconds, which is only enough time to address the Speaker of Council.

Members of the Mayoral Committee will speak for three minutes each and chairmen of the portfolio committees for only two minutes.

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Policies to be reviewed

Certain policies will be reviewed next year to ensure better service delivery. This was revealed by Pesident Thabo Mbeki on the second day of his two day visit to the North West province. The President also expressed confidence in next year's ANC National Conference.

The two day meeting discussed issues such as the state of the ANC in the province, unity, discipline and the general conduct of members. Mbeki says there is a need to re-evaluate some of the country's policies to make them more relevant to service delivery. His comments come just months before the ANC's policy conference in June next year. Mbeki says: “The policy conference will review policy to say what is it that we need to do to improve policy so that we speed up provision of better life for people."

There has been much speculation in recent months about the atmosphere that will prevail at the ANC's national conference at the end of next year. The man at the helm says this should not affect ANC members doing their duty to the people. He warned against the tendency to use party membership for personal gain.

Mbeki said: “The only thing that the membership means is to serve the people... it does not mean that you will be elected the mayor, the premier or the president." Mbeki, expressing his confidence ahead of the leadership election, says: “Having looked at the policy we need, projects and programmes, the national conference will decide who are the best people it would elect to ensure implementation."

The President says he is happy with the state of the ANC in the North West, and is diarised to visit the Free State next month.

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Sloppy municipal management a time bomb

South Africa could face a mass revolt that might undo its democratic gains if municipalities' sloppy record of service delivery did not improve, president Thabo Mbeki warned on Friday.

Mbeki told the National Council of Provinces that the weaknesses in municipalities were a serious threat to the country's democracy and if left unattended would fuel disenchantment, creating a gulf between councillors and the masses.

He again pointed to the lack of proper coordination among government departments and skills shortages and highlighted these as some of the key factors hampering development in the country.

His remarks at the special sitting of the NCOP at Parys in the Free State come shortly after parliament's joint budget committee noted in its report on Tuesday that there was a need for government clusters to strengthen their co-ordination as this would improve delivery.

The report added "that departments that provide the various basic services for the effective functioning of service delivery units, such as schools and clinics, were not effectively engaging with each other".

It said examples of schools without water and sanitation or clinics without electricity were a matter of concern and classical illustrations of the lack of co-ordination within departments.

Mbeki on Friday took on the same point, saying if government departments worked jointly as they should, "we will avoid the risk of schools being built without water provision and sanitation, without access roads or without electricity".

"Indeed, if we work as we should, jointly and in an integrated way, we will avoid clinics being built without medicines or health workers.

"We will ensure that communities that regain their ancestral lands through the restitution process receive the necessary support to engage in productive agricultural activities," he said.

Mbeki also reiterated that the lack of skills was affecting the government, especially municipalities.

"If this problem of lack of capacity in municipal governance is not given the necessary attention, it can undermine our efforts to deepen democracy at the local level.

"(It) may bring about an unintended consequence of the development of a gulf between our municipal governments and the people," warned Mbeki.

As part of efforts to co-ordinate the efforts of government departments and related systems, the cabinet and the president's Co-ordinating Council would over the next two months meet with the National House of Traditional Leaders to ensure traditional leaders also played a part in conception of development programmes.

In its report this week, the joint budget committee also raised similar concerns, urging the government to improve its human resources capacity. It noted that the high vacancy rate and staff turnover in departments was affecting service delivery.

NCOP chairperson, Mninwa Mahlangu, also raised the importance of co-operative governance and responsive municipalities in his speech.

"Our shared view is that the notion of co-operative governance is based on the principle that the three spheres working together or acting in concert are more likely to address challenges facing the country than if they were to act separately or in competition," said Mahlangu.

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Hospital clerk fingered as fraud mastermind

Celiwe Khumalo lived a simple life as a clerk in the human resources department of Vryheid Hospital in northern KwaZulu-Natal.

Her job included doing paper work, handling queries and issuing notices on behalf of the department. She was paid a basic salary of R9294 a month.

But away from the eyes of her colleagues and authorities, the 48-year mother lived large: she treated herself to a R500000 suburban house in her home town of Newcastle, which she bought for cash, filled it with state-of-the- art furniture and splurged generously on cars.

Khumalo also bought a farm and a second house in Volksrust, Mpumalanga, about 60km north of Newcastle, where she raised chickens, goats and cattle .

It was the simple, yet meticulous nature of the operation that still baffles the National Prosecuting Authority (NPA).

“It was probably one of the most efficient schemes in the public sector,” said senior state advocate Knorx Molelle. “The operation went unnoticed for some time until a routine audit picked up inconsistences.”

Molelle said the auditors notified the NPA which launched an intensive, three-year investigation into the discrepancies.

The investigation first picked up the incompatibility between Khumalo’s salary and her opulent lifestyle, and eventually identified her as the mastermind behind an elaborate scheme that had defrauded the health department of over R6-million.

The investigation found that the syndicate enticed nurses and other employees to resign, get paid an inflated pension settlement, pay a portion of the money to Khumalo as commission for inflating their payouts and rejoin the department later.

Molelle said the scheme involved Khumalo, a national Treasury official who specialised in inflating the payouts, and 26 other people who recruited potential targets.

The “commission” was allegedly transferred to accounts belonging to Khumalo’s husband, Oscar, and her children, Samkelo, 22 and Simphiwe, 20.

It took three years to trace the paper trail. “The problems were not picked up because the same people who were trusted to guard the system were the ones defrauding it,” said Molele.

Khumalo herself resigned three weeks after she was transferred to the eDumbe Hospital in Paulpietersburg, promoted to the hospital’s chief human resources officer, and given an annual salary of R111528.

However, her estimated pension of R290000 mysteriously amplified to R618000 when she was eventually paid out.

The family appeared in the Durban Commercial Crime Court alongside 10 other members of the syndicate.

The NPA’s Asset Forfeiture Unit seized seven houses, six cars and a farm.

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Boss vows to clean up

The Eastern Cape Development Corporation’s new chief executive, Mxolisi Matshamba, vowed to pull the organisation back from financial disarray.

Speaking at the release of the ECDC’s annual report, Matshamba, in his first public statement as chief executive, said he would not sleep easy until the organisation delivered a clean audit report.

The ECDC annual report showed its operating loss rose from R60 million in the 2004/5 financial year to R80,8m last year.

It also raised a number of operational challenges. Furthermore, the ECDC was shown not to be aligned with other emerging development agencies and government departments.

The provincial legislature economic affairs portfolio committee has ordered the ECDC board and senior management to come up with a turnaround plan.

Matshamba joined the organisation on Monday after heading the Department of Trade and Industry’s (DTI) Trade and Investment South Africa (Tisa) division as acting chief executive for the past two-and-a-half years.

“The organisation has become internally focused and when this happens some stakeholders lose confidence in the organisation,” Mtshamba said.

The ECDC also experienced a high turnover in top management over the past two years. Its previous CEO, Kevin Wakeford, left earlier this year due to “frustrations”.

As major factors contributing to his resignation, Wakeford cited lack of skills and competencies in the organisation and uncertainty and instability created by the many acting management and staff positions.

Asked how he would ensure success, Matshamba said it was important to first stabilise the organisation, because “once the organisation has become unstable it is really vulnerable”.

“During my experience working with state organisations I’ve learnt that it is crucial to get the buy-in from political stakeholders and win their confidence. This can be done through regular briefings, but not by being a cry-baby and running to them with each problem,” he said.

Matshamba said the ECDC should also be aligned with government principals and other development institutions in the province.

“Once you have that, you will be able to reduce political interference. My intention is to serve my term, I’m passionate to be here,” he said.

He said that only three of the provinces – Gauteng, Western Cape and KwaZulu-Natal – made use of the offerings provided by the DTI.

The organisation’s long-awaited restructuring process that started more than a year ago was put on ice until a new chief executive had been appointed.

ECDC chairperson Professor Wiseman Nkuhlu, who joined the ECDC earlier this year, said the organisation would meet at the end of the month to find clear objectives and timeframes for the issues hindering the ECDC’s performance.

Nkuhlu said he had gained valuable background experience in ensuring the stability of organisations when on the board of the Development Bank of SA and the industrial Development Corporation.

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Top job for sex pest envoy

South Africa's former ambassador to Indonesia, Norman Mashabane, who still has charges of sexual harassment pending against him, is to start work next week as political adviser to Limpopo Premier Sello Moloto.

The premier's office has confirmed the new appointment, endings weeks of speculation and denials. It said Mashabane will begin work Monday 13 November.

His wife Maite Nkoana-Mashabane is the MEC for housing and local government in Limpopo.

In an internal inquiry held by the department of foreign affairs in 2004, Mashabane was found guilty of 22 counts of sexual harassment of embassy employees.

He was alleged to have stroked employees' buttocks, molested a worker in a lift and made lewd movements with his tongue.

His appeal against the findings was upheld by the Minister of Foreign Affairs, Nkosazana Dlamini-Zuma, and he left the department only after his contract had expired at the end of 2004.

The DA leader in Limpopo, Michael Holford, said it was outrageous that Moloto had appointed Mashabane.

"His appointment is a slap in the face for the women of Limpopo, whose rights the local government is trying to promote," Holford said.

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Tshwane boss quits

Tshwane municipal manager Blake Mosley-Lefatola has resigned. He handed his letter of resignation to Tshwane mayor Gwen Ramokgopa who had not yet responded.

Asked about rumours that he and Ramokgopa did not get along, Mosley-Lefatola said: "We had a good working relationship. There were differences in dealing with issues."

Mosley-Lefatola, whose contract was recently renewed by Ramokgopa, said he would now pursue "other plans in the corporate sector".

His resignation comes a month after the council denied that he had been suspended.

The Freedom Front Plus (FF+) said at the time that the council was "almost without top management" after Mosley-Lefatola's supposed suspension.

The FF+ also claimed that action against Mosley-Lefatola had triggered a spate of resignations, suspensions and non-renewal of contracts of several other senior managers.

Mosley-Lefatola was linked to one of the companies allegedly awarded contracts irregularly.

Mayoral spokesperson Richard Mkholo confirmed that Mosley-Lefatola had submitted his resignation letter.

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The continuing Hollywood-style harassment

A fuming Ngoako Ramatlhodi has demanded that the state also bankroll his legal fees - if he is charged.

He has been raided by the Scorpions and is the subject of a corruption investigation.

The former Limpopo premier's intention to seek state help if he is prosecuted comes after the Presidency's agreement to set aside R10-million for Jacob Zuma's defence costs.

Zuma had to sign an undertaking that he would pay the money back, if he was found guilty of corruption.

If the National Prosecuting Authority (NPA) reinstates corruption charges against Zuma and decides to charge Ramatlhodi, the state could find itself flooded with demands from former politicians accused of criminal cases that allegedly happened during their term of office.

Ramatlhodi said on Tuesday: "Of course they will have to pay (my legal fees). Where will I get the money from? ... (As this) happened in my term, I am entitled to it, there is no question about it.

"My lawyers will advise ... (but that's only) if we reach the point (of being charged). I don't think we will."

Raids at his two houses relate to his alleged involvement in a multimillion-rand tender deal to distribute social security grants in Limpopo while he was premier.

Although chief state law adviser Enver Daniels stayed clear of commenting on the specifics of Zuma's case, he said: "You will notice that the acts committed by officials in the course and scope of their duties are covered even after they have left the employ of the state.

"The state provides assistance to employees because the state may be exposed to huge claims for damages if the officials have been found to be negligent or guilty.

"This assistance does serve to ensure that the public purse is protected against frivolous or unjust claims and that compensation is paid only in those cases where the officials involved have been found to be negligent or guilty through their acts or omissions," said Daniels.

However, head of executive and legal services in the Presidency Lindiwe Vilakazi said on Tuesday all applications would be considered on their own merits.

Ramatlhodi again blasted the Scorpions, referring to a group of individuals inside the unit who, he said, were on a witch-hunt to eliminate political threats.

"How do you come to any other conclusion when people come after you four years after being cleared? So there must be some pressure somewhere...

"There is a group of people who have been probing for the past 10 years and are very interested in defending their positions.

"I won't mention names (but) they are now in charge, some of them are... very new in the ANC... and that's why they are killing children of the ANC, one after the other. It will not work in the long term," he said.

"They are in for a very big shock. We can't afford a situation where the organisation is hijacked by anybody and we're sent to jail under false pretences...

"I never expected that they will do this (raid), given how weak (their case was), because the issue was closed as far as I am concerned."

His sympathisers said he was targeted after referring to President Thabo Mbeki as an autocrat. Ramatlhodi refused to respond regarding his Mbeki comment, but said he would always say how he felt.

"I speak my mind when I have to. I don't really care. My interest is the unity of the ANC... If I feel that the movement might be going a wrong way, I speak."

Ironically, two senior Scorpions officers, Geoffrey Ledwaba and Cornwell Tshavhungwa, who were in charge of his case, were themselves arrested for unrelated corruption charges.

"The abuse of power is frightening," Ramatlhodi said.

He was supported on Tuesday by Cosatu, which described the raids on him as "the continuing Hollywood-style harassment".

Both Cosatu and Ramatlhodi slammed the NPA for conducting a second round of raids on Ramatlhodi and some of his friends despite their legal challenges against the searches and seizures.

"Cosatu opposes all forms of arbitrary victimisation. The Scorpions/NPA are continuing to show contempt for due legal process and for court orders. It is not an agency that respects or can be trusted to defend the law," the union federation said.

"Nobody is safe when an agency with unlimited powers and resources is running wild in this way, and refusing any kind of restraint.

"Cosatu repeats its long-standing call for the reintegration of the Scorpions into the South African Police Service and a speedy end to the elective prosecutions of choice which have been the sole contribution of the regrettable Scorpions experiment."

NPA spokesperson Makhosini Nkosi said "we will do the talking in court".

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