ECDC asks public protector for Mandela burial report

OPENING UP: Eastern Cape Development Corporation heads, from left, CEO Ndzondelelo Dlulane, chairman Nhlanganiso Dladla and board member Simphiwe Thobela who chaired yesterday’s media briefing at the East London Golf Club Picture: MIKE LOEWE
OPENING UP: Eastern Cape Development Corporation heads, from left, CEO Ndzondelelo Dlulane, chairman Nhlanganiso Dladla and board member Simphiwe Thobela who chaired yesterday’s media briefing at the East London Golf Club Picture: MIKE LOEWE
New public protector Busisiwe Mkhwebane has been urged to release the report into a 2014 Mandela memorial funds controversy.

The inquiry was conducted by former public protector Thuli Madonsela into an estimated R35-million allegedly funneled through the Eastern Cape Development Corporation (ECDC).

ECDC board chairman Nhlanganiso Dladla, with most of his board around him, called for the release of the report yesterday, saying Madonsela had “assured us that the matter of the funeral debacle would be finalised in a report”, but the ECDC understood that her wrestle with President Jacob Zuma over the state capture report had “overshadowed” the release of the ECDC-Mandela report. “It had been finalised so we are not sure why the protector is sitting with it. It is in our interest that it is cleared up.”

Dladla was supported by board member Simphiwe Thobela, who chaired and led most of the media briefing yesterday following the ECDC’s 19th AGM with its shareholder, the provincial government. Thobela said: “We want it to be released. We engaged with before she left.”

No official response had been received from the protector at the time of writing but the Dispatch reliably learnt that the report was with Mkhwebane who, when contacted, replied: “I have 20000 cases to review” and that it was “unfair” to call her on the phone and ask her to respond. She said her staff would respond later.

Dladla told the media: “ report would help a great deal in telling the story from an objective point of view. We feel we are clean and we are comfortable in that regard.

“We await an objective position on the matter from outside. It is not enough to just say it ourselves.”

The Dispatch first highlighted a possible misuse of funds when the Buffalo City Metro council approved a R10-million budget to fund memorial services three days before Mandela’s funeral in December 2013.

It subsequently became clear that a potentially much wider fraud could have been perpetrated during the mourning period for Mandela, as the auditor-general uncovered millions in irregular spending in other government departments and the ECDC, which channelled at least R35-million, ostensibly for the commemorations.

In April, the Dispatch revealed that then-provincial treasury head Marion Mbina-Mthembu authorised the ECDC expenditure and allegedly instructed then-ECDC CEO Sitembele Mase and CFO Sandile Sentwa to make payments of more than R11-million within two hours, without proper documentation.

A number of regional ANC politicians, city officials and business people had charges brought against them for fraudulent misuse of these millions.

The case against some was finalised, although the prosecution of others became bogged down.

Dladla said yesterday that following the ECDC receiving an unqualified audit for 2015-16: “We were hoping it might have faded from memory. The auditor-general was no longer chasing us up because it was two years behind. But there is still a public perception which we would like to see cleared up.”

He said the ECDC’s own internal inquiry had satisfied the board there was no malfeasance. “On the other hand, we accepted that we might have tripped up procedurally, which led to the qualification.”

Dladla praised the leadership of the new executive led by new CEO , saying “they have been quietly turning the ECDC around”. — mikel@disapatch.co.za

subscribe

Would you like to comment on this article?
Register (it's quick and free) or sign in now.

Speech Bubbles

Please read our Comment Policy before commenting.