/ 8 October 2010

Shilowa quits damaging leadership tussle

Shilowa Quits Damaging Leadership Tussle

Mbhazima Shilowa, the deputy president of the Congress of the People (Cope), is considering turning down the nomination to oppose founding president Mosiuoa Lekota for the party’s top job.

Aides to the former Gauteng premier were this week working on a statement announcing the decision, but were still consulting his supporters in provincial structures as the Mail & Guardian went to press.

Two people close to the process said he had planned to tell his supporters he was now unavailable for the post and would resign from the Congress National Committee at the end of his term. Shilowa declined to comment.

Continuing divisions that threaten party unity are said to be the main reason for his withdrawal. He earlier accepted the nomination. It is unclear whether the allegations of abuse of public funds allocated to Cope in Parliament is another reason for Shilowa’s withdrawal from the presidential race. He is the party’s parliamentary chief whip.

Lekota made the allegations public in the run-up to the May national congress, which turned ugly, although Shilowa has yet to be charged with any wrongdoing.

Lekota’s CNC supporters claim the allegations have been confirmed by a preliminary report of a KPMG forensic audit. They allege the report lists these cases of malfeasance:

  • Parliament raised questions about R4,4-million in irregular or unaccounted-for expenditure by Cope;
  • A total of R132 885 was owed to lawyer John Ngcebetsha for fees relating to Shilowa’s court action against Lekota and a labour dispute with a former Cope employee, Avril Harding;
  • Cope MP Nozipho Didiza-Ndlela, who accused senior party official Willie Madisha of sexual harassment, was paid R1 400 a day — the costs of travelling from her home in Randfontein, outside Johannesburg, to Cope’s headquarters in Braamfontein;
  • About R110 000 was deposited in the private bank account of Shilowa’s personal assistant in Parliament, Jen de Wet, which she could not explain to KPMG;
  • Staff members employed by Shilowa never received employment contracts, pay slips or IRP5s;
  • Cope youth leader Malusi Booi received a contract of R500 000 without proper procedures being followed;
  • Shilowa spent R3,6-million in five days preparing for the Cope congress in Centurion; and
  • De Wet fabricated documents handed to the original auditors, Mazars.

According to Lekota-aligned sources, Shilowa refused to cooperate with the forensic audit and the computer hard drives of staff members were seized to obtain information.

This week Shilowa denied these allegations. “After discussions in the congress working committee I agreed to cooperate in the interests of the party and to make sure that this audit is not being used to delay the congress,” Shilowa said. He was still waiting for the auditors to call him for his response to the allegations.

He said the parliamentary whips had told Cope that they could account for the R4,4-million but the party had not enabled the parliamentary team -­ Shilowa, Lolo Mashiane, Dennis Bloem, Julie Killian and Papi Kganare — to present their side of the story.

Shilowa’s backers in the national leadership believe Lekota is using the forensic audit as a tool to block Shilowa’s ascent to the party presidency. A CNC member close to Shilowa said that the money was authorised by Bloem and Killian for Cope’s head office to service the party’s debts and the matter was being used unfairly to hound Shilowa.

Shilowa said the CNC had also resolved that the party would settle the costs of some court cases and the debt to Ngcebetsha was included. He said the audit was being used to further political ambitions. “That information is less about the audit, but more about the politics. No one can produce a single shred of evidence linking me to any wrongdoing. I was not even a signatory during the period in question.”

The CNC meeting of September 4 resolved that the forensic investigation should not continue until its terms of reference were made available to the committee, a condition that Shilowa’s accusers have yet to meet.

“CNC members support the forensic investigation on condition that it is based on sound financial reasons, rather than on a witch-hunt,” said the minutes of the meeting.