/ 19 September 1997

Phosa appoints independent inquiry

Justin Arenstein

In a clear attempt to be seen to be acting decisively, Mpumulanga Premier Mathews Phosa has appointed an independent private- sector commission of inquiry into the Motheo housing controversy.

The commission, headed by Deloitte & Touche managing partner Hugh Dreyer, will use a team of experts from Deloitte & Touche and from auditing firm KPMG, It will investigate information uncovered by Auditor General Henri Kluever in his report into the Mpumalanga housing debacle.

The commission will also probe Mpumulangas seemingly flawed management practices and may recommend tighter controls.

Phosas carefully worded statement announcing the commission emphasised that it did not have the constitutional authority to investigate the Minister of Housing, Sankie Mthembi-Mahanyele, or any officials in her department, or even matters affecting the national department.

It will instead investigate whether either Motheo or Nedcor and their representatives made misrepresentations to the provincial housing board during the projects approval process.

The role played by the disgraced former board chairman, Saths Moodley, in presenting Motheos scheme to the board will also be probed, as will the contrived nature of the boards contract with Motheo.

Phosa refused to be drawn on who would investigate media allegations and the auditor generals concerns that Mthembi- Mahanyeles close links to Motheo founding director Thandi Ndlovu may have played a role in the contracts approval.