Peter Dickson
A scam dubbed “Aircon” is the latest corruption scandal to rock the Eastern Cape legislature.
On Tuesday, Eastern Cape legislature speaker Gugile Nkwinti announced that the secretary of the legislature, Connie de Beer, and finance director Bej Fatuse have been forced to take leave, pending investigation into allegations that they illegally converted R300 000 worth of air tickets into cash for MPLs.
Half of the Eastern Cape legislature and a MEC are allegedly involved, according to a top secret disciplinary committee list leaked to the Mail & Guardian.
This time in corruption-riddled Bisho, MPLs have been aboard a veritable gravy plane for at least a year while legislature staff and MPLs have benefited from a money- lending scheme run from the legislature’s finance directorate.
De Beer, the accounting officer, may have to pay back more than R300 000 once a probe by internal auditor Zolile Gwavu and the legislature’s legal unit is completed.
But it is Fatuse, under investigation for abuse of power, who is in the most trouble. He has been charged with running a loan scheme from his office – funded largely through unauthorised staff salary deductions – and illegal use of legislature facilities.
A Bisho source said the loan scheme, hallmarked by stiff monthly interest rates, has been in operation since last year and many MPLs and staff owe Fatuse sums as high as R50 000 with interest.
Fatuse, without prior authority from the human resources office, would allegedly later deduct the interest from salaries and used his own staff to do the work.
The finance director is also being investigated for approving the cashing of air tickets – each politician is entitled to 12 a year – and the hiring of cars by MPLs in exchange for the ticket.
It is policy that MPLs may use their cars instead of an air ticket for a trip. Provided they have proof of the journey, they are then reimbursed for the monetary value of the ticket – but allegedly no proof has been submitted by MPLs for most of the trips.
De Beer is accused of failing to advise on the legislature’s correct procedure and policy. The R300 000, if proven to be unauthorised, will have to be recovered from him. De Beer says he has “no comment at this stage”.
But Fatuse says not only did he operate a money-lending business, it was a registered close corporation of which he was the sole member. He says it was approved by the state expenditure department to help civil servants “to improve their education and housing”.
He says he ran the business after hours and over weekends, only lending money in the legislature when someone needed it urgently.
Fatuse claims he has made himself unpopular because of his strict control of finances and prevention of abuses and this is why he is being investigated.
Nkwinti, who briefed deputy speaker Khululekile Madlingozi and political party representatives on Tuesday, says he will disclose more details later.
A multi-party disciplinary panel – comprising National Party legislature leader and ex-deputy speaker Ann Nash, Democratic Party provincial leader and MPL Eddie Trent and Pan Africanist Congress legislature leader Tsepo Letlaka – has already been established.
Nash said 32 out of Bisho’s total of 49 MPLs and 10 MECs who allegedly benefited from the tickets-for-cash scheme would be quizzed by the panel.