grows
Wally Mbhele
As rivals in the political debacle that is engulfing Mpumalanga mounted public attacks against each other – in the wake of a probe launched by the African National Congress into the affairs of the province – more damaging reports about ANC officials’ involvement in corruption were leaked this week.
Documents in possession of the Mail & Guardian reveal that suspended Mpumalanga Parks Board (MPB) officials – presently pitted against Premier Mathews Phosa – were part of a well-organised and extremely sophisticated group of kleptocrats who wasted no opportunity in looting the provincial treasury to enrich themselves and their families.
After suspended MPB chief executive Alan Gray released documents claiming Phosa knew of a series of corruption scandals currently shaking the province, Phosa instructed his lawyers to sue Gray for defamation.
Gray’s allegations about Phosa’s involvement in the Dolphin scandal followed yet another controversial document produced by the provincial general secretary of the ANC Youth League (ANCYL), James Nkambule, who accuses Phosa of corruption. Nkambule was also suspended from the MPB last year after details of his involvement in its front companies were discovered.
Phosa is of the view that the allegations against him stems from the fact that premiers would from this year be appointed by the president. “The only way to get me out is to make me stink,” he said this week.
Claiming allegations against him form part of a “version concocted by criminals who want me to retreat”, Phosa said: “It is not going to be in the public’s interest if I can retreat. There’ll be no politician in this country who’ll be prepared to fight corruption if I can do that.”
Nkambule, ANC provincial organiser Johannes Shabangu, Gray and suspended MPB finance director Nico Krugel are named in the latest report as the main beneficiaries from a series of undercover MPB dealings with non-existent front companies.
These allegations are contained in documents prepared by Judge Willem Heath’s special investigative unit detailing how the Mpumalanga ANC and its youth league, particularly Nkambule, gained handsomely from Gray’s generosity through a host of front companies set up to channel funds into individual accounts.
Shabangu is alleged to have received financial support from the MPB for the ANC’s conference held in Secunda in 1996. A monthly vehicle allowance was allegedly paid to Shabangu’s wife, who was working in the provincial Department of Environmental Affairs and Tourism.
“On various occasions Gray instructed his office to provide support for the ANCYL in Mpumalanga at the MPB’s expense in the form of, among other things, preparation of conference material, purchase of various items such as gifts, promotional material, frames for certificates and hotel accommodation, as well as transport,” it is suggested in documents.
The documents allege that in June 1997, Gray called Krugel and informed him that the ANC had cut the monthly salaries of staff employed in the ANCYLoffice without prior warning. Krugel was then instructed to assist with “top-up MPB expenses”.
The first payment of R9 500 was made to Nkambule out of Krugel’s business account. These payments were continued out of an account in the name of Phambili Construction. Phambili Construction is a front company set up by Gray to transfer funds from the MPB into individual accounts. Another monthly payment of R2 000 was provided for the “proprietor” of Phambili Construction.
“During the existence of this account, it happened a few times when things did not happen automatically for the ANCYL and for Nkambule that the CEO [Gray] became very irritated with Krugel,” alleges the document.
Following this, it is alleged that Gray approached Krugel to assist the ANCYL in setting up a structure which could be used as a vehicle for the league to participate in business ventures and generate funds.
In January 1998, Krugel made a presentation and recommended that a trust be formed for that purpose. A draft trust deed was also presented. Krugel was then asked by the ANCYL to continue with setting up the trust.
Nkambule received assistance in the form of direct payments as instructed by Gray. This was in addition to his board fees. Payments on Nkambule’s behalf were also made to unspecified suppliers and service providers.
Nkambule was paid a monthly vehicle allowance by the MPB. When the auditor general announced the investigation into MPB activities, Krugel was instructed to prepare log sheets for travelling done on community work. This was to be in support of the travel allowances paid to Nkambule. Such payments to Nkambule continued through the Phambili account.
Thereafter, Gray decided that the MPB had to buy a Citi Golf (second hand) from Nkambule. It was clear that the Citi Golf did not have an acceptable trade-in value when Nkambule bought a new car. The MPB had to buy the Golf at almost the price of a new vehicle. The purchase of this vehicle was never understood by MPB staff, according to the memorandum.
Shortly thereafter, Nkambule bought a Volkswagen Jetta with his own finance, and some support from the vehicle allowance paid by the MPB. Nkambule was involved in a car accident and the damage was repaired by Alan Hudson Motors. Per Gray’s instruction, alleges the document, an amount of R16 107 was paid to the panel beaters on December 18 1996.
Nkambule had another accident in January 1997 on his way to Johannesburg. It is understood that Gray issued instructions for the recovery of a wreckage at the MPB’s expense.
“It was discovered that Nkambule had let the insurance cover lapse. Krugel was instructed by Gray to sell the wreck and settle the capital with the financiers. The account, amounting to R73 609,57, was settled with Stannic. Only R14 000 could be recovered from the sale of the wreckage,” alleges the document.
Nkambule’s personal staff, including a driver and security guard, were also paid for by the MPB, initially as casual staff at about R5 500 per month. It is alleged that Gray also wanted benefits such as medical aid and a provident fund to be arranged for Nkambule’s staff.
After Nkambule was charged with burning down his uncle’s shop, it is alleged that the MPB paid R40 000 to cover his legal costs. Security structures at his house were allegedly paid for by the MPB. Medical costs for the birth of Nkambule’s baby were also paid for by the MPB through Phambili Construction.
Nkambule last week threatened to sue the M&G for suggesting that he is involved in a plot to oust Phosa. Two days later, a Sunday newspaper carried a story based on a document he drafted suggesting that Phosa is involved in a host of illegal activities.