Wally Mbhele and Justin Arenstein
Mpumalanga refused to learn from its 1995 Eugene Nyati scandal and instead secretly contracted the discredited political analyst less than one year later – only to be fleeced by the smooth-talking wheeler-dealer again.
New information leaked this week indicates that Nyati used more than R200 000 intended for a tourism office in Malaysia to rent himself a luxury apartment in Jakarta at Mpumalanga’s expense.
A contract was granted to Nyati by suspended Mpumalanga Parks Board (MPB) chief executive Alan Gray to promote Mpumalanga as an investment market for South-East Asian developers and tour operators.
Nyati first made headlines in Mpumalanga in 1995 after it was revealed that he had convinced the provincial government to pay him more than R15 000 per day as a consultant on cost-effective government.
He earned more than R1-million before public outrage forced the government to concede the deal was irregular. The province ordered him to refund R800 000.
The auditor general questioned Nyati’s new contract during a forensic audit of the MPB last year but was unable to pin blame for the “wasted expenditure” on anyone because all the relevant documents had disappeared.
A 19-page confession by the MPB’s suspended finance director, Nico Krugel, contends that Gray ordered him to cover up the misadventure. Krugel admits that he drew up a two-year budget for Nyati’s Malaysia fling on Gray’s orders.
“This budget was included in the application compiled by the office of the CEO for permission to set up … an office in Malaysia. At the same time, the commercialisation drive of the MPB was launched at a gala function held in Hall’s Gateway in July 1996,” Krugel explains.
Shortly after the launch, the investment- seeking tour to South-East Asia was planned. Following instructions from Gray’s office, payments of among others R26 000, R180 000 and R16 000 were made by the province’s finance staff.
Shortly before the MPB delegation departed for South-East Asia, Krugel says he became aware of Nyati’s involvement.
“Because of not having being around during the Nyati saga, this did not mean anything to me at that time,” the document alleges.
When they arrived in Malaysia, Nyati immediately demanded more money from the delegation. “He was told that he had had enough in order to set up the contacts … and that any further fees would be determined by the results,” Krugel said.
“A visit to the attorneys in Malaysia resulted in sight of the lease agreement and address for the leased premises … The lease agreement for the premises was signed on behalf of the MPB by Nyati.
“Krugel explained that Nyati had no authority to sign such a lease on behalf of the MPB and the agreement was attempted to be cancelled there and then.
“Confirmation of the MPB’s exemption as a party to the agreement was received soon thereafter,” reveals Krugel’s document, which adds that the application for a representative office was also withdrawn.
According to the documents, former MEC for environmental affairs and tourism David Mkhwanazi and Gray decided who would join the delegation to Malaysia.
“It was never clear why certain individuals were on, neither how cost incurred by non-provincial delegates were to be dealt with.”
Mkhwanazi was later fired because of financial irregularities linked to the MPB.
However, one of the officials was instructed by Gray to get Travel Today to issue pro forma invoices for the purpose of the auditor general’s investigation. Names of delegates were left off the invoices.
“Hotel accounts paid by MPB credit cards were also taken out under the same instruction,” according to the documents.