/ 24 March 2000

Nkambule wants golden handshake

Justin Arenstein

Self-confessed fraud, African National Congress factionalist and sacked Mpumalanga ANC Youth League secretary James Nkambule is demanding a R867 000 golden handshake from the government for agreeing to “leave quietly”. The outspoken youth leader, who is credited with toppling former premier Mathews Phosa from power in a bruising political stand-off last year, confirmed this week he would sue the government for constructive dismissal unless he is paid at least R867 000.

He will need the money to fight 77 theft and fraud charges after allegedly helping suspended Mpuma-langa Parks Board chief Alan Gray embezzle at least R2,3-million from taxpayers through a web of front- companies two years ago.

A “reformed” Nkambule was dismissed from the province’s local government three weeks ago after helping establish three anti-corruption commissions into high- profile provincial ANC leaders, including the party’s provincial treasurer and Lowveld Escarpment District Council (LEDC) member Jerry Ngomane.

Ngomane is allegedly part of a cabal of councillors and officials accused of awarding contracts totalling at least R15-million to their own companies or those of friends or relatives.

The Mojapelo commission into the LEDC and a similar Louw commission into the Highveld District Council have both been frozen following ANC objections to their composition.

The findings of a third commission, headed by Walter Mkhatswa, into multimillion-rand tender fraud and abuse of power by ANC councillors at the Highveld Ridge Council in Secunda have been with Premier Ndaweni Mahlangu for four weeks.

There is still no indication of whether the report will be released.

Both Mahlangu and his representative, Sefako Nyaka, were unavailable for comment, while MEC for Local Government Fish Mahlalela has simply refused to comment on anything related to Nkambule or the commissions. “I don’t have a public explanation for [his] leaving. All I can say is that James [Nkambule] agreed to go after we all had a long discussion with him,” said Mahlalela.

He also refused to confirm or deny reports that the premier threatened a provincial cabinet reshuffle unless Nkambule was ousted and the commissions “internalised”.

“I’m not sure what to say. I cannot say anything,” he hedged. Mahlalela has previously publicly claimed he received death threats for instituting the commissions.

Mpumalanga Director General Coleman Nyathi initially refused to comment but eventually, reluctantly confirmed he was leading negotiations on Nkambule’s severance package. “There is no agreement yet. I have requested the state attorneys to advise me but … Nkambule’s past activities have not been healthy. His role in the parks board scandal and the criminal charges are just some of the reasons for his leaving,” said Nyathi. Nkambule’s letter of dismissal stresses the action is “on instruction of the premier” and praised Nkambule for his recent role in the government.

Nyathi refused to explain the comments or why the province only acted against Nkambule after he spearheaded the establishment of the commissions and Ngomane’s role in the alleged tender fraud cabal. Ngomane readily admits to interests in two companies which have large contracts with the LEDC, but insisted this week all the deals were above board.

“I have always declared my interests and recused myself from council meetings where there was a possible conflict of interests. I know they are targeting me but I am clean,” said Ngomane. Ngomane owns a controlling interest in Ubuntu Civil Engineers and is linked to Endercon Civil Engineering, which also owns a significant stake in Ubuntu.

Ubuntu and Endercon are two of nine companies earmarked for investigation by the Mojapelo commission after Mahlalela claimed in February that the government had prima facie evidence of tender fraud.

Advocate Phineas Mojapelo requested detailed documentary information from LEDC chief executive Thoko Sithole three weeks ago, but was almost immediately quietly removed as commission chair following complaints by councillors that he had “personal agendas”. Mojapelo has consistently refused to take calls or answer questions on the issue.

Nkambule has previously admitted he irregularly channelled at least R105 000 from the parks board to the ANC, as well as using tax money for party conferences, election campaigning and personal expenses.

He alleged in a report last year to ANC president Thabo Mbeki that Phosa was aware of the abuses and had used tax funds to mount a campaign against Jacob Zuma for the position of ANC deputy president. The allegations sparked an internal party probe that cost Phosa his premiership and provincial chair of the ANC and Nkambule all his ANC positions.