/ 24 October 2000

R1,1m windfall for suspended parks chief

PHILLIP NKOSI, Nelspruit | Tuesday

SUSPENDED Mpumalanga Parks Board (MPB) chief Alan Gray, who faces 77 criminal charges for allegedly embezzling R2m of taxpayer funds, has been paid his full salary of R44000 per month – over R1,1m – since he was suspended in September 1998.

Gray will this week finally face an internal disciplinary hearing, which is expected to review his written admission that he used MPB resources to set up and operate a shady business network designed to fund the African National Congress (ANC) and a number of handpicked provincial politicians.

The MPB’s attempts to dismiss Gray have, spokesmen said, been hampered by the 77 related theft and fraud charges brought against him by police.

Gray was suspended in September 1998 for his role in the illegal use of 31 game reserves as collateral for a series of dodgy promissory notes worth over R1,3bn. He may, however, still escape a full hearing because his contract as MPB chief executive expires at the end of November, and is unlikely to be renewed.

Gray claims in a 32-page statement that the network of front companies and trust funds used tax funds as “seed capital” and that many of the ventures are built on government tenders.

Gray’s sidekick and former MPB financial director, Nico Krugel, was convicted and sentenced to 10 years in jail on 20 criminal fraud charges last October after admitting that two of the front companies he operated for the network had embezzled over R600 000 from the government.

At least R105000 of the stolen money was channelled into the ANC Youth League to bankroll provincial conferences, election campaigns and propaganda material.

An additional amount was allegedly used to buy a luxury helicopter for another of Gray’s companies.

Bank deposit slips and account records also indicate that at least R35000 in cash was simply deposited into Gray’s personal Standard Bank account.

Gray will appear in the Nelspruit Regional Court again on November 28 along with sacked ANC Youth League provincial secretary James Nkambule, provincial Youth League organiser Alfred Thumbathi and sacked MPB accountant Maxi Green. – African Eye News Service