/ 1 January 2002

DA’s messy money trail

A former chief secretary of the Democratic Alliance in the Western Cape told the Desai Commission on Monday how he handled a DM99 000 donation for the party.

Werner Schwella told the commission although he was not told where the money came from, he suspected it was from controversial German businessman Jurgen Harksen, or alleged Mafia kingpin Vito Palazzolo.

Schwella said that on the instructions of DA Western Cape leader Gerald Morkel he collected the money, in a white envelope, from then finance MEC Leon Markovitz in about August last year and then handed it on to now suspended Absa bank official Erik Marais.

The money was in nine bundles of 10 DM1 000 notes each, and nine single notes.

Markovitz told him when he handed over the cash ”there’s one note missing, I’ll replace it.”

Schwella said he did not know if Markovitz did ever replace the money.

The commission earlier heard testimony from Marais that he changed the money over a period of time using his own passport, at Absa branches, and offices of Rennies Travel and during a holiday in Amsterdam. He had received no specific instructions on how to make the payments into the DA account.

He said he specifically asked who the donation came from and Schwella said he did not know.

Schwella also told the commission that in December 2000 a letter was drawn up in his name thanking a firm named Global Finance SA for a US75 000 donation to the party.

Afterwards he read in the press that Global Finance was a front company for Harksen.

He did not know if the money was in fact paid in. Schwella is currently a councillor for the DA in the Cape Town Unicity.

Meanwhile, Western Cape health MEC Piet Meyer was sworn in on Monday as acting premier of the Western Cape.

The swearing in ceremony was conducted by the Judge President of the Cape John Hlophe at the provincial legislature building in Cape Town.

The swearing in was followed by a special cabinet meeting during which Peter Marais officially resigned as premier of the province. – Sapa