Beleaguered Cape Town mayor Gerald Morkel was on hugging terms with alleged Mafia kingpin Vito Palazzolo, the Desai Commission heard on Monday.
Fraud suspect Jurgen Harksen told the commission that he was with Morkel at Cape Town’s plush Mount Nelson Hotel one evening in February this year when Palazzolo arrived, apparently as a result of a cellphone call to or from Morkel, and hugged Morkel.
Asked by Democratic Alliance advocate Peter Hodes whether he had also received a hug, Harksen replied: ”He greeted me, he not hugged me (sic) but he hugged Mr Morkel.”
The three men had discussed setting up an offshore trust, with the idea that Palazzolo would give money to Morkel through that account, and that Harksen would look after it through his Swiss associate Walter Studer.
Harksen said Morkel and Palazzolo were ”very good friends”.
Palazzolo had been very sensitive about giving money directly to political parties in South Africa. ”I can understand it in the meantime that he was very sensitive about it,” he said.
In June, after Harksen’s initial evidence that he met Palazzolo through Morkel and that he intended making an affidavit about Morkel’s links to Palazzolo, he said he felt ”a bit uncomfortable” about giving open testimony on the matter.
Morkel has repeatedly denied any links with Palazzolo, and in June Palazzolo’s lawyers issued a letter to the media denying their client had any dealings with Morkel.
Asked if he was aware of the letter, Harksen told Hodes: ”Well, he denies a lot of things.”
”So do you, Mr Harksen,” said Hodes.
”Exactly,” replied Harksen.
Harksen also on Monday rejected suggestions that between his evidence-in-chief to the commission and his cross examination he had changed his version of how much money he gave to the Democratic Alliance.
The only thing he had been initially unsure of, he said, was the exact amount and timing of a R500 000 cheque he asked another associate, Antonie Karsten, to make out.
He also denied a suggestion from Hodes that his evidence was ”a pack of lies”, saying Hodes’ claim was defamatory and he wanted to reserve his position. – Sapa