/ 12 July 2002

Funding scandal report almost complete

The Western Cape Democratic Alliance is expected to finalise by Wednesday its report on whether Cape Town mayor Gerald Morkel and former finance MEC Leon Markovitz are implicated in the political funding scandal centring on German tax fugitive Jürgen Harksen.

The forensic audit of the two men’s bank accounts — ordered by DA leader Tony Leon after damaging claims that the two benefited financially from their association with Harksen — is understood to have been completed.

However, Absa senior manager Erik Marais has lost his job for his role in exchanging most of the DM105 000, which Harksen says he gave to Markovitz early last year. Following a two-month internal investigation Absa last week dismissed Marais.

In May Marais testified before the Desai commission — which is investigating the political funding scandal and claims of bugging in the provincial government building — how he collected the Deutschmark from former DA provincial secretary Werner Schwella. Marais also testified how he used his passport to exchange the cash at Absa branches, Rennies Travel offices and while on holiday in Amsterdam.

Scorpions spokesperson Sipho Ngwema said the investigation into charges of money laundering, fraud and corruption is in its final stages.

An interim report cleared Morkel of wrongdoing. But further investigations were announced as Harksen told the Desai commission of funding the DA, of raising money for Morkel’s legal challenge against his expulsion from the New National Party, and of a series of cash disbursements.