/ 16 September 2002

DA calls for axing of forestry deal

The Democratic Alliance called on Public Enterprises Minister Jeff Radebe on Sunday to immediately cancel the ”corrupt” multi-million rand Komatiland deal with Zama Resources Corporation and put it out to tender once again.

”He should also urgently appoint a commission of inquiry to probe the deal. There is mounting evidence to show that this deal is fraught with corruption,” said DA representative Rudi Heine.

Michelle McMaster, an administrative manager at Zama Resources Corporation, has confessed to lying in her testimonies to Pricewaterhouse-Coopers and the Public Service Commission auditors to cover up for her boss Mcebisi Mlonzi, and to save her company from losing the R335-million Komatiland forestry deal.

McMaster said she was now forced to make a complete confession to a ”high authority” as she was not prepared to put her and her family’s ”necks on the line”.

On Saturday afternoon, McMaster made a statement to the Public Protector in Cape Town, admitting that she had lied.

The two investigations followed a Sunday Times report in July that Public Enterprises chief director Andile Nkuhlu received R55 000 from Mlonzi, an executive of Zama Resources Corporation.

Nkuhlu allegedly received the money before the R335-million forestry deal was awarded to Zama Resources Corporation.

Mlonzi and Nkuhlu have denied that the money was a payoff for the contract, saying they were simply settling old debts, the newspaper said.

Mlonzi has since been suspended and Nkuhlu resigned from his post this week. And the two separate probes cleared the Zama board of bribery.

On Friday, the government said the Komatiland forestry deal was being finalised and would not be affected by the controversy over claims of bribery involving Nkuhlu and Zama Resources.

”The deal is being concluded at the moment, and we will make an announcement shortly,” said Public Enterprises special adviser Dr Ian Phillips. – Sapa