The ghost of German tax fugitive Jurgen Harksen is set to continue haunting the Democratic Alliance — despite its attempts to exorcise it by nudging Gerald Morkel to quit as Western Cape party leader.
Trustees of Harksen’s insolvent estate are still seeking the return of DM99 000 from the DA, and will go head-to-head with the party in the Cape High Court early next year to recover the cash.
In its report, released this week, the Desai commission found Harksen, or one of his associates, donated the Deutschmark to the party.
The DA maintained it would not accept the finding on the source of the money pending civil court hearings.
”We will accept the verdict of the court on whether Mr Harksen gave that money,” said DA management committee chairperson James Selfe.
In addition, the Scorpions indicated they would resume their investigation into possible money laundering, corruption and fraud by Morkel and former Western Cape finance MEC Leon Markovitz.
The unit put its inquiries on hold pending the outcome of the Desai commission, and would only decide whether to pursue criminal charges after studying its report, spokesperson Sipho Ngwema said this week.
Morkel dismissed the inquiry, saying: ”I have done nothing dishonourable or improper and I await any action with complete tranquillity.”
The commission found that ”Hans”, the mysterious, yet-to-be traced German businessman Morkel claimed gave him the money, was a ”figment”, and was in fact Harksen or one of his associates. The DA’s own forensic audit earlier this year did not make a finding on the DM99 000 because it could not trace its source.
The commission said only Markovitz — no longer a DA office-holder — knew ”Hans’s” real identity and may have hidden it to avoid action by the Harksen trustees to recover the money.
The commission found no evidence that Harksen paid Morkel’s personal expenses, including rent and legal fees. But it said Morkel and Markovitz ”were the beneficiaries of generous hospitality at Harksen’s expense … They do not appear to have had any compunction in enjoying such benefits.”
Morkel hinted this week he would also step down as head of the DA’s Cape Town council caucus, while remaining a councillor. However, he appears to have retained his deputy chairmanship of the party at national level.
He put a brave face on the report, telling a media conference it was the ”appropriate time now that I’ve been cleared of all allegations”.
”It was not appropriate for me to resign earlier because this would have been interpreted by the DA’s political opponents as an admission of guilt,” he said.
He said he had decided to quit late on Tuesday night after talking to his family and had then communicated his decision to DA leader Tony Leon by phone. He claimed his party colleagues had tried to dissuade him, saying ”the timing was not right”.
There has been widespread spec- ulation he would be replaced at the Western Cape DA congress in March.
A day after maintaining it would be up to the Western Cape structures to decide Morkel’s future, the DA was at pains to explain that his resignation was of his own choice.
Sources say DA leaders did not give Morkel explicit marching orders. However, the suggestion that it might be appropriate for him to step down had been communicated to him over many months.
At a federal congress meeting in June, a source said, Morkel and Markovitz had been closely questioned on the Harksen affair. Complaining that his integrity had never been challenged as it had been over Harksen, Morkel indicated it might be time to wind up his 18-year career in politics. However, the DA only censured Morkel and Markovitz for wining and dining with Harksen.
The DA, which has steadfastly rejected calls for Morkel’s resignation in the past year, has come out in support.
”[Morkel’s] decision is typical of his selflessness in placing party and service above position and status. Over the past year he has shown determination, bravery and an admirable refusal to buckle under extreme pressure from his enemies,” said Leon.
Leon said it was ”very vexing that one donation to one political party is held up to such scrutiny”, while no attention was paid to ”the petrodollars the [African National Congress] received”.
The DA continued to lambaste the Desai commission as a ”political instrument” set up to discredit the party, while at the same time applauding its finding that Harksen was a liar.
”He [Judge Siraj Desai] is an ANC cadre,” Morkel said.