While I was on holiday, a message was left on my cellphone from Mail & Guardian reporter Sam Sole, asking me to phone him about ”the Mdu Msomi” matter [an alleged request from the chairperson of the eThekwini council’s audit committee, Msomi, for R1-million to be paid into an account he personally controlled. The payment would have been part of a ”settlement” deal between the council and Rainbow Chickens over a disputed water bill].
Although Sole had been told that the matter was sub judice, he went ahead and published a story anyway (”Durban council probes R1-million ‘fowl play”’, June 4).ÂÂ
The thrust of his article was to defame me through innuendo, as he claimed his story raised questions about ”the role of eThekwini Metro manager Mike Sutcliffe” and a whole set of allegations about possible corruption in the Rainbow matter.ÂÂ
The matter was, in essence, a dispute over the payment of monies owed by Rainbow for water. It had refused to pay, and for some time had been holding out as we fought in court to get it to do so.
Its newly appointed CEO approached me about a possible settlement, but Metro management indicated that the matter was in court and it was sure we would win. The management also expressed disquiet about the tactics that had been used by Rainbow.
On February 12 the head of audits approached me, indicating that our attorneys in the matter had received a letter ”from the attorneys acting on behalf of Rainbow Chickens advising us that the matter had been settled by their client and a Mr Msomi, [who was] representing the Metro in these discussions. Furthermore, the claim had been settled in a sum of R6-million. These payments were to be made by February 13 and we are to confirm the settlement by close of business today.”
As no one at the Metro had given anyone authority to settle on the matter, we immediately informed our attorneys. We started comprehensive investigations, which are still being concluded.
Unfortunately, our ability to properly deal with the matter was constrained through Rainbow making information about discussions between Msomi and Rainbow director Stephen Heath available to Sole. We had wanted to mount a sting operation to catch those who may have been involved in corruption.
The possibility also existed that the whole matter was a set-up by Rainbow to force the Metro into a settlement.
Interestingly, Rainbow then began a process to try and hold us to this ”agreement” with Msomi through amending its plea. We decided to take the company on and proceeded to court.
While we had not been able to conclude whether Msomi or Rainbow acted improperly or illegally, I took action in late May to request that Msomi resign because, even though he had not been found guilty of anything, it was clear that his independence had been compromised. He agreed to resign well before Sole came on the scene.
The matter continued, however, and a court date was set for the middle of June. Then, just before the matter went to court, Rainbow settled, agreeing to pay back what we were expecting to get and it also agreed to pay our full costs in the matter. Rainbow settled probably because the tactic of having Sole write a one-sided story failed to force us to settle.
I presume Sole got the story from Democratic Alliance leader in eThekwini, councillor Lyn Ploos van Amstel. She is married to the senior counsel acting for Rainbow. At no stage did she inform me, as accounting officer, or any high- ranking official of this alleged corruption. This is in spite of the fact that she is a member of the audit and executive committees.
The executive committee has resolved that Ploos van Amstel’s actions will be further investigated by the speaker and appropriate action taken.
What are the views of the M&G about what appears to be an attempt by white opposition persons not to help us stamp out corruption, but to allow such allegations to besmirch our black-led council?ÂÂ
The instance of a white opposition politician contacting a white official at eThekwini, who is four levels below me in the reporting hierarchy — and then bringing in a white journalist like Sole, who then defames through innuendo, is surely not what respectable journalism is about?
Unfortunately the M&G ends up with a story that doesn’t inform readers of the meticulous work we had been doing for almost four months to explore all possibilities of corruption, but which also ensured that Rainbow paid the accounts it owed us.
Michael Sutcliffe is city manager of eThekwini Metro