Democratic Alliance Western Cape chairperson Kent Morkel says a claim that he took a bribe is “utter nonsense”, and that he is willing to cooperate fully with the Scorpions.
Micro-loan provider Gilt Edged Management Services (Gems) on Wednesday agreed to pay R65-million in fines and compensation on two counts of corruption, one of which involved an alleged R10 000 bribe to Morkel.
“Gems’s claim is both ridiculous and utter nonsense, and appears to be an attempt to endear itself to the ruling African National Congress,” Morkel said on Thursday. “No one in his right mind would take a bribe and then sign a receipt for it.”
Morkel, who also leads the DA caucus in the Cape Town city council, denied that he promoted Gems with DA-controlled municipalities, as the Scorpions claimed, or helped the company obtain new business.
The Scorpions say Gems, after losing out in its bid to become the preferred micro-loan provider for the South African Municipal Workers’ Union (Samwu), bribed Samwu officials to encourage union members to take out loans with it anyway, and to get municipalities to make repayments directly off workers’ pay.
Morkel facilitated process
Morkel said he had merely, at the request of Samwu Western Cape, facilitated the processing of deductions for “current” loan applications.
At the time, he was a member of what was then a DA-controlled City of Cape Town’s executive committee.
“That is what I was requested to do by Samwu Western Cape in mid-2001 in Cape Town during a period where there was an obvious internal political struggle between Samwu provincially and nationally as to who should be the favoured service provider.
“As Gems was the existing service provider to Samwu’s members in the City of Cape Town, it made perfect sense for applications to be processed by the city. As a member of the city’s executive committee, I felt I acted in the interest of city employees to successfully facilitate that process.”
“I at no stage took a single cent to facilitate the process there, nor were any new applications for loans ever involved to my knowledge.”
He said Samwu Western Cape asked him a few months later to facilitate a similar process in the Eden district municipality, headquartered in George in the southern Cape.
He had replied that the municipality was not his responsibility, that his Cape Town work load did not allow it and that “I would only do it during the December recess when it would not interfere with my responsibilities and if I was paid for my services, time and skills”.
“They agreed to that, and I therefore set up and facilitated a meeting between Samwu Western Cape/Gems and a representative from Eden municipality in George in December 2001.
“I was paid R10 000 the day after the meeting for my services without knowing whether or not this process would be concluded successfully. I immediately signed a receipt for the money.”
He said the Scorpions interviewed him on the matter about 18 months ago, and he offered then to cooperate with them whenever required.
“I have great admiration for the work they do and remain available to assist them at any time.”
Abil shrugs off financial impact
Earlier, Gems parent company African Bank Investments Limited (Abil) shrugged off the financial impact of the R65-million plea bargain.
Abil said it is due to release its financial results for the 2004 financial year on November 15.
“The financial impact of this settlement will not affect the group’s previously stated targeted return on equity of 30% and return on assets of 10% for the current financial year,” it said, nor will the settlement have a “material effect” on those returns in the future.
Abil has agreed to underwrite the estimated R60-million that will be paid out to defrauded municipal workers in terms of the settlement, which was made an order of the Cape High Court on Wednesday.
Abil said in a statement that Gems is now “a discontinued business”, and that the decision to shut it down was made even before the Scorpions probe.
Abil chief executive Leon Kirkinis said the actions by former employees of Gems were “in direct conflict with the way the group conducts its business”. — Sapa
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