A paper trail leading to the suspension of a senior government official in the Eastern Cape government bolstered evidence that “[Premier] Nosimo Balindlela is using the state against particular comrades under the pretext of fighting corruption,” Irvin Jim, regional secretary of the National Union of Metalworkers of South Africa (Numsa), said this week.
The selective application of the law by the authorities “shows that they are protecting their own,” he added. “It is absolutely clear that there is a consistent attack on particular working class cadres.”
Jim was referring to the chief financial officer in the provincial agricultural department, Vusi Menzelwa, who was suspended last month after ordering that state financial support for a controversial agricultural empowerment deal called Kangela be put on hold. Kangela is being investigated by the Scorpions for corruption.
It has since emerged that the Eastern Cape government is continuing to support the deal — despite the arrest last month of senior politicians over alleged graft related to the project.
The Scorpions took into custody a wealthy farm owner, Norman Benjamin; his accountant, Emiliya Peneva; former Eastern Cape agriculture minister, Max Mamase; and his wife Neo Moerane-Mamase, the province’s housing, local government and traditional affairs minister. Mamase resigned about a month before his arrest.
Guguile Nkwinti, the new agriculture minister, confirmed in his policy speech last month that the Kangela project would continue.
In October last year the Mail & Guardian reported that Quickvest 54, a company through which the Mamases own their luxury home, had received substantial payments deposited by Peneva. Peneva and Benjamin are directors of property development firm Parch Properties 17.
Flouting provincial finance regulations, Mamase ordered his department to fund the acquisition of a 49% share of Benjamin’s farms by an empowerment trust called Kangela. The shares were to be given to 44 of Benjamin’s employees, with a view to developing them as future citrus farmers.
Mamase’s department transferred R15,68-million to Kangela to make this possible.
Through Uvimba, a parastatal that provides micro-financing to emerging farmers, the government paid nearly twice what the shares were worth.
Despite a high-level Scorpions investigation into these allegations, the agriculture department transferred another R5-million in December, through Uvimba, to pay for work on the Kangela farms by several service providers. None of the work had been formally commissioned or approved by the government.
According to Uvimba’s financial records, R3,5-million of this was later transferred to the account of Benjamin’s company, Oudewesthof Township Development. Another R300 000 was used to pay service providers, while the balance still appears to be in the Uvimba account.
The Public Finance Management Act states that the chief financial officer of a provincial department must approve the transfer of departmental funds.
Menzelwa wrote a spate of letters to the head of the agriculture department, Amos Nyondo, the Treasury and Peneva detailing the irregularities related to the R5-million. However, Menzelwa was overridden and the money was ultimately transferred.
This week, agriculture department head Nyondo said the “R5-million was used to pay service providers who had provided work towards the development of Kangela. The department was contractually obliged to pay for those.”
However, a contract was only signed after the work was completed.
Masiza Mazizi, Balindlela’s spokesperson, said: “We would appreciate a clear pronouncement by Numsa on issues of corruption in relation to cases involving politicians, public servants and ordinary citizens. The premier remains committed to fighting corruption.”