/ 14 February 2006

DA told to report Oilgate to police

A loan allegedly made by Imvume Management head Sandi Majali to the wife of a Cabinet minister should be probed by the police as it might be a criminal offence, the Public Protector said on Tuesday.

He did not have the powers to conduct criminal investigations or prosecute guilty parties, the office of the protector, Lawrence Mushwana, said in a statement.

He therefore advised Democratic Alliance MP Hendrik Schmidt to refer the matter to the police.

Schmidt had asked Mushwana to reopen an investigation into the alleged misappropriation of public funds by state oil company PetroSA, allegedly also involving Majali’s oil trading company.

The request, Mushwana said, was based entirely on allegations that Majali had made a loan to the Thuthukile Skweyiya, the wife of Social Development Minister Zola Skweyiya, with a view to improperly influencing the minister.

Skweyiya was allegedly to have used his powers to ensure that a contract was awarded by the department to a company in which Majali had an interest.

In his report on his initial investigation into Oilgate, allegedly involving the channelling of public money to the African National Congress’ election campaign, Mushwana had found that suggestions of a corrupt relationship between Skweyiya and Majali were not substantiated.

He could find no reason why it should be referred to the prosecuting authorities for a criminal probe.

The latest allegations, which came to light last month, did not form part of the complaints lodged with his office mid-last year, Mushwana said.

”The alleged corrupt payment was made prior to the commencement of the Prevention and Combating of Corrupt Activities Act, 2004,” he said.

”It might, however, if proven to be true, have amounted to a violation of the provisions of Section One of the Corruption Act, 1992, which is a criminal offence.”

Should a criminal investigation be launched, and a decision taken on prosecution, the Public Protector would consider an investigation ”of that part of the alleged misconduct that falls within his mandate and jurisdiction, if any”, the statement said.

The DA said it would study Mushwana’s response.

”Advocate Schmidt is seriously considering following the Public Protector’s advice to report this matter to the police,” said spokesperson Martin Slabbert. – Sapa