/ 8 December 2006

Dubai jaunt adds to heat on Rasool

Western Cape Premier Ibrahim Rasool appeared to be fighting for his political life , as both the opposition and senior members of his own party savaged him over a series of scandals.

Interviewed by the Mail & Guardian, the ANC’s Western Cape secretary, Mcebisi Skwatsha, voiced concern about how the provincial government spent taxpayers’ money, and warned that the ANC would not tolerate corruption. And provincial party leaders reportedly leaned on Rasool to dump members of his cabinet.

The ministers under threat include two key Rasool allies, transport minister Marius Fransman and community safety minister Leonard Ramatlakane — both at the centre of brewing scandals. Under pressure, Rasool on Wednesday ordered forensic audits of all provincial government departments.

It was revealed that taxpayers may have to foot a huge bill for the four days Rasool and Fransman, their wives and economic development minister Lynn Brown spent in Dubai’s seven-star Burj Al Arab hotel last month while guests of the Dubai government.

The premier and his entourage met Dubai World, the Dubai government’s development arm and a partner in the consortium that has bought Cape Town’s V&A Waterfront for R7-billion.

It has been suggested the trip was a reward to Rasool for his informal role in putting together the partnerships that benefited from the V&A sale.

Hassan Adams, the BEE partner in the winning syndicate, is known to be close to the premier, and was in Dubai during Rasool’s trip. Rasool also acted as spokesperson for the sale and, say legislature members, was central to the sale negotiations.

More significantly, Rasool is said to have discussed the sale of the R1-billion Somerset Hospital, on prime real estate connecting the waterfront to the city, with Dubai World.

The company has publicly declared its interest in buying the hospital, which will also connect the waterfront and the Greenpoint Stadium.

Fransman told the legislature the Dubai jamboree cost R120 705. but tariffs at the Burj Al Arab range between R16 000 and R28 000 per person per night, putting the overall cost at between R320 000 and R560 000.

Rasool told Parliament’s public accounts committee Scopa and DA legislature member Robin Carlisle he was unsure whether Dubai or the Western Cape government was paying. ”If we are billed for our expenses, we will pay. But if our accommodation was the hospitality of our hosts, we will declare them as gifts, as prescribed by law.”

Carlisle asked how Rasool could authorise a trip without knowing who would pick up the tab. ”Where’s the budget for the trip?” he asked. Rasool responded: ”It’s untrue that there’s no budget.” He provided no details.

He insisted: ”I will never be guilty of such corruption … when Dubai World put Somerset Hospital on the agenda, Fransman requested that it be removed and it was.” The M&G understands, however, that another meeting took place in Dubai at which the hospital sale was discussed.

Also bearing down on the embattled premier is an investigation by Scopa into Ramatlakane’s alleged splurge of R317 716 in public funds on security upgrades for his private home. Scopa has called for a full audit and recommended that he repay the money. Rasool has consistently defended him.

Rasool was also closely questioned in the legislature on the sale of the state-owned Novel clothing factory in Atlantis — now called Western Cape People’s Manufacturing — to a Cape Town investment company, Brimstone Investment.

The province’s investment agency, Wesgro, saved Novel from closure in 2004 by purchasing it for R10-million. It was sold this year for R6,7-million — and it has emerged that the purchaser, Yusuf Patel, was on the board of both Novel and Brimstone.

Rasool vehemently denied impropriety, saying the government had affidavits showing Patel recused himself from the purchase negotiations with Wesgro. ”My conscience is clear … I salute everyone involved in the fight to save every factory and every job in the clothing industry,” he said.

Evidence before Scopa suggests Pahad remained in meetings where the sale of Novel was decided, but did not participate.

Rasool has not denied Cape Town reports that ”ANC officials” — named as provincial party leader James Ngculu, Skwatsha and ANC chief whip in the legislature Max Ozinsky — asked him to reshuffle his cabinet.

Skwatsha denied applying pressure for a cabinet reshuffle, but confirmed ongoing tensions between the ANC leadership and provincial government leaders. ”We will monitor and observe very closely what comes out during the Scopa and multiparty parliamentary investigations into the Dubai trip, and into the allegations against Ramatlakane. The ANC will not tolerate corruption,” he said.