/ 19 September 2008

Mayor Mekgwe’s hot potato

Ekurhuleni mayor Lentheng Mekgwe will be handed the hottest potato of her political career when she receives a report of alleged wrong-doing among African National Congress (ANC) councillors and senior officials in the municipality.

Mekgwe has been in her post for less than two months since her predecessor, Duma Nkosi, was controversially axed in July, mainly as a result of his handling of the allegations against metro police chief Robert McBride.

The mayor’s spokesperson, Prince Hamnca, confirmed that city manager Patrick Flusk is expected to hand Mekgwe the forensic report on the Meyersdal land-swap shortly.

The Mail & Guardian is in possession of a copy of the report, compiled by risk firm Pasco on July 31 and distributed to Flusk and three of his senior colleagues. It is unclear why it took Flusk more than a month to provide Mekgwe with a copy of the report.

The report is likely to push up the heat further in a council that is already tense after the sacking of Nkosi. Ironically, Mekgwe’s first big test is also related to McBride’s actions as head of the city’s metro police.

It was McBride’s department that requested Pasco to investigate allegations of corruption at Ekurhuleni’s metro’s mechanical workshops. This led to the probe into the land deal, according to the risk investigations firm.

Now Mekgwe will be confronted with a report that names some of her most senior councillors, including mayoral committee member Mahomed Akoon. Mekgwe will also have to prepare herself for the severe backlash the report is likely to provoke.

Those accused of wrongdoing by Pasco maintain that the report is a bad excuse for millions of rands paid by the EMM to Pasco for McBride’s legal fees. This theory is supported by the Democratic Alliance.

Flusk’s detractors, notably independent councillor Izak Berg, have accused him of approving payments to McBride’s lawyers via Pasco — an allegation the Bryanston-based firm has steadfastly denied.

Mekgwe may have to choose between Flusk and his supporters — who support the Pasco report and its recommendations — and those who want the report in the dustbin and a separate probe into the flow of money between Ekurhuleni and the risk firm.

The report examines a land transaction in 2000 when the then Alberton Town Council instituted an investigation into the alienation of large parts of Meyersdal for residential development.

After complaints by Gauteng’s department of agriculture, conservation and environment that a nature reserve should be conserved developer Rean Booysen proposed a land-swap with Ekurhuleni. Fifty-five hectares of privately owned land in the nature reserve would be swapped for a piece of municipal land of the same size in residential Meyersdal.

This exchange took place in 2006 and Booysen appointed ANC councillor Neil Diamond as the sole mandate estate agent to sell plots in the development. The process was halted when Flusk refused to sign the section 82 certificate that clears the development’s engineering services.
Booysen unsuccessfully applied to the Pretoria High Court to force Flusk’s hand and was told to first appeal internally.

Supporting documents

  • Read land deal report part 1
  • Read land deal report part 2
  • Read Ekurhuleni officials’ responses
  • Read Ekurhuleni councillors’ responses
  • Flusk, who brought a counter-application for the land deal to be set aside, was sent back by the court, which told him he had no mandate to ask for such an order pending the finalisation of the forensic investigation.

    Pasco now recommends that the land-swap be set aside and disciplinary steps be taken against five councillors, including Diamond and Berg.

    The report also recommends that in future councillors should be excluded from participating in tenders, bids or decisions to alienate municipal-owned land.

    All those fingered by the report have vehemently denied the allegations against them. Berg said it was one of the poorest reports he has ever read and called it ”wasteful expenditure” at R60 000 a page.