/ 11 May 2009

Sexwale’s business interests under scrutiny

Tokyo Sexwale’s business interests in the construction industry are under scrutiny to see if there is a conflict of interest with his appointment as human settlements minister responsible for housing.

Sexwale’s spokesperson Chris Vick said on Monday Sexwale’s personal share portfolio and his shares in Mvelaphanda Holdings were being scrutinised by the company secretary’s office for any potential conflict of interest.

Sexwale only found out about his appointment on Saturday so the assessment was being conducted as quickly as possible.

”It’s a priority for him, he doesn’t want any uncertainty around these issues,” said Vick.

Sexwale’s business interests would be declared through the Parliamentary register, to ensure transparency, and if the assessment found anything that could raise concerns steps would be taken.

Sexwale, a former Gauteng premier and a Zuma ally, would be sworn in as minister of human settlements, renamed from housing, in Pretoria on Monday.

Media reports cited Mvelaphanda’s shareholding in property development, construction and banking, as an example of how a minister tasked with overseeing housing delivery could face a conflict of interest.

Vick said options that could be considered during the assessment included establishing a blind trust, or stepping down from certain positions, but any decision would be announced on the JSE’s news service Sens.

According to www.businessdictionary.com, a blind trust is a type of trust in which the beneficiary of this trust is prevented from knowing how his or her money is invested by the trustee.

They are created to avoid any potential conflict of interest between the duties of a public officeholder and his or her choice of investment portfolio, the site explained.

Sexwale also had a stint as South Africa’s version of American entrepreneur Donald Trump, when he had the job of hiring and firing competitors in the local adaptation of reality show The Apprentice.

He has also been a keen sponsor of South Africa’s A1 Grand Prix. — Sapa