GEORGE NEWS - Chief Financial Officer Keith Jordaan evacuated his office on Monday following an order from the Municipal Manager, Trevor Botha.

The outcome of Jordaan's disciplinary hearing will be communicated next Monday, 15 July, during a special council meeting which will be closed to the public.

Council will then decide whether Jordaan should be fired. Botha's insistence that Jordaan leaves his office before Council deliberated the issue, came as a surprise to some.

The matter relates to two fixed investments made by George Municipality, which amount to R350-million. The choice of the financial institution Old Mutual, where the investments were made, came under scrutiny for "not being on the list" of institutions where municipalities may invest money. A portfolio councillor is also involved in the matter since his son, who is employed by the financial institution, suggested the municipality as a client.

Disciplinary proceedings were instituted against Jordaan following a council decision taken in November last year. The disciplinary hearing was recommended by the firm FTI Consulting, who conducted a forensic investigation. According to information, the cost of this investigation amounts to R800 000.

Botha said the disciplinary process has now been finalised and the presiding officer has presented his findings and sanctions to the municipality. "The report of the presiding officer will be tabled before a special council meeting scheduled for Monday 15 July," said Botha.

'George deserves the best'

When asked for comment Jordaan said, "In the best interest of George and the municipality I personally do not want to comment on the outcome of this matter. The outcome is with my attorney and the available legal process will be followed to its conclusion. I ask that the public of George respect my family and my privacy in this time. And that they will continue to stand together to fight fraud and corruption. George deserves only the best."

Jordaan had been suspended last year for 60 days, from August to October, following an earlier recommendation by the law firm Schröter & Associates, who compiled a report on possible financial irregularities by Jordaan and a portfolio councillor. The forensic investigation by FTI and the subsequent disciplinary hearing followed later.

Full cooperation

In an earlier statement by Tabby Tsengiwe, chief communications officer at Old Mutual Limited, the institution said they view any allegations of financial misconduct in a serious light. "Old Mutual cooperated fully with the investigation and shared all relevant documentation with FTI Consulting in the interests of transparency. Old Mutual wishes to confirm that it has honoured all of its contractual obligations towards the municipality insofar as the specific investment mandates are concerned and there are currently no funds managed by Old Mutual on behalf of the George Municipality."

The buck stops here

Councillor Gert van Niekerk of the Freedom Front Plus said he believes it is a witch hunt. "The final decision on any such investment rests with the municipal manager. The municipal manager signed it; it's time that he is held accountable for the administration of George Municipality. Everyone involved had to be investigated, and that didn't happen," said Van Niekerk. "Seen in the bigger picture, it is common knowledge that George Municipality has not even lost five cents. Old Mutual's investment arm appears to be not listed as one of the institutions in which municipalities can invest money and that was the only 'irregularity' to consider. Billions of rand have already been lost by so-called investment entities that do appear on that list."

PBI Councillor Virgill Gericke said the process for investigation was initiated by an urgent motion to Council by his party, regarding reserved funds or investments of the municipality. "We look forward to the report which will serve on Monday. The PBI is delighted that the investigation has finally come to an end."

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