Update

GEORGE NEWS - Leader of the Good party, Patricia de Lille, made waves nationally last week when she approached the public protector's offices in Cape Town on Thursday 4 April, brandishing a stack of documents she claims provide clear proof of corruption within the George Municipality. The former Cape Town mayor's statement on Facebook later the same day, in which she likened the alleged corruption in George to the VBS corruption scandal, caused a huge stir.

In the statement De Lille writes about "a similar investment and kickback scheme which had been operating in the DA-led George Municipality". She names the Chief Financial Officer, Keith Jordaan, and Portfolio Councillor for Finance, Stag Cronjé, as key role players in the scheme.

De Lille claims evidence of the scheme has been repeatedly reported to the provincial government, which has failed to act against its members. Minister of Local Government, Anton Bredell, released a statement within hours, saying De Lille's claims are devoid of fact and accusing her of being politically opportunistic. Bredell said provincial government is fully aware of the allegations and that the matter had been reported to the Hawks in George. 

"In addition, the municipality has procured the services of a forensic firm [FTI Consulting] to investigate the allegations and the provincial department is further aware that the municipality has in fact already initiated disciplinary processes against the implicated municipal official [the CFO]."

Apart from the forensic report from FTI, George Municipality obtained a report from a local law firm, Shröter & Associates, in July last year, following a request in Council for an investigation in the matter. According to information, Jordaan's internal disciplinary hearing is due to start soon. Municipal spokesperson Chantel Edwards-Klose said George Municipality is aware of the allegations and confirmed an investigation had been undertaken. "No comment can be made on the outcomes of said process until finalised," said Edwards-Klose.

SNY IONA AF. Portfolio Councillor for finance, Stag Cronjé Photo: Michelle Pienaar

PBI claims the prize
Hot on De Lille and Bredell's heels, the PBI party released their statement, saying they had been the first to uncover the alleged corruption in 2018. "This was accompanied by extensive investigative efforts by PBI Councillor, Virgill Gericke," reads the statement. "It was the PBI that submitted a motion of exigency to the George Municipal Council, to investigate the possible corruption with regard to investments made by certain high-ranking officials. The matter has been dealt with confidentiality and due process is being followed. The relevant law enforcement agencies are presently dealing with the case."

The PBI states they are aggrieved by these sudden so-called "revelations" by De Lille. "The PBI has exposed this alleged corruption almost a year ago when the Good party was not even in existence."

Leader of the PBI, Virgill Gericke Photo: Michelle Pienaar

Councillor's son implicated
According to De Lille's statement, the evidence, including a forensic investigation led by an independent firm of attorneys [FTI Consulting], points to the irregular transfers of hundreds of millions of rand since 2017 by the George Municipality to Old Mutual. "Linked to those transfers are handling fees paid to the son of the DA councillor, Stag Cronjé, who is responsible for the municipality's finances. Kickbacks evidently amounted to almost R400 000 in the first six months of the project, alone."

De Lille quotes from an investigative report, saying it was concluded that (1) the CFO of George Municipality abused his position, (2) the documentation "seems to indicate that the son of a George municipal councillor gained financially" from the scheme, and (3) there were efforts to cover up the councillor's conflict of interest through re-drafting agreements.

"The report recommends internal action to hold the councillor and CFO accountable, and that the matter is referred to applicable law enforcement agencies for further investigation."

De Lille says instead of following the report's recommendations, "George councillors instructed the municipal manager [Trevor Botha] not to investigate the implicated councillor. The DA-led council, including the implicated councillor, resolved that action should be taken against the municipal manager - the man who attempted to stop the corrupt payments and commissioned the investigation."

Minister of Local Government Anton Bredell.

Defending their integrity
Reacting to a request for comment, Cronjé said, "First of all, I want to make it clear that my integrity will never be for sale. Secondly, I will welcome any inquiry and give my full cooperation. Thirdly, I would like to make it clear that I have never been given the opportunity by Council to comment on allegations."

Jordaan said, "I wish to state that it is not in my nature to respond to malicious statements in the media. As the chief financial officer of George Municipality, I have been entrusted with the financial management of George Municipality, something which I have proudly always done and will continue to do with the necessary due diligence and always to the best of my ability. I have never and will never act illegally, as my soul is not for sale to the devil. I will continue to provide the necessary support to the South African Police Service, provincial government and other agencies in eradicating corruption within our society."

Tabby Tsengiwe, chief communications officer at Old Mutual Limited, also released a statement on the matter. "Old Mutual views any allegations of financial misconduct in a serious light. We can confirm that we were approached by FTI Consulting, which had been mandated by George Municipality to investigate allegations of misconduct by its chief financial officer. 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."

Chief Financial Officer, Keith Jordaan.

Double standards
In an interview with the George Herald, De Lille said it was never her intention to draw so much attention, but she is tired of the DA's double standards. "In my own case they never even had proof of corruption. They are quick to take on other political parties, but now it happened in their own home."

De Lille said a previous article in the George Herald caught her attention and she started her own investigation. "I provided the Public Protector's office with a chronological paper trail of how it all unfolded," she said. 

According to De Lille, Old Mutual was not on the list of institutions with whom the municipality could invest. "I know they are acting against the CFO, Jordaan, but my issue is they have never acted against the councillor, and he contravened Regulation 8 of the Municipal Finance Management Act." The act states that no fee, commission or any other reward may be paid to a councillor or a director or official of a municipality or to a spouse or close family member of such councillor, director or official in respect of any investment made or referred by a municipality or municipal entity. "The speaker is supposed to act against the councillor," said De Lille. "And he didn't."

No need for investigation
In a request for comment, George Speaker Gerrit Pretorius said Cronjé received no direct benefit from any contract with the municipality. "According to information available to me, Cllr Cronjé's son is and was not accredited to conclude a contract with the municipality," said Pretorius. 

He adds that the Schröter report uses the wording "... it seems to indicate", and says the confidential FTI report which, at their own request, was not supposed to have been shared with third parties, bases their observations on allegations. 

"It does not find Cllr Cronjé (or his son) guilty. The report came with a disclaimer on its 'findings'." Pretorius furthermore said the annual report of the national Auditor General doesn't reflect on Cronjé. 

"In view of the above I stand by my original decision not to investigate Cllr Cronjé," said Pretorius.