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Joint Statement by the Congress of South African Trade Unions and the South African Communist Party, on corruption at Ithala bank and various communities (27/05/2010)

27th May 2010

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SACP and COSATU in KZN held a meeting of officials last Sunday 23rd May 2010 to prepare for a Bilateral Meeting planned for 5th and 6th of June 2010. Other than the programme for the bilateral the meeting also dealt extensively with the press briefing held by the MEC for Economic Development and Tourism on ITHALA, assessment of the highly successful National anti-corruption march held in Durban 0n 30th May 2010 and preparation for the provincial march to be held in Pietermaritzburg at a date to be decided at the Bilateral Meeting. Other matters of interest covered in discussions were the disappearance or stealing of arms at Inanda Police Station, the removal by the MEC for Health in dealing with the management of the four Durban Hospitals, the appearance of the alleged conspirator Sizwe Mkhize for bail application at Pinetown Magistrate Court and the developments on issues of corruption and maladministration in various municipalities like Msunduzi and Mhlabuyalingana.
ITHALAGATE
Both SACP and COSATU were shocked by the announcement by the MEC for Economic Development and Tourism that the Group Chief Executive Officer of Ithala got away with a written warning for what is seen as a very serious misconduct of committing procurement irregularities on a project worth R169 million rands. This act by the board of Ithala is taken as irresponsible and a massive cover-up through misuse of authority. It is regrettable that such corruption cover-up is receiving some form of political blessing by the public announcement by the MEC. The manner in which Bhombe Chitey obtains the tender at Ithala bears all the hallmarks of a fraudulent process.
The statement of the MEC of 3rd May 2010 appears to have a number of misrepresentation of the fact of the matter. We are certain that the MEC has been misled. A glaring example is the assertion that a team (purportedly an audit task team) met Bhombe Chitey, whereas it was only the Acting Chairperson of the Board who met the company that was at the centre of investigation. There is a flood of evidence that show that employees who had committed similar or lesser offences than this one were dismissed, not one not two but more than a dozen of employees.
There is no difference between this case and the one of Cipro. They are almost the same. What the public need to know is that the GCEO was never taken to a disciplinary hearing as per the disciplinary code of Ithala. Where then does the written warning come from? Allegations are that there is a case registered with the police of the investigation officer who survive an attempt to his life on finishing the investigation on this matter. We are reliably informed that there is heavy harassment of officer or officers involve in the production of the forensic report and the case has been filed by the lawyers with Ithala. This only shows that this matter is very serious than what the public is made to believe.
Reporting on KPMG forensic investigation, it is strange and odd that KPMG found that some officials were negligent in their duties which cost Ithala millions and millions of taxpayer's money. The report then subsequently recommends that the said officers must be subjected to a disciplinary process. When such recommendation are implemented then KPMG recommend that no action should be taken. So KPMG becomes the investigator and the judge. Between KPMG and Ithala someone is covering up blatantly, who is that one? It will be interesting to investigate further the game that is being played here. Again why do we have a decision on KPMG report when up to now it has never been tabled either at the audit committee and the board who surely might have authorize the investigation? It is also strange that one of the officers mentioned in the report was promoted to a leading position in spite of serious accusation against him.
It is pity that the MEC has compromised himself by making a prematurely intervention in this matter. The accounting authority in this matter is Ithala Board as per PFMA, NOT THE MEC. Enquiries were directed to the Board not the MEC. The conduct of the Acting Chairperson in this matter left much to be desired and must be investigated. It is in order that this report must be submitted to the auditor general with immediate effect and be made public.
SACP and COSATU therefore calls for a full blown forensic investigation by the office of the Auditor- General into everything raised by SACP and the immediate suspension of the Acting Chairperson of the Board and the Group Chief Executive Officer. We are therefore willing to meet the MEC so as to clarify the facts about this saga. We have confidence on our government and their commitment in the fight against corruption and good governance.
MSUNDUZI MUNICIPALITY
Credit must be given to the MEC for Co-operative Governance and Traditional Affairs, Hon N Dube, the Mayor and the Administrator for the progress so far done at Msunduzi Municipality. However it is shocking to learn at the extent of corruption and collapse of governance in this municipality. The Administrator need to be applauded for stopping the meter reading contract and doing everything to exposed the ghost employees.
But we still want to hear of what is being done by the reported cases of some councilors who happened to have tenders or doing business with the municipality. The good work that has been done so far may run the risk of being discredited if it is seen as being bias against the workers. Where are the politicians in all this? From where were these workers getting instructions? It may also be necessary to start to investigate the audit reports of the past five years, they may be revealing on the extent of damage the municipality has suffered. There happened to exist a mafia-like grouping very professional that might have been at the centre of the municipal plunder. Therefore dealing with workers alone will not solve the problem.
DISAPPEARANCE OF ARMS AT THE POLICE STATION
COSATU and SACP would like to praise the police for the job well done in quickly apprehending suspects for the disappearance of the arms at Inanda Police Station. This act confirms our fears that the fight against corruption and crime is going to be difficult because institutions and persons responsible for fighting against crime are infested with criminals and corrupt elements. It is therefore encouraging to witness such quick and efficient response by the police. COSATU and SACP call upon members of the public to help the police in recovering the arms as soon as possible before they land in the hands of dangerous criminals who will terrorise the community.
REMOVAL OF HOSPITAL MANGERS AT ETHEKWINI MAJOR HOSPITALS
COSATU and SACP appreciate the swift action by the MEC for Health Dr Sibongiseni Dlomo in addressing the sad state of affairs in these hospitals. But both organization strongly condemn the naked violations of the rights of the affected individuals. Rights of workers are like law and the constitution there is no excuse for violating them. They are sacrosanct.
COSATU and SACP will be always be ready and willing to work with the MEC in dealing with the appalling situation in these hospitals.
PLOT ACTIVITIES OF SIZWE MKHIZE
Both COSATU and SACP agreed that the activities of Sizwe Mkhize need to be investigated beyond the charges they are currently facing. It is clear that there are forces working through the likes of Sizwe Mkhize and others who hate to see the good progress and development currently underway in the province as well as healthy working relationship of the Alliance under the leadership of the Premier Cde Zweli Mkhize. These wedge-drivers are using anything they can lay their filthy hands on to ferment conflicts among comrades and leaders of the alliance in the province and nationally. There is a similarities between the conduct of Sizwe Mkhize and James Nkambule of Mpumalanga. What we know now is a series of political terror and assassinations engulfing Mpumalanga, the assassination of Bhomba Ntshangase being the recent case in point. It is for this reason that COSATU and SACP are now calling for a judicial commission of inquiry to probe all the plots and conspiracies that have surfaced in Kwazulu Natal.

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