Issued by: The Heath Commission of Inquiry
The Judicial Commission of Inquiry into matters relating to State and parastatal property in the Province of the Eastern Cape - in short the Heath Commission - is investigating numerous cases which will eventually result in millions of rands pouring back into the State coffers.
The Commission, with Judge Willem Heath as Chairperson, started its work in June 1995. The geographic jurisdiction of the Commission is extremely large and includes both the erstwhile Transkei, Ciskei and Eastern Cape.
AVERT NATIONAL SALARY CRISIS IN GOVERNMENT SERVICES
A potential loss of at least R8 billion by the National Government was curbed in one of the most prominent matters already successfully investigated in the year that the Commission has been in operation. This information came to the surface after the Commission issued an Interdict in December 1995 stopping the alleged unlawful promotion and payment of the increased salaries attached to these self implemented promotions of 92 officials in the Auditor General's Office in Bisho.
The National Auditor General as well as representatives of various departments of the National Government referred the matter to the Commission. Allegations were made on strong authority that whatever the outcome was to be of this investigation, it would be adopted by the employees in the offices of the Auditor Generals in all the former homelands and in the National Government and other Government Departments.
At the time when the Interdict was issued, an amount of approximately R2,7 million was already at stake. A thorough investigation was conducted and the matter was set down for hearing during March 1996. Intensive discussions between the Commission and the legal teams representing the National Government and various groups in the Auditor General's Office in Bisho preceded the hearing in order to find a speedy resolution of the matter.
Of the first day of the hearing a settlement was reached by the parties and the employees abandoned their promotions. The terms of this settlement were in fact implemented and the matter was resolved.
The Committee which implemented the rationalization of the Bisho Office has since reported that payment of the amount of R1 859 412-00 will be recovered from the employees.
BUSINESS SITE BARGAIN
During 1995 a complaint was received that a valuable business property in Umzimkulu was sold by a Government Official to Mrs Stafford in 1994 for an amount of R2 000-00. At the hearing of the case the Commission established that the value of the property was approximately R125 000-00. The Government Official relied on an old policy to justify the price of R2 000-00. The Commission issued an Order that the property be returned to the Government and the Contract was set aside. An Appeal to the full bench of the Supreme Court is pending against this finding.
The Commission has commenced an investigation into property acquired by Mr George Matanzima and old President Kaizer Mantanzima. On the information at its disposal at this stage there are three farms involved and approximately 18 other properties either received as donations or other alleged irregular transactions. Substantial progress has already been made and the Commission has issued an Interdict against the disposal of the property by the two Matanzimas pending the investigation.
EXPENSIVE EXPENSES
A trial will be set down shortly dealing with an allegation that the amount of approximately R1,1 million claimed for inter alia traveling and accommodation expenses and which was paid during the time that Brigadier Gqozo was Head of the Government to Mr van Rensburg of Multi-Media Services Northern Office Supplies of Pretoria, was not due and payable. A Notice has already been served on Mr van Rensburg informing him that the matter is under investigation.
GIVE AWAY FARMS IN CISKEI
In the old Ciskei area the sale of 62 farms is under investigation and another 50 will be investigated. The hearing of evidence regarding three farms purchased by Brig O J Gqozo, former Military Chief of Ciskei, two of which were acquired during the time when he was Head of the Government, have reached an advanced stage. The trial has been halted temporarily as a result of a Supreme Court Application, lodged by his Legal Representatives, applying for a Declaratory Order by the Court that the Commission's powers and Terms of Reference are invalid as the Premier did not have the power to promulgate regulations giving such powers to the Commission. Many of the cases investigated by the Commission are strongly contested because of the sensitive issue of ownership. In another matter where three Senior Officials of the former Ciskeian Government acquired State owned farms the hearing has progressed considerably.
MAYBE A SYNDICATE?
The investigation of theft of cheques and misappropriation of State Funds by employees and other people, from the Department of Public Works involving an amount of R120 000-00 has been completed. The cases are ready for the hearing of evidence. The possibility that a syndicate might be involved is investigated. One of these cases has already been referred to the local Attorney General to deal with the criminal element thereof.
TRANSKEI MECCA
Notwithstanding an Interdict issued by the Commission towards the end of 1995 prohibiting transactions to sell State property at the Transkei Coastal Area and prohibiting any development on these sites, development continued in various cases.
The National Government appointed a Task Group to investigate matters relevant to nature conservation at the Transkei Coastal Area, the contravention of legislation pertaining thereto and also to design an overall plan for future development to preserve the whole area and specifically the very sensitive zone of 1000 meters.
Information was received that the local Chiefs allegedly disposed of sites within this 1000 meters zone for nominal amounts. The Interdict was served on approximately 60 people claiming to be "site owners" and it was widely publicized. The majority of interested parties who obtain sites in the coastal area are people not permanently resident in the area, e.g. from Durban and Johannesburg.
The Investigators of the Commission visited twice this almost inaccessible area by helicopter and have found on their second trip that certain cottage owners were blatantly disregarding the Interdict. One owner was caught in the act of effecting building operations and a criminal charge of Contempt of Court has been laid with the Police.
The investigation of approximately 100 sites is almost completed. The first case was due to be heard on 18 June, but t is to be postponed by agreement. This case involves approximately 12 parties. The other case will probably include 30 alleged site owners by agreement. This matter is due to be heard on 22 July 1996.
PROPERTY BARGAINS
In Umtata and Butterworth at least 400 residential and business erven under the jurisdiction of the former Transkei Development Board - now the Eastern Cape Development Board - are being investigated by a team of Investigators of the Commission. This investigation is expected to take considerable time, due to the nature and extent thereof. A house in Umtata acquired by Dr M Mpehle, former MEC, is also under investigation.
HIGH PRICE FOR OVERDRAFT
The Bank of Transkei (which is part of the ABSA Group) allegedly overcharged the former Transkei Government with interest on overdraft facilities. This allegation resulted in an intensive investigation and if the allegations are correct the excess interest claimed and paid by the Transkei Government could result in at least a seven figure amount. Many problems were experienced by the Investigator to obtain all the relevant documentation from the Bank.
XMAS CARS
Loans granted to Senior Officials in the Civil Service in terms of the Motor Financing Scheme are under investigation and the Commission has already opened approximately 600 files in the old Ciskei and has not even started investigating the same Scheme in the former Transkei or the rest of the East Cape. Investigators of the Commission have been contacted in connection with similar cases in Kwa-Zulu Natal.
The Commission has already disposed of eight cases. In the majority of these cases after evidence was tendered by the Commission and in some cases by the affected parties, concessions were made by the affected parties and they agreed to repay amounts of money misappropriated by them in terms of the Scheme, or to rectify the irregular transactions.
PROSPERITY IN SUGAR
Property under Lease from the former Transkei Government by North Pondoland Sugar Company Ltd and subject to 192 small farmers was investigated. The Commission's finding was that although the Lease amount being paid by North Pondoland Sugar Company Ltd to the Government is relatively low, the benefits flowing from this Lease Agreement to the rural farmers in Transkei as far as creation of work opportunities and generating an income are concerned, is so substantial that the Company should be allowed to continue with its work. This Company is an excellent example of what can be done for the upliftment of people and to teach them to be productive and self-supporting.
EXPENSIVE COOLDRINKS
Various cases have been reported to the Commission where it is alleged that the State was defrauded. In the first case it is alleged that the Principal of a College in Transkei opened a secret Bank Account and transferred money from the accounts of the College to this account totaling approximately R148 000-00. Before these facts came to light, the Principal was promoted to the position of Director. The explanation for opening the account is that it facilitated buying cooldrinks for the Staff.
Another case is the payment of fictitious invoices for the supply of books and stationery to the Department. When the matter was handed to the Commission, the information was that an amount of approximately R250 000-00 was involved. As the investigation proceeded. it was discovered that it is approximately R1 million.
The top structure of this Department is adamant to remove all corruptive elements from the Department.
PRINCIPLES FOR SUCCESS
The Commission has the powers to investigate a wide spectrum of matters. The investigation is conducted in such a manner that the cases are ready and fit for the resolution of issues and te settlement of disputes similar to the position in civil cases in a Court of Law. The next step is then the hearing of evidence to resolve the civil issues. Depending on the evidence a transaction can be set aside and restitution can be ordered. The effect is speedy resolutions of issues arising from the investigations. Depending on the investigation required and the availability of legal representation of affected parties, a matter can be ready for the hearing of evidence within a number of weeks for a few months.
Another advantage of the investigations conducted, is that if the investigation discloses an offence or crime, the evidence will also be available for a criminal trial.
The Commission depends on information from various sources to perform its work. Any person with relevant information is invited to contact the Secretary, Mr N Samana or any other Investigator at the Commission at (0433) 33128/9. The other members of the Commission are an experienced Magistrate, Mr I Kitching, who is an additional member with the Chairperson, two Chief Investigators Adv G Visagie and Mr D Mnqaba, and a team of twelve Senior Police Officers.
The Commission was initiated by the MEC for Public Works, Mr Mhlahlo and appointed by the Premier, Mr Raymond Mhlaba of the Eastern Cape and was brought into being by Proclamation 15/1995, which was published in the Provincial Gazette No. 72 Vol 2, dated 14 June 1995.