28 September 1998
The Mpumalanga Department of Local Government and Housing task team investigating the allegations of unlawful financial schemes in the Ekangala TLC, submitted its report to the MEC for Local Government and Housing Mr. Craig Padayachee.
Mr. Bruno Vilane who is the Director of Local Government Management Services division stated in his report that no funds were withdrawn from any financial institution hence all parties agreed to cancel all agreements so that proper procedures can be followed. According to the task team's report the Promissory notes amounting to $10m(U.S.) were to be used for housing development.
There was no council resolution approving the agreement but, however, the council had mandated a section 59 committee to facilitate the deal. The council and all parties agreed to nullify the agreement and begin a process of approaching housing delivery at Ekangala in a legalised and well-informed manner.
Accepting the report MEC for Local Government, Housing and Land Administration said, "In as much as I condemn the process followed by the Local Council, I also realise that the intentions around the agreement were good and would like to appeal to all our Local Authorities to make use of our good provincial leadership in seeking advice where they do not understand policies. We are one of the luckiest provinces with a Premier who has good legal and constitutional background. This then does not allow us to make policy mistakes." He said.
The matter has since been referred to the local authority for disciplinary action against the said official and councilor in terms of the Local Government transitional act.
Issued by Communication Services Department of Local Government and Housing Contact Person: LEON A MBANGWA Tel: 013 755 4810