THE 22ND MEETING OF THE EXECUTIVE COUNCIL OF THE GAUTENG PROVINCIAL GOVERNMENT

Issued by: Gauteng Provincial Government

7 September 2000

Investigation into the disconnection of electricity in Randfontein

The Gauteng Provincial Executive Council meeting yesterday considered a report on the findings of an independent investigation instituted by the MEC for Development Planning and Local Government into the disconnection by Eskom of the electricity supply in Randfontein on 20 June 2000.

On 26 June, the MEC appointed Advocate Peter Maake in terms of the Local Government Transition Act to investigate whether any council member, the Chief Executive Officer (CEO) or any employees of the Randfontein Local Council acted unlawfully or were responsible for any act or omission which resulted or may have resulted in fraud, corruption or maladministration that subsequently led to Eskom disconnecting the electricity supply to the area.

Among the findings of the investigation were that:

• the Randfontein Local Council had failed to present Eskom with an acceptable proposal to settle the arrear amount
• The CEO and the Town Treasurer are to be blamed for not giving Eskom an acceptable proposal to settle the arrear account prior to the disconnection of the electricity supply
• Both the CEO and the Town Treasurer were fully aware that Eskom required an acceptable repayment plan to avoid the electricity cut-off
• The CEO had failed in his duty to timeously inform the Council of the matter pertaining to the arrear account with Eskom
• The administration of the Council was paralysed as a result of conflict between the CEO and certain councilors
• The Council was in a financial crisis. Among the recommendations of the independent investigator were that the MEC intervene in the Randfontein Local Council in terms of section 139 (1) and (2) of the Constitution and that a forensic investigatioe instituted into the appointment of consulting services and the appointment of staff members.

Section 139 (1) of the Constitution relating to provincial supervision of local government, states that "when a municipality cannot or does not fulfill an executive obligation in terms of legislation, the relevant provincial executive may intervene by taking any appropriate steps to ensure the fulfillment of that obligation". This includes issuing a directive to the Municipal Council to take any steps required to meet its obligations and assuming responsibility for the relevant obligation in that municipality to the extent necessary.

The Executive Council regards it as imperative that proper, effective and efficient administration in the Randfontein Local Council is restored in order to ensure sound administration, good governance and effective service delivery to all the inhabitants of the Greater Randfontein area and that decisive action was needed to effect this.

The Executive Council therefore resolved that the Department of Development Planning and Local Government should provide management support to the Randfontein Local Council to ensure the effective and efficient administration of the Council.

The Executive further resolved that:

• the report of the investigation be made available to the Randfontein Local Council with a directive from the Executive Council in terms of section 139 (1) and (2) of the Constitution, to suspend the CEO and to institute disciplinary proceedings to be the actions of the CEO.
• the report of the investigation be made available to the Gauteng legislature.
• a full-scale forensic investigation be instituted to probe inter alia the appointment of consultancy services and personnel from August 1999 to June 2000 and any other matter deemed necessary by the MEC.

The Executive remains committed to ensure that it continues to work in close cooperation with local government in the province to ensure the continuous provision of effective and efficient services to the people of Gauteng. Tsutsumani village The Executive Council received an updated report from the MEC for Housing on the current status of housing developments in the Far East Bank, Alexandra, including Tsutsumani Village. It was agreed that the MEC for Housing in cooperation with the local authorities will take the necessary steps to speed up the allocation of housing units not yet allocated. The Executive Council reaffirmed a public commitment by the MEC to address concerns of alleged irregularities in the allocation of houses. In this regard, the Executive urged that the current investigation by the Public Protector on the matter is conducted in a manner that is accessible and enables government to act speedily to address concerns.

The Premier and the MECs for Housing and Safety and Liaison will conduct an on site inspection of the housing developments on Monday 11 September 2000.

For more information contact:
Annette Griessel
Tel: 011 355 6859
Cell: 082 563 3614

Thabo Masebe
Tel: 011 355 6036
Cell: 082 410 8087