Mandela funeral probe ordered
Damning public protector report links top East Cape officials to misuse of millions
PUBLIC protector Busisiwe Mkhwebane has pointed a finger at senior Eastern Cape officials, including director-general Marion Mbina-Mthembu, for the misuse of millions of rands earmarked for statesman Nelson Mandela’s funeral.
In a damning 300-page report released yesterday, she also found that the Nelson Mandela Bay Municipality, along with Buffalo City and other municipalities in the province, had committed financial misconduct through irregular spending in the wake of Mandela’s death in December 2013.
Mkhwebane found that the Nelson Mandela Bay metro had incurred unauthorised expenditure of R110 300 in respect of funeral-related catering.
“Even if the expenditure was authorised, it would have been irregular as it was in violation of a directive of the national Treasury and not in accordance with the MFMA [Municipal Finance Management Act],” she said in the report.
Following a Herald investigation into municipal expenditure in the wake of Mandela’s death and the mass memorial service held at the Nelson Mandela Bay Stadium in Port Elizabeth on December 13, as well as investigations by The Herald’s sister paper in East London, the Daily Dispatch, the office of the public protector began an investigation into the matter. In July 2014, then public protector Thuli Madonsela extended her probe to Nelson Mandela Bay.
Madonsela was at the time investigating the alleged irregular spending of a collective R65-million.
The Bay municipality had played a leading role in the provincial memorial service and spent money on sending officials to attend the funeral in Qunu.
It was compelled to reveal some of its expenditure after The Herald and Weekend Post lodged a Public Information Act (PIA) application for the information on February 14 2014.
This was then provided on March 24 that year.
According to a financial spreadsheet provided by the metro at the time, it racked up total expenditure of R6 038 111.08.
This included R305 750 on “loud-hailing” equipment (most service providers charging R20 000 each), T-shirts, banners for the Women’s League, PA systems for “the women’s programme”, the costs of officials’ attending the funeral in Qunu and R1 773 571.19 for the hire of the municipally owned stadium.
Mkhwebane also confirmed that a R250 000 payment into Eastern Cape premier Phumulo Masualle’s private account was among a litany of irregular transactions with money meant for the funeral.
While Masualle did not benefit from the payment – he ordered that the payment be reversed – Mkhwebane has made it clear that the transaction “was improper and constitutes maladministration”.
The provincial Department of Planning and Treasury instead opened a department account for Masualle’s use.
The funds were to enable Masualle‚ as one of the key hosts‚ to settle any costs related to the receiving of guests‚ side meetings that required special rooms and any other incidental costs while Masualle was in Mthatha for the funeral.
It is not disputed that Masualle did not benefit from this transaction, but it was found inappropriate for state funds to be deposited into his personal bank account.
Mandela’s death opened the floodgates in the province for officials to spend R330-million diverted from the infrastructure development grant.
Mkhwebane said it was shocking that funds were paid‚ at inflated rates‚ to suppliers without verification of delivery of services or goods.
Almost R6-million was paid to Victory Ticket 750 CC for transporting mourners to the memorial service‚ but the number of people ferried could not be verified.
The public protector said some of the payments‚ in one instance R10-million‚ were approved over the phone on instructions from the ANC and paid to suppliers.
Mkhwebane’s report also mentions Tshirts‚ at an exorbitant cost of more than R300 each‚ delivered to a taxi rank.
She noted that these funds‚ channelled to the Eastern Cape Development Corporation by the provincial treasury in Bhisho‚ were meant for providing running water‚ electricity‚ sanitation‚ ablution facilities‚ the replacement of mud schools and the refurbishment of hospitals.
Mkhwebane said weaknesses – such as the lack of a proper coordinated plan for state funerals‚ the lack of an operational centre where daily meetings could be held‚ and the fact that the funeral was regarded as an emergency – resulted in massive unauthorised‚ irregular‚ fruitless and wasteful expenditure.
“This weakness was explored and capitalised upon by some service providers [who] inflated prices.
“Some submitted invoices and were paid for goods and services‚ the delivery of which was not or could not be verified‚” she said.
Mkhwebane has directed Finance Minister Malusi Gigaba to request President Jacob Zuma to make a proclamation that the corruption-busting Special Investigation Unit investigate:
ý Unlawful appropriation or expenditure of public money;
ý Unlawful‚ irregular or unapproved acquisitive acts‚ transactions‚ measures or practices;
ý Intentional or negligent loss of public money by organs of state, with a view to instituting civil action for the recovery of the lost funds.
Mkhwebane also wants Finance MEC Sakhumzi Somyo to conduct an investigation into the financial misconduct of Mbina-Mthembu and to instruct the municipal managers of Nelson Mandela Bay, Buffalo City, King Sabata Dalindyebo and OR Tambo District to investigate the financial misconduct of officials of their municipalities and to take appropriate action.
Speaking on behalf of the provincial government, Sonwabo Mbananga said it would only be able to comment once it had a copy of the report.
Even if the expenditure was authorised, it would have been irregular