Media statement by Minister Sibusiso Ndebele on the voluntary returning of the gift received from Vukuzakhe emergency contractors, May 19 2009
The recent public discussion around the S500 Mercedes Benz, valued at more than R1 million, that I received as a gift from Vukuzakhe emerging contractors last Saturday, 16 May 2009, refers.
I wish to announce that after careful consideration of this matter and in discussions with my family, I have decided to voluntarily return the S500 Mercedes Benz and the two cattle that I received from Vukuzakhe emerging contractors in KwaZulu-Natal at a function held in Pietermaritzburg last Saturday, 16 May 2009. The Executive Code of Ethics states that a member who has received in the course of his/her duties a gift with a value of more that R1 000 must request permission from the president to retain or accept the gift. If permission is granted, the member can retain or accept the gift but must disclose particulars of it in terms of the Code.
Despite this provision in the Executive Code of Ethics, I must emphasise, I never knew about these gifts, never solicited them and never expected them. In addition, when this whole function was mooted by the emerging contractors, nobody knew where I was going or whether I would be appointed Minister of Transport. I would also want to state that we do not have any personal or private financial or business interest with the Vukuzakhe emerging contractor programme which would constitute any conflict of interest on our part. In addition, we have not solicited or accepted a gift or benefit that is in return for any official favours from us or been in anyway improperly influenced by any gift that may have been given to us.
I was appointed MEC for Transport in KwaZulu-Natal in 1994. As part of our departmental programmes, in 1996, we established an emerging contractors' programme for road construction called Vukuzakhe. The emerging contractors were at the time handling projects of about R50 000. Currently, some of them manage projects from R10 million up to R50 million. There are about 30 000 Vukuzakhe emerging contractors and, in the last ten years, government has allocated contracts close to R10 billion to these contractors. I also confirm that Vukuzakhe is a government programme much like the Expanded Public Works Programme it now forms part of, and not a private legal entity that presumably I would have business or financial interest or benefit from.
I was MEC for Transport from 1994 to 2004. From 2004, I assumed the Premiership of KwaZulu-Natal, an office I held until the 5 May 2009.
Over the last few months, I have been congratulated by several individuals and organisations for my contribution as both MEC for Transport as well as premier. Among the people who congratulated us and acknowledged the work we did as part of the government of the province of KwaZulu-Natal were the emerging contractors, who benefited from the Vukuzakhe programme I was associated with when still MEC for Transport from 1994 to 2004.
The Vukuzakhe contractors approached me before the 2009 elections and sought a date where they could hold a function in my honour. I did advise them that I would prefer such an occasion to be held after the elections as we were all busy with the election campaign programme.
After the elections, they approached me again and I gave them the date of 16 May 2009. I attended the function on 16 May 2009, with my wife, which was held at Woodburn Stadium in Pietermaritzburg. I was really shocked when they presented me with an S500 Mercedes Benz valued at about R1 million. In addition, some taxi operators who had apparently asked to also participate in the programme gave us two cattle.
To this end, I sought guidance from The Presidency, the Secretary of Cabinet as well as the Secretary-General of the African National Congress (ANC) as I could not find precedence relating to how one can handle a gift of such magnitude.
I am aware that there is a process in government of handling gifts and conflicts of interest which is as follows:
On conflict of interest, clause three of the Executive Code of Ethics requires a member to declare any personal or private financial or business interest that the member may have in a matter that is before the Cabinet, Cabinet Committee or in relation to which the member is required to take a decision. In addition, a member must withdraw from proceedings of Cabinet or Cabinet Committee considering a matter in which a member has any personal or private or business interest, unless the President decides that the member's interest is trivial or not relevant.
On gifts, clause four of the Code prohibits a member from soliciting or accepting a gift or benefit which is in return for favours received from the member in his or her official capacity or constitutes improper influence on the member or constitutes an attempt to influence a member in the performance of the member's duties. Clause 4.2 states that when a member, in the course of the member's duties, has received or has been offered a gift with a value of more than R1 000, the member must request permission from the president to retain or accept the gift. If the permission is granted, the member may retain or accept the gift, but must disclose particulars thereof (in terms of financial disclosure procedures of the Code). Where such permission has not been requested or granted the member must either return the gift or decline the offer or donate the gift to the state.
On Monday the 18th at 11am, within hours of the first working day after the presentation of the gift, I sent a letter to the President of South Africa (as required by Clause 4.2 of the Executive Ethics Code) and the Secretary General of the ANC.
I advised his Excellency, the President, that I have received the gift of an S500 Mercedes Benz valued at R1 million and two cattle from Vukuzakhe emerging contractors in KwaZulu-Natal.
After consultation with the President of South African and the Political Office Bearers of my political party, the ANC, who advise me to follow the procedures stipulated and after due consideration, I have, nevertheless, decided to return the gift to the Vukuzakhe programme. I have suggested that they dispose of this gift valued at about R1 million, for the benefit of others participating in the emerging contractors programmes through the Construction Industry Development Board, establish a training fund to assist other emerging contractors in the country through programmes such as the Contractor Growth Development Programme.
I must indicate that this matter has created an unwelcome interruption and derailment of my programme as a newly appointed Minister of Transport, as I have urgent matters in my portfolio to deal with. The Executive Code of Ethics provide for disclosure to be made within 60 days and I since the gift was first revealed to me, have taken about 72 hours to bring the matter to an end. With preparations for the FIFA Confederation Cup which is to be held in 26 days in Johannesburg, Tshwane, Bloemfontein and Rustenburg we have key to focus on ensuring this dry run for the 2010 FIFA World Cup is successful as well as the infrastructure development at airports, roads and the rail sector, road traffic management and further reducing the carnage on our roads and indeed other transport priorities.
On the Bus Rapid Transit (BRT) system, I have been briefed on the matter and will this afternoon be meeting the political leadership and teams of the BRT implementing cities of Johannesburg, Tshwane, Cape Town and Nelson Mandela Bay for the first time to discuss government's further consultation with the taxi industry to which both the president and I are committed.
I thank you
Issued by the Department of Transport, May 19 2009
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