ANC municipal extortion: Precedent by Public Protector proves mayor's actions illegal

The Democratic Alliance (DA) finds it remarkable that ANC executive mayor of Hessequa, Christopher Taute, sees "nothing wrong" with breaking the law. Yesterday, Mayor Taute admitted that he sent letters to local businesses in his official capacity as mayor to solicit funds for the ANC. In that letter (a copy of the original Afrikaans letter is available for download) he told businesses:

"As you currently have contracts with our municipality - which were made possible by this ANC-run council, I would like to make a friendly request that you contribute a donation to the ANC for the election campaign, in order to continue building on your good relations with this ANC-run council."

This "friendly request" amounts to political extortion because he intimates that the companies' "good relations" with the "ANC-run council" - which awards them municipal tenders - depends upon their generosity to the ANC. This, in the words of the Public Protector's office, which has already ruled on a similar matter in the Free State and has thus created a precedent, is "unlawful, improper and highly irregular".

The DA has written to the Public Protector today to investigate the Hessequa mayor's actions. This is in addition to our laying of criminal charges against the mayor at Cape Town Central Police Station yesterday. A copy of our letter to the Public Protector follows below.

The Public Protector established the precedent in this matter in 2003, after the acting municipal manager of the Dihlabeng Local Municipality wrote to businesses in the Bethlehem area of the Free State, stating:

 "(t)he ANC Councillors requested that we approach you on behalf of the ANC and ask for a donation to assist them financially to enable them to make a success of their Anniversary Celebrations".

Upon investigating (case number 0024/03), the Public Protector made these key findings, as stated in its 2003/4 Annual Report:

• The request for a donation for the ANC that was initiated, drafted on an official letterhead and distributed by the Acting Municipal Manager and the Acting Financial Manager to local businesses in the area of the jurisdiction of Dihlabeng, was unlawful, improper and highly irregular;
• it compromised the integrity and credibility of the Municipality and was not done in its best interest; and
• the conduct of two officials involved breached the Code of Conduct of Municipal Staff Members.

Despite this legal precedent - and common sense - the Western Cape ANC and Mayor Taute yesterday defended the Mayor's actions. The ANC's response revealed that the party and its members conflate the role of the party with the state. They misunderstand the constitutional separation of these bodies and the good reasons for this separation. By seeing "nothing wrong" with using the official tools of government to achieve party-political ends, the ANC fails to grasp the very different roles that the party and the state play, especially for citizens and local businesses.

As the Public Protector's ruling from 2003 shows, the Mayor's actions are a serious breach of ethical, administrative and legal standards. This is not the way one goes about raising funds. The fact that he sees "nothing wrong" in using his government position to hustle money from businesses for his party - stating that this is how companies can maintain "good relations" with "this ANC-run council" - suggests that this is what citizens and companies can continue to expect from the ANC where it governs.

Letter to the Public Protector:

The Democratic Alliance Federal Chairperson
P.O Box 15
Cape Town
8000
Tel: (021) 403 3560
Fax: (021) 403 2690
E-mail: [email protected]
1 February 2011

Office of the Public Protector
Private Bag X677
Pretoria
0001

Re:  Request for an investigation into breaches of the Municipal Systems Act, the Municipal Finance Management Act and the Prevention and Combating of Corrupt Activities Act by the Executive Mayor of Hessequa Local Municipality

Dear Adv. Madonsela
 
It has come to my attention that the Executive Mayor of Hessequa Local Municipality in the Western Cape has sent letters to local businesses on an official letterhead soliciting them for donations to the African National Congress. He did this in his official capacity as Mayor, not as a party member. The letter implies that these businesses, which have been awarded municipal tenders in the past, owe the ANC for winning those tenders and should give donations to the party so as to maintain "good relations" with the council for future tenders. Here is a copy of the letter (translated from Afrikaans):

Hessequa Municipality
Office of the Executive Mayor

2011-01-20

Dear Manager/Owner,

I herewith wish to request your company for a donation to the ANC for our election campaign. As you currently have contracts with our municipality - which were made possible by this ANC-run council, I would like to make a friendly request that you contribute a donation to the ANC for the election campaign, in order to continue building on your good relations with this ANC-run council. If you would like to make a donation to our election campaign, it would be appreciated if you could do so by cheque, made out to the "ANC."

Best wishes
CP Taute
Executive Mayor

I believe that this constitutes a breach of:

Item 11D, Intervention in Administration, of the Code of Conduct of Councillors as contained in Schedule 1 of the Municipal Systems Act - which states that

‘A councillor may not, except as provided by law- encourage or participate in any conduct which would cause or contribute to maladministration in the council.'

The Municipal Finance Management Act (MFMA) -  which states (Section 118) that:

'No person may-
a)  interfere with the supply chain management system of a municipality or municipal entity; or
(b) amend or tamper with any tenders, quotations, contracts or bids after their submission.

173. Offences

(5)  A councillor, an official of a municipality or municipal entity, a member of the board of directors of a municipal entity or any other person is guilty of an offence if that person deliberately or in a grossly negligent way-
(e) contravenes a provision of ... section 118 ...;

174. Penalties

A person is liable on conviction of an offence in terms of section 173 to imprisonment for a period not exceeding five years or to an appropriate fine determined in terms of applicable legislation.

And the Prevention and Combating of Corrupt Activities Act - which states in section 3 that ‘Any person who, directly or indirectly-

(a) Accepts or agrees or offers to accept any gratification from any other person, whether for the benefit of himself or herself or for the benefit of another person; or
(b) Is guilty of the offence of corruption.

7.  Offences in respect of corrupt activities relating to members of legislative authority.

(1) Any-
(a) Member of the legislative authority who, directly or indirectly, accepts or agrees or offers to accept any gratification from any other person, whether for the benefit of himself or herself or for the benefit of another person; or
(b) ... ,is guilty of the offence of corrupt activities relating to members of the legislative authority.

Furthermore, the Public Protector has already established precedent on this matter back in 2003 (case number 0024/03) when the acting municipal manager of the Dihlabeng Local Municipality in the Free State sent letters to businesses in Bethlehem requesting them to donate funds to the ANC for an anniversary party. According to your 2003-04 annual report, the key findings of that investigation were that:

• The request for a donation for the ANC that was initiated, drafted on an official letterhead and distributed by the Acting Municipal Manager and the Acting Financial Manager to local businesses in the area of the jurisdiction of Dihlabeng, was unlawful, improper and highly irregular;
• it compromised the integrity and credibility of the Municipality and was not done in its best interest; and
• the conduct of two officials involved breached the Code of Conduct of Municipal Staff Members.

Your office has the necessary powers to investigate this matter. I believe this breach of law is a serious offence that must be investigated and resolved, as your office has done in the past. I kindly request that you carry out an investigation into this crucial issue of local government ethics. Thank you.

Yours sincerely

Dr. Wilmot James, MP
DA Federal Chairperson

Statement issued by Dr. Wilmot James MP, Democratic Alliance Federal Chairperson, February 1 2011

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