The FF Plus in Gauteng has requested the MEC for local government in Gauteng to urgently launch an investigation into the alleged irregularities and maladministration in the DA controlled municipality of Midvaal in Gauteng .
This request is being directed in terms of Section 106 of the Municipal Systems Act to hand a written notice to the Midvaal Municipality and to launch an investigation into issues which is pointed out in the FF Plus' document. In the document allegations of maladministration, fraud, corruption and other serious malpractices are made which have been occurring since October 2005 and is still continuing.
Various reports on alleged maladministration have in recent times appeared in the media. It is a disgrace that an opposition party which is in control in a specific municipality allow such malpractices. This was the comment of Mr. Jaco Mulder, MPL and FF Plus leader in Gauteng.
The worst part of it all is that the leader of the DA and Premier in the Western Cape , Ms. Helen Zille, calls for clean administration on public stages and state that DA controlled municipalities are free of corruption. Ms. Helen Zille and other senior leaders in the DA has for some time been aware of the malpractices in the Midvaal municipality but neglects to act. The DA has rather opted to suspend the whistle-blowers and tried to cover the issues this way.
Mr. Kobus Hoffman, former member of the mayoral committee in Midvaal and other officials have been suspended and victimised after they started asking questions about irregularities in the council. The FF Plus acts as a service delivery watchdog and will protect the interests of taxpayers in South Africa at all costs.
The Public Protector, the SAPD and the Law Society are all busy with their own investigations with regards to these practices.
Text of letter from the Freedom Front Plus to the MEC for Local Government and Housing, Gauteng, November 12 2009:
November 12, 2009
The MEC for Local Government and Housing
Gauteng Province
37 Sauer Street
Bank of Lisbon building
9th Floor
Johannesburg
2107
Dear Sir,
MALADMINISTRATION IN THE MIDVAAL LOCAL MUNICIPALITY
We have been instructed and mandated by Freedom Front Plus in Gauteng and a former councilor of the Midvaal Municipality, Mr Kobus Hoffman, to address this letter to you.
1. The purpose of this communication to you as the MEC for Local Government in Gauteng, is a request for you to exercise your discretion in terms of the provisions of Section 106 of the Municipal Systems Act by serving, by written notice, on the Council of the Midvaal Local Municipality with a request to provide you with the information and to initiate an investigation the matters raised in our letter, relating to issues of alleged maladministration, fraud, corruption and a variety of serious malpractices that has occurred, since October 2005 and is continuing to occur in the Municipality until today.
The historical context and basis for this request
2. On or about 6 October 2005, one Cornelius Gregorius Pypers, a local businessman and member of the Midvaal Community, listed a number of serious concerns to a national office bearer of the Democratic Alliance (James Selfe) in a letter on behalf of a number of local residents and businessmen from the Midvaal local community.
3. The concerns raised by Pypers included: Issues of maladministration, alleged fraud, alleged corruption, conflict of interest and intimidation and victimization by the Senior Management of the Municipality. For ease of reference the Pypers investigation will hereinafter be referred to as "the Pypers investigation".
4. Pypers successfully opposed a High Court application for an interdict brought by Attorney Odendaal under case number 08/20738 in the Southern Gauteng High Court. (The Pypers investigation reports shall be served on you in a bundle of documents, properly indexed and paginated, the moment you have acceded to our client's request).
5. At the time of the first disclosure, the Midvaal Local Municipality, was managed by the then Executive Mayor, Marti Wenger, the then Municipal Manager, Mr. Barry Poggenpoel, the then Chief Financial Officer, Mr. A.S.A de Klerk, which is the current Municipal Manager, the then Speaker, Mr. Timothy Nast of the Municipality and who is the current Executive Mayor.
6. As a result of the Pypers disclosure, the Midvaal Council instructed the then Municipal Manager, Mr. Barry Poggenpoel, in November 2005 to launch an investigation into a number of perceived irregularities, criminal actions and omissions. A forensic auditor, Mr. Frik Kitching conducted the investigation on behalf of the Municipality and shall hereinafter be referred to as "the Kitching and Poggenpoel investigation".
7. The Kitching report was not made public and was intentionally withheld from Pypers and the DA Caucus, as well as from the Midvaal Council by Wenger, De Klerk, Nast, Hartman and Odendaal. (The Kitching investigation reports are in possession of the Municipal Manager, A.S.A de Klerk, as the custodian of documents by law).
8. Upon receipt of the findings and recommendations of Mr. Kitching it was recommended inter alia, that the then CFO, Mr. de Klerk, now Municipal Manager, be suspended. The then Municipal Manager, Barry Poggenpoel's services were summarily terminated by Wenger, in collaboration with De Klerk and Odendaal. The Kitching / Poggenpoel investigation were manipulated by Wenger, Odendaal, Nast and De Klerk, to the extent that the investigation did not include the actions of Wenger or Odendaal or De Klerk, but focused rather on senior officials of the Municipality and Mr. Pypers.
9. Pypers continued to raise concerns, inter alia, relating to Odendaal's role as sole attorney and auctioneer, from October 2005 to date and against Wenger's corruption and the Speaker's (Nast) failure to investigate the concerns raised by Pypers. The second investigation hereinafter referred to as "the Speaker (Nast) investigation" was conducted without due process and by Nast committing actions by protecting Odendaal, Wenger and De Klerk and by ignoring Pypers. In essence Nast acted ultra vires his position of authority as Speaker. His findings were made known on 20 November 2008, without making it public and without affording Pypers a copy thereof. (The Speaker's investigation reports are in the possession of the Municipal Manager as the custodian of documents and are partly covered in the Hoffman investigation documents, referred to below).
10. As a result of the unsatisfactory "independent investigation" by the Speaker (Nast), Pypers approached our client the DA Councillor Kobus Hoffman, on the 9th of April 2008 and pleaded with him to launch a new investigation of corruption by Odendaal, Wenger, Nast and De Klerk.
11. After establishing that Nast has completed his "investigation" in December 2008 and surprisingly found "no evidence of wrongdoing", our client Mr Hoffman, commenced with his own investigation, hereinafter referred to as "the Hoffman investigation".
12. Hoffman, as a member of the Mayoral Committee (MMC), started to investigate the reason why Odendaal was the only Attorney for the Midvaal Municipality for the past 30 years. He instructed the HOD's to draft a new tender proposal based on a "panel of Attorneys approach" when he was abruptly called in, rebuked and dismissed by the then Executive Mayor, Marti Wenger, when she stated "I've consulted with the top structure of the DA and it was decided that your position at MMC will no longer be required" and "I cannot protect you any further..."
13. Hoffman's dismissal as a member of the Mayoral Committee was done on the demand of attorney Odendaal, the chairperson of the DA Region.
14. He thereafter continued to obtain a protected disclosure from the Director of Finance, Ralie Poggenpoel, concerning irregular dealings with land by Odendaal, which he has done with a number of donated erven, with the assistance and permission by Nast and De Klerk. Hoffman thereafter proposed a vote of non-confidence, in the foursome Odendaal, Wenger, De Klerk and Nast, at the DA Caucus on 6 February 2009.
15. Hoffman thereafter continued with his investigation by launching the investigation at the Law Society of the Northern Provinces and the National Public Protector and the leader of the Democratic Alliance: Helen Zille by delivering by hand, copies of a bundle containing affidavits and annexures, to Caucus Councillors, Internal auditors - Connaughton, Miller and Smith, and the Provincial DA leadership -Messrs Walters and Moodey. (The Hoffman investigation report properly indexed and paginated shall be hand delivered to you as an annexure to this communication on your request).
16. Because of the refusal and failure by Nast and De Klerk, to take any action against Odendaal and Wenger, both Pypers and Hoffman then laid criminal charges against the foursome. The net result of the Hoffman investigation was Hoffman's own suspension from the DA Caucus and his termination as a Councillor of the DA in the Midvaal Council (manipulated by Nast), on the request and instance of Odendaal, Wenger, Nast and De Klerk and to a lesser extent Hartman.
17. The Municipal Manager, De Klerk, mainly as a result of the pressure placed on him by Pypers and Hoffman and obviously from Nast, likewise reacted after the Protected Disclosure of Ralie Poggenpoel by suspending her as the Whistle Blower on 16 April 2009 and Hoffman's spouse, Celest Hoffman (Strategic Planning and Marketing Officer) on 24 April 2009 and Rian Lubbe (Chief Town Planner) on 3 March 2009. Individual staff members of the Municipality were likewise suspended and charged with disciplinary enquiries, all relating to complaints leveled at the services provided by Odendaal and Summerton.
18. De Klerk and Nast then appointed Connaughton, Miller and Smith, their own outsourced internal auditors, who found, not surprisingly, under their careful guidance, that Odendaal's dealings with donated land, did not amount to any "financial loss" to the Municipality. This investigation shall hereinafter be referred to as "the Midvaal auditor's investigation". (The Midvaal auditor's investigation reports are likewise in possession of the Municipal Manager as the custodian of documents. This report was likewise not made public and was not distributed to Pypers or Hoffman as one would have expected from law abiding officials).
19. After Hoffman submitted sworn affidavits to the DA Caucus, the Law Society and the Public Protector and Helen Zille in January 2009, the DA's political structures likewise launched an investigation, but not surprisingly, did not investigate, the actions and omissions of the foursome, Odendaal, Wenger, Nast and De Klerk and found, likewise as Nast, and yet again not surprisingly, "no evidence of wrongdoing". This investigation shall be hereinafter referred to as "the Moodey / Walters investigation". (The Moodey / Walters investigation reports are in possession of the DA Caucus and Provincial Executive, but may be subject to privilege and shall only be made available with consent of Odendaal as the Chairperson of the Region. It is recorded that the Disciplinary panel found that Nast, Moodey and Walters, gave "conflicting evidence" and because of this poor alleged Moodey / Walters investigation recommended formal investigations as submitted below. It was found that Nast lied as to the reason why Hoffman was suspended in the first place).
20. As from the minutes of the DA special Caucus meeting on 6 February 2009, when Hoffman's motion of no-confidence against the foursome of Wenger, Nast, De Klerk and Odendaal was tabled and unanimously dismissed, it is recorded: "d. The other matters are before the Public Protector and there is no proof of any wrongdoing." This was said and done whilst the Hoffman, Law Society and the Public Protector's investigations were still ongoing.
21. In the meantime in May 2009, Hoffman was subjected to disciplinary enquiry proceedings by the DA for his role in attending an interview with the Beeld newspaper, reporter Julian Rademeyer, which has led to a newspaper article, titled "Ons deure is oop as mense wil kyk", during April 2009 (See the contents of the Hoffman's investigation report).
22. After the National Elections and the publication of the newspaper articles in the Beeld and Sunday Times in early April 2009, the council took disciplinary measures against the Whistle blowers, Ralie Poggenpoel and Rian Lubbe.
23. Professor Hugo Pienaar was mandated to advise Nast and De Klerk on the thorny issues of the alleged corruptive role of the Council attorney, Mr. Odendaal, and the subject matters raised by Pypers and Hoffman at the National Public Protector. Pienaar's investigation shall be hereinafter referred to as "the Prof. Pienaar investigation". (The Pienaar investigation reports are in possession of the Municipal Manager, who is the custodian of documents). The Pienaar investigation reports have not been made public.
24. As a result of the Pypers investigation from October 2005 followed later by the Hoffman investigation of January 2009, the Public Protector was requested in 2008 to investigate Odendaal and Wenger and the Municipality. Advocates Stoffel Fourie and later Neels van der Merwe, have been appointed by the Public Protector to investigate the complaints leveled at the Midvaal Municipality, Odendaal, Wenger, Nast and De Klerk on a number of issues, listed as:
1. Odendaal and Summerton's appointment for legal services to the Council for 30 years in contravention of the MFMA, MSA etc.
2. Odendaal's role as sole auctioneer, in contravention of the MFMA, MSA, etc.
3. Irregular tender processes.
4. Palm trees (Wenger).
5. Debt collecting practices (Odendaal & Summerton and Meyerton Opspoorders cc).
6. Failure to collect debt (Hananda kafee) (de Klerk and Odendaal).
7. Performance bonuses and wasteful expenditure by paying out millions to ex-employees, with gag orders.
8. The Kitching investigation and report not made public.
9. The Speaker (Nast) investigation.
10. Odendaal benefiting from sale of properties donated to Council.
25. The Public Protector's investigation is currently still in process and it has been confirmed in the first week of September 2009 that the investigation is in full swing and that the statements by Odendaal, Nast and De Klerk that "no findings of wrong doing has been made" are untruthful as they have yet and have not finished their investigation of the original complaints by Hoffman and Pypers and have also discovered additional malpractices within the Municipality. (Correspondence and provisional statements to and from the National Public Protector are reflected as part of the Pypers investigation reports and the Hoffman investigation reports)
26. As a result of the Hoffman investigation, the Law Society of the Northern Provinces, commenced with their investigation against attorney Andre Odendaal, and postponed the proceedings in August 2009 pending the outcome the criminal prosecution as it was felt that Odendaal could not be forced to give evidence under oath, which may incriminate him in any subsequent criminal proceedings. (Details of the Law Society correspondence is enclosed in the Hoffman investigation reports).
27. It has come to our clients attention in September 2009 that The Public Protector is also investigating Odendaal's failure to account for R6.8 Million of Trust money, not accounted to the Midvaal Municipality, which are the proceeds of deposits, interest and purchase prices of auctioned properties, sold on the Municipality's behalf by Odendaal to members of the public, since 2005 in accordance with Section 14 of the MFMA (See the contents of the Hoffman investigation reports) What is shocking is that Hoffman submitted an affidavit stating that part of the Protected Disclosure made to him, entailed the failure to account for the trust monies by Odendaal, but that De Klerk and Nast fails to demand from Odendaal such an account, but rather arranging his reappointment as the Council attorney in June 2009.
28.As stated, both Pypers and Hoffman filed criminal charges against the foursome Odendaal, Wenger, Nast and De Klerk and it is currently unknown when, if and how the criminal proceedings will be proceeded with by the Director of National Prosecutions. The foursome has in reaction also filed criminal charges against Hoffman and Pypers for Defamation, Extortion, Bribery and Perjury. (See contents of Hoffman investigation reports).
29. The De Deur Civic Association likewise filed complaints and disclosures to the Law Society against attorney Odendaal relating to collections and evictions by the Municipality. The African National Congress Midvaal Zone, Sedibeng region likewise expressed its shock in the administration and the fraternity with Odendaal and of the Midvaal Council in writing during August 2009.(Copies of a bundle of statements by the Civic Association to the Law Society shall be properly indexed and paginated and delivered at your offices on your request).
30. Despite all of the abovenamed investigations, since October 2005 and despite the fact that attorney Odendaal is the key role-player in all of the alleged irregularities, Nast and De Klerk and Hartman, yet again manipulated and contravened the tender process to ensure that Odendaal's firm, Odendaal and Summerton inc, be re-appointed as one of four firms to do legal services for the Municipality (retained 85% of the legal services) for Debt Collection, Litigation and Auctioneering services in June 2009.
31. Section 83 of the Municipal Systems Act was intentionally breached by Nast and De Klerk when they failed to allow all prospective service providers that have tendered to be appointed Council attorneys, access to the information that Odendaal's firm has already been linked up via LAN network from the Municipality's computers to give them (Odendaal) direct access to data on all ratepayer's accounts for legal collection purposes. This expenditure in excess of R100 000.00, in January 2009, was done less than six months prior to the submission of tenders to prospective bidders for legal services and with the full knowledge that Odendaal will be reappointed to do the collections irrespective of the tender process advertised for April and May 2009. (A copy of a letter from a member of the community, addressed to the MMC: Support Services, Pat Hutcheson, will be forwarded on your request).
32. The Kitching / Poggenpoel investigation, the Speaker's (Nast) investigation, the Connaughton, Miller, Smith's investigation, the DA's investigation and the Prof. Pienaar's investigation all happens to have one astonishing common denominator, namely that not one of the complainants Pypers, Hoffman, Ralie Poggenpoel and Rian Lubbe has been approached, counseled, questioned, telephoned, copied or invited to make statements or to give evidence (orally or in writing) of any kind.
33. The Midvaal Council approved the "Fraud awareness and prevention policy" on or about November 2006. Hoffman and the Head of Corporate Services, including Legal Services, Mr. Thom Peeters, were instrumental in the implementation and distribution of this policy, which effectively incorporated the Protected Disclosures Act. Nast and De Klerk, from the outset, however intentionally contravened this Act by not affording any protection from occupational detriment to Whistle blowers.
34. Since the inception of the first investigation by Pypers, no less than nine "investigations" followed. In all of the investigations Wenger, Nast and De Klerk reacted by:
a. Defending and protecting Odendaal shamelessly;
b. By subjecting staff members of the Municipality to Occupational Detriments;
c. Made scandalous and defamatory statements, concerning the person and character of Pypers and Hoffman;
d. Intimidation of staff members by threatening them with dismissal if they should dare testify or make any negative statements about them;
e. Incurred wasteful expenditure by distributing pamphlets to residents and staff members defending their actions on the ratepayers' costs.
35. Since the first investigation in October 2005 up to date being exactly four years, there are Councillors that have not been informed as to the contents of the application and judgment in the matter between Odendaal and Pypers and / or the investigation by the Law Society or the Public Protector.
36. From both the Pypers investigation and the Hoffman investigation, sworn affidavits has been submitted that undoubtedly proves that Wenger contravened Section 12 of Schedule 1: Code of Conduct for Councillors, which is quoted for convenience sake: "12. Council Property - a Councillor may not use, take, acquire or benefit from any property or asset owned, controlled or managed by the Municipality, to which that Councilor has no right."
37. In addition, Wenger, contravened Section 5 of the Code of Conduct for Councilors in that she did not disclose to the Municipal Council that her husband was "donated" palm trees and that she directly benefited from making use of Council property, machines and employed staff to plant the palm trees, whilst a number of staff members have been summarily dismissed for less serious contraventions.
38. It was in fact Wenger that forced the former Municipal Manager, Barry Poggenpoel to resign and to be paid more than a Million rand and to sign a "gag order." (The termination documentation, the settlement package and Poggenpoel's "gag letter" in return, where he undertakes not to disclose any negative information about Wenger, is in possession of the Municipal Manager, who is the custodian of all documents).
39. The affidavits by Barry Poggenpoel and the whistle blower, Ralie Poggenpoel shall be made available on request.
The proposed forensic audit and investigation
40. Our clients strongly believe that the extent and nature of clients' concerns relating to the maladministration, fraud, corruption and other serious malpractices, shall cause you to consider it not only necessary, but also imperative to designate persons to investigate the serious matters, herewith raised by means of a comprehensive forencic audit.
41. Our clients request you to exercise your discretion in terms of the provisions of Section 106 of the Municipal Systems Act by serving, by written notice, to the Council of the Midvaal Local Municipality with a request to provide you with the information and to initiate an investigation the matters raised in this letter.
Kindly acknowledge receipt.
Yours faithfully,
HURTER SPIES INC
Statement issued by Jaco Mulder, MPL, Freedom Front Plus leader, Gauteng, November 13 2009
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