CACHALIA NOT COOPERATING WITH POLICE ON MOTORSPORT CONTRACTS
Despite numerous attempts by the police and the National Prosecuting Authority, Gauteng Economic Affairs MEC Firoz Cachalia has still not given an affidavit in connection with the financial misconduct charge that I laid last year concerning the multi-million rand motorsport contracts that have now been cancelled (see here).
I laid the charge on 9 September last year against Mr Sibusiso Xaba, the former Department head who signed the contracts which contravened a number of provisions of the Public Finance Management Act.
The total amount saved from reviewing and cancelling these contracts is about R1 billion, yet Cachalia is not cooperating with the police in this matter.
As the accounting officer of the time Xaba faces a possible criminal sentence in terms of Section 86 of the PFMA if his non-compliance is found to be willful or grossly negligent. This offence can lead to a fine or imprisonment not exceeding five years.
Cachalia has refused to even countenance disciplinary steps against Xaba, who now holds a senior position with the Planning Commission in the Premier's office.
Where is the accountability in this matter? Cachalia contends that the contracts were entered into in good faith, but I strongly suspect that pay-offs were made.
The forensic investigation that Cachalia has instituted into these contracts must dig deep, but I doubt that this will happen. It will probably be a white-wash as too many senior ANC officials could be involved.
Xaba's former political boss Paul Mashatile also has to be accountable for this fiasco, yet he is still a strong contender to be re-elected as ANC chairperson in Gauteng.
I am pleased that the contracts have been cancelled, but the R117.5 million penalty is very high.
The people of this province have been ripped off, and somebody's head has to roll.
Statement issued by Jack Bloom, MPL, Democratic Alliance Gauteng corruption spokesman, March 9 2010
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