Why did Minister Godongwana not disclose his involvement in Canyon Springs?

It appears that Deputy Economic Development Minister, Enoch Godongwana, has breached the Executive Ethics Code by not disclosing his interests in the reportedly fraudulent company, Canyon Springs Investments. Sections 5 and 6 of the Executive Ethics Code prescribe that Cabinet members must declare their financial interests, which are defined to include "shares and other financial interests in companies and other corporate entities" to the Secretary of Cabinet within 60 days of either assuming office, or of becoming aware of such an interest.

Yesterday, I wrote to the chairperson of the Portfolio Committee on Economic Development to request that Deputy Minister Godongwana be called before the committee to explain his reported involvement in Canyon Springs.

I will today be writing to the Public Protector, Advocate Thuli Madonsela, who is mandated by the Executive Ethics Act to investigate breaches of the Ethics Code, to request that an investigation be conducted into the Minister's apparent non-disclosure of his Canyon Springs interests.

Deputy Minister Godongwana also failed to declare his financial interest in Canyon Springs in the financial disclosure he made to Parliament. In light of this, I will be writing to the co-chair of Parliament's Joint Committee on Ethics and Members' Interests, Ben Turok, to request an investigation.

This is a significant development in the ongoing investigation into Canyon Springs Investments' involvement in the "disappearance" of R100 million in textile workers' pensions. I will be informing the prosecution that Deputy Minister Godongwana appears to have concealed his interests in Canyon Springs from Parliament and the public.  

Currently, Canyon Springs Investments, a company partly owned by Deputy Minister Godongwana and his wife, is reportedly being investigating for defrauding the South African Clothing and Textiles Workers' Union (SACTWU) Provident Fund of R100 million. Recent reports have indicted that the SACTWU Provident Fund investments, which flowed through Canyon Springs Investments, were funneled towards businesses connected to various ANC politicians while Deputy Minister Godongwana and his wife sat on its board as directors. To date, these investments have not yet been recovered. 

Deputy Minister Godongwana's failure on two occasions to disclose his financial interest in Canyon Springs is concerning. It raises questions about whether the Deputy Minister sought to purposefully obscure his involvement in Canyon Springs in order to cover up his involvement in a reportedly fraudulent company. Such conduct would be entirely inconsistent with that expected of a Cabinet member. It is therefore essential that the Deputy Minister's involvement in Canyon Springs and his reported non-disclosure are thoroughly interrogated.

Statement issued by Kobus Marais MP, DA Shadow Minister of Economic Development, October 5 2011

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