PLETTENBERG BAY NEWS - Bitou Municipality could be placed under administration in the near future should a forensic investigation – which the municipality attempted to stop through a high court application, but recently lost – find grounds for such a move.

Council attempted to prevent a Section 106 intervention by local government MEC Anton Bredell into dealings of the municipality following 11 different allegations of misconduct. These include an allegation of the establishment of "ghost companies" clandestinely run by municipal officials, which performed nonexistent contracts for the municipality.

On Friday 16 November the Western Cape High Court found in favour of the department, denying the municipality's attempt to stop the investigation.

"The judge found that there are a number of serious complaints levelled against the municipality and its staff, particularly involving employees within the mayor's office.

'Lack of cooperation'

The judge stated that each complaint was sufficiently serious to warrant forensic investigation," Bredell said.

He added that an internal report into these allegations by council was seen as "superficial and worthless".

"The judge added that the municipality's lack of cooperation with the province was unlawful and smacked of an attempt to cover up its malfeasance."

The judgment ordered council to comply with the Section 106 investigation initiated by Bredell and further demanded that the council desist from impeding and or undermining the investigation.

While Bredell confirmed that a forensic team had been sent to Bitou to conduct the investigation, he said it did not mean that the municipality would necessarily be placed under administration, although intervention could eventually lead down that route.

DA caucus leader in Bitou, Bill Nel shed some light on the allegations leading to the judgment.

He said a senior official, Vuyokazi Mbelani, had been charged with 14 counts of misconduct in 2014 at the Ngqushwe Municipality in the Eastern Cape. These ranged from gross dishonesty, financial misconduct and tax avoidance. "If these allegations are proven true it renders him unfit for appointment at Bitou Municipality," Nel said.

Mayor's office implicated

He added that there were also allegations of the mayor's office being involved in discretionary grant-in-aid funds to assist needy beneficiaries and organisations involved in welfare, and said an interim forensic report indicated that this amounted to a money-laundering scheme.

Nel said large amounts of money and or materials were allegedly solicited by the mayor's office from wealthy private individuals and companies under false pretences, and had been used to pay for liquor bills and to build structures at private homes.

He further said there were also allegations that large liquor bills from a number of local restaurants had fraudulently been manipulated so that the till slips reflect food rather than liquor.

Another allegation includes that of bribery of up to R50 000 to obtain contracts with the municipality.

Nel said the report also alleged that mayor Peter Lobese, while employed at Bitou Municipality, received a further salary from Makana Municipality in the Eastern Cape.

Bredell's move 'a publicity stunt'

Commenting on these developments, Bitou municipal spokesman James Sijama said Bredell's move was nothing more than a publicity stunt and abuse of authority for political gain.

He said Bredell's allegation that the municipality wanted to prevent the department's intervention was not true.

"It is correct that Bitou Municipality launched an application … for the review and setting aside of the decision by Bredell. Part A of this application sought an urgent order that the investigation launched be stayed pending the review. The action is a legally permissible process and not a waste of the ratepayers' money," Sijama said.

The second part of the application, he said, sought to review Bredell's decision and to produce the relevant record of the decision.

"The orders were sought as a result of the approach adopted by Bredell, as the council believed his conduct fell foul of the constitutional principles of legality and principles enshrined in the provisions of the Intergovernmental Relations Framework Act."

'Impossible deadlines for responses'

Sijama said some of these issues included "wrongfully" addressing his communications to former speaker Annelise Olivier instead of the mayor or municipal manager, and Bredell failed on several occasions to provide council with "adequate information to enable it to properly respond to the queries raised by him". "Further to that he has imposed impossible deadlines for responses to his queries," he said.

"The council, because of the abovementioned facts, concluded that Bredell was likely to consistently act in a manner designed to enable him to exercise control over municipalities or to ensure that they bend to his will. There is evidence to suggest that this is particularly the case where a party other than that (sic) he represents holds power in that municipality," Sijama said.

He added that it was also for this reason that the application was made.

However, Sijama said the municipality welcomes the court's decision and would not question it.

"We have meticulously engaged on the merits and have nothing to fear – hence our stance of welcoming the investi-gation to commence."

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