Bitou mayor implicated in dodgy deals

PLETTENBERG BAY NEWS - Boozy rendezvous at the expense of ratepayers, using NGOs to "siphon" money out of municipal coffers, underqualified high-ranking officials and business interests being kept on the down-low, are just some of the allegations that were delved into in a forensic investigation into irregularities within Bitou Municipality.

While one might mistake this for a plot of a television political drama, the report – which was compiled under the auspices of the Western Cape government – outlining these allegations were made public last week.

Alleged money-laundering scheme
Bitou DA PR councillor Bill Nel said the report, which was served on the municipality early in December last year, revealed several alleged irregularities including details of an alleged money-laundering scheme conducted from mayor Peter Lobese's office "to siphon vast sums of money from the municipal coffers under the guise of grants-in-aid to non-government organisations involved in community work among the poor and needy".

Nel said another aspect that was uncovered included alleged "ghost companies" that performed "no actual services".

He added that the report further found there were instances of alleged extortion of money in the form of donations under false pretenses from business owners used to treat fellow mayoral and senior administrative staff members to regular free lunches "accompanied by copious amounts of liquor".

"Restaurant owners who rent municipal premises were intimidated to the point where bills exceeded R100 000 and were eventually settled by the municipality with ratepayers' money," Nel said the report revealed.

'Underqualified staff'
Another concern the report highlighted according to Nel, was that most members of the mayor's political office staff were allegedly underqualified for their positions.

"Some were even without secondary school education. Most of these appointees were selected without following the prescribed recruitment procedures," Nel said.

"Another startling fact uncovered by the forensic investigators is that many of the ANC and AUF politicians as well as senior staff members like the municipal manager and CFO did not declare their personal business interests as prescribed by law. In this regard the mayor himself did not declare his personal interest in a funeral business."

Nel concluded: "The DA hopes the report recommendations, including criminal charges and disciplinary action, will be followed through. The problem however, is that the speaker and municipal manager, who by law must spearhead these actions, are implicated in the report. We will continue to keep a close eye on this matter and will not allow the AUF and ANC to disregard these very serious allegations."

'Attempt to tarnish mayor's image'
Lobese has subsequently hit back saying Nel's statements are a desperate attempt to tarnish the image of the mayor and that of the Bitou council and administration, to sustain "the racist approach that when a black person enters office of power, reason escapes whatever action is taken can only be motivated by corruption," Lobese said in a statement in response.

He said the report has been properly processed in terms of the prescribed legislation and the council adopted a "rules-based process to implement its recommendations".

"The investigation covers the period of three years and was concluded in March 2019, but curiously brought to the attention of the municipality nine months later, and as a result thereof many of its recommendations have in fact become redundant."

He added the main allegations made against the director of corporate services had been dealt with and she had since been disciplined and dismissed.

"The allegations against the persons at the office of the mayor have been dealt with and anybody that has been suspected of unethical and illegal actions has been relieved of their responsibilities and is no longer in the employ of the municipality. The accounting officer, being the municipal manager implicated in the report, resigned voluntarily and is no longer in the employ of the municipality. The remaining allegations against the other persons and including the office of the mayor are being subjected to an independent scrutiny in the interest of accountability and transparency; this is done through the council."

ANC weighs in
The ANC also weighed in on the matter. Its chief whip in Bitou, Phakie Mbali, said the party believes all those implicated in the report should answer and that due process should be followed. "In the case of people found to be on the wrong side of the law, actions must be taken without fear or favour. We believe and subject ourselves to a fair and just process which must not be trampled on," Mbali said.

He however cautioned the DA not to "politically grandstand and act as holier than thou on this report" since the DA was part of government when some of these allegations took place.

Bitou DA PR councillor Bill Nel. Photos: Yolande Stander