KNYSNA NEWS - An explosive report on Knysna’s former municipal manager Kam Chetty, presented to council last week and leaked to Knysna-Plett Herald (KPH), contains damaging allegations against Chetty, and recommends that former mayor Eleanor Bouw-Spies be criminally charged and disciplinary action taken against Legal Services director Melony Paulsen.

The 17-page report was compiled by De Swardt Vogel Myambo Attorneys on instruction from councillor Ricky van Aswegen in June 2018. It addresses 15 allegations against Chetty, including misconduct and fraud.

Knysna-Plett Herald also confirmed that Chetty has instituted a R5-million dispute with the SA Local Government Bargaining Council against the municipality after alleging that his constructive dismissal was unfair. In reaction hereto, the report advised that the municipality should vigorously defend the claim, and institute criminal proceedings for fraud against Chetty and Bouw-Spies.

Asked for comment on the damning allegations, Bouw-Spies, through her lawyer Colleen Nel, pointed out that council has not adopted the recommendations but previously confirmed that the report was referred to the Municipal Public Accounts Committee. No criminal charges have been laid against any of those incriminated, Nel said, nor have the police identified them as suspects in any criminal investigations.

Some of the allegations contained in the report are listed below:

‘Backdating employment contract’
The first complaint relates to the alleged backdating of Chetty’s employment contract, which was reportedly signed on 24 August 2017 but allegedly backdated intentionally to 10 July 2017.

“The investigation has revealed evidence that this allegation is true and founded in fact,” states the report, which then goes on to explain in detail how this was achieved and for what reasons.

“This outstanding issue was most probably that the municipal manager intentionally delayed the signing of the employment contract as he was waiting for the new upper limits of total remuneration packages payable to municipal managers… ” the report states. “In this regard, the municipal manager seems to have put his own interests above his fiduciary duty to the municipality to act in its best interests and not expose it to unnecessary legal liability or potentially costly proceedings.”

‘Unlawful tourism contract’
Another complaint refers to the Knysna & Partners tourism contract of R4-million that was seemingly signed by Chetty on 11 July 2017, allegedly in spite of the knowledge that he did not have authority to do so as his own employment contract had apparently not yet been signed.

The report states that the potential for successful reviews of any actions the municipal manager took while not duly authorised to do so is vast, and that those who assisted him in betraying fiduciary duties have in turn betrayed the municipality too.

In this respect, the report recommends that disciplinary proceedings be instituted against Bouw-Spies and Paulsen, due to the serious misconduct of allegedly allowing the signing of the contract while knowing that Chetty had no authority to act.

‘Undue influence of Paulsen’
Another complaint against Chetty refers to him allegedly influencing Paulsen in an undue manner by threatening disciplinary action to discourage her from reporting misconduct. In the report it is stated that Paulsen confirmed this, although it never culminated in formal proceedings being instituted.

The municipality was also advised regarding the funding of private legal costs of the mayor and Speaker when they sought interdictory relief against blogger Mike Hampton, who allegedly made false and defamatory statements against them in July last year. The total cost of this was revealed to be R85 595.29.

The report states that “there can be no doubt that interdictory relief related to the persona of a councillor is of a personal nature and it is our conclusion that these expenses so incurred constitutes irregular expenditure and/or unauthorised expenditure”, and recommends appropriate action against Bouw-Spies, Chetty and Paulsen to recover the costs.

‘Unnecessary spending’
Chetty is also accused of spending R90 667.20 of municipal funds on unnecessary advice regarding the alleged tampering of draft minutes by councillor Peter Myers earlier this year.

The report states that until draft minutes are approved by the majority who attended the meeting after consideration of the accuracy thereof, it simply remains draft minutes, capable of being changed at any time. “Had the municipal manager exercised reasonable care … he would have foreseen that draft minutes could not be tampered with.”

In conclusion, among the recommendations were that council determines that the misconduct allegations against Chetty are of a serious nature; that council resolves to oppose the unfair dismissal dispute; and that the acting municipal manager be instructed to take steps to institute criminal and disciplinary proceedings against such persons as may be appropriate stemming from the content of the investigation. It was also recommended that council consider instituting disciplinary proceedings against Bouw-Spies in terms of the Code of Conduct for Councillors.

Several attempts to obtain comment from Chetty proved unsuccessful. He did not take calls from Knysna-Plett Herald nor did he respond to text messages.

Paulsen was also contacted for comment, but did not respond at the time of going to press.