Mkhwebane nails Ramaphosa’s ally, Oscar Mabuyane

By: Sello Theletsane

Public Protector Busisiwe Mkhwebane has made adverse findings against President Cyril Ramaphosa’s ally, Eastern Cape Premier Oscar Mabuyane who she found had financially benefited improperly from the memorial service of struggle icon Winnie Madikiza-Mandela in 2018.

It is not the first time that Mabuyane faces serious allegations of corruption and improper conduct. Earlier this year, the University of Fort Hare (UFH) laid criminal charges against Nigerian fugitive professor for the allegedly irregular admission and registration of two students, including Mabuyane.

The controversial Premier was excluded from UFH’s master’s programme and deregistered as a student for not meeting the basic requirements.

Now with Mkhwebane having added to Mabuyane’s troubles, many are asking whether his close proximity to Ramaphosa will shield him from the ANC’s 54th national conference step aside resolution that saw ANC Secretary General Ace Magashule being suspended after being implicated in the Free State asbestos multi-million rand scandal.

Many will also demand that in the light of Mkhwebane’s damaging findings, Mabuyane should also be subjected to the same fate as former health Minister Zweli Mkhize who was forced to quit his position after being implicated in a procurement scandal involving the national health department.

In her report released today, Mkhwebane said her office had investigated allegations of corruption, maladministration or misuse of public funds by senior and executive government officials in the Eastern Cape Provincial Government departments (ECPG) and the Mbizana Local Municipality.

“This was in connection with the memorial service of late anti-apartheid struggle icon, Winnie Madikizela-Mandela, who passed away on 02 April 2018.”

Mkhwebane said the provincial government authorised a provincial memorial service in her honour. The service was held in her hometown of Mbizana on 10 April 2018.

Mkhwebane said the investigation followed a complaint lodged on 01 July 2019 by Mr. Xolile Mashukuca, a resident of the Buffalo City Metropolitan Municipality.

“The complaint was based on a newspaper report published in The Herald newspaper on 20 May 2019 under the headline: “Bhisho bosses R2million piggy bank”.

The article alleged that amounts of R2-m and R1-m were misappropriated by the departments and the municipality, respectively, with the assistance of a certain Mr. Lonwabo Bam, a local businessman.

In the main, it was alleged that the Premier of the Eastern Cape, Mr. Oscar Mabuyane, who was, at the time, MEC for Economic Development, Environmental Affairs and Tourism; the MEC for Transport, Safety and Liaison, Ms. W Tikana Gxotiwe; and the former MEC for Human Settlements, Mr. B. Madikizela (now the MEC for Public Works), improperly benefitted from the alleged misuse of public funds.

“The said newspaper article further alleged that a Mthatha businessman, Mr. Bam, deposed to an affidavit at the Butterworth Police Station on 27 April 2019, stating that Mr. Mabuyane and the MECs referred to above received hundreds of thousands of Rands from a deal that was made with the departments, the municipality and various other service providers or private companies and individuals.

The article was further corroborated by Mr. Bam’s two affidavits, in which he deposed under oath, amongst other things, that he received an instruction by way of a telephone call from Mr. Madikizela, a high ranking executive official in the employ of the provincial government to submit a fraudulent invoice to the Municipal Manager, Mr. Luvuyo Mahlaka in the amount of R 1.1million.”

“According to Mr. Bam’s first affidavit, an amount of R 1.1-m was deposited into his First National Bank (FNB) account – a business account for his company called Mthombeni Project (Pty) Ltd, on the 1st August 2018 from the municipality’s FNB account.”

“He further alleged that the money was paid after hours into his account by Mr Mahlaka for nothing (gratuitously so) as Mr. Bam had not done anything or rendered any service to the municipality to warrant this payment.

In his second affidavit on 11 August 2018, Mr. Bam alleged that another payment of R 2.2-m was paid into his business account by Mr. Masilo Phala, a Director of Key Spirit Trading 218 (Mr. Phala) for nothing (gratuitously so), except only to redistribute the money to provincial government officials.

After the payment of the deposits referred to above into Mr. Bam’s account, he was then instructed by an executive official currently in the employ of ECPG namely, MEC Madikizela, to transfer the same money to various proxy bank accounts in order to benefit certain government officials.”

Mkhwebane said a number of deposits and transactions or disbursements were subsequently made by Bam towards various proxy bank accounts linked to senior and executive government officials, as instructed by Madikizela.

Mkhwebane said after a thorough analysis of the allegations, the investigation revealed that, “indeed, an amount of R1.1million, in respect of the memorial service of Madikizela-Mandela was irregularly deposited into the account of Mthombeni Project (Pty) Ltd by the MLM and subsequently misappropriated to improperly benefit certain government officials and/or private persons”.

“Evidence placed before us revealed that the municipality allowed a government or state funded event, the Memorial Service of Madikizela-Mandela, to be taken over by private persons and politicians, who were not in the employ of government.”

“The event was subsequently carried out improperly and outside any identifiable Supply Chain Management processes.

“The R 1.1m was thereafter irregularly and improperly deposited into the bank account of Mthombeni Project (Pty) Ltd by Mr. Mahlaka, without procurement process or contractual basis and same was subsequently misappropriated to benefit Mr. Mabuyane, Mr. Madikizela and the ANC’” Mkhwebane said.

She added that Mabuyane personally benefitted to the tune of R450 000 from the R1,1m “which were certainly public funds that went into the Nedbank account of Allan Morran Design Architectural Services – a private company that carried out renovations at his private house.”

“On receipt of the R450 000, 00, Mr. Morran queried the payment. At that point, Mr. Mabuyane’s wife, Ms. Siyasanga Mabuyane, advised Mr. Morran, through an email that the deposit of R450 000 was to be used for renovations of the Mabuyanes’ private house.”

Mkhwebane instructed the Speaker of the Eastern Cape Provincial Legislature to “within 60 days, from the date of issuing of this report, table it in the legislature”.