Publication: Business Day Date: 2005-06-23 Reporter: Vukani Mde

Scandal in Air as New Deputy Steps Up

 

Publication 

Business Day

Date

2005-06-23

Reporter

Vukani Mde

Web Link

www.bday.co.za

 

Phumzile Mlambo-Ngcuka’s appointment comes on the back of one of the most damaging corruption scandals since 1994.

It is a scandal that eventually opened up a vacancy in the presidency last Tuesday.

When announcing the sacking of Jacob Zuma, President Thabo Mbeki emphasised the need to respect the institutions of government, particularly the judiciary.

“This includes, among other things, the need to respect the constitutional status, institutions, powers and functions of government in other spheres,” Mbeki said, quoting the constitution.

But Mlambo-Ngcuka comes into office with the unresolved baggage of a potentially wide-ranging corruption scandal involving political party funding and influence-peddling.

Allegations have been made in Parliament that her brother, Bonga Mlambo, was the recipient of a payment of R50000 made by a controversial businessman and generous funder of the African National Congress (ANC).

The businessman concerned, Sandi Majali, makes his money from large government tenders in the energy sector, the sector over which she presided.

Mlambo-Ngcuka’s department issued a statement which implausibly tried to explain away the payment. The statement said: “Bonga Mlambo and Sandi Majali were both involved in a tourism-related business which tried to bid for a hotel at St Lucia, Kwa-Zulu-Natal. The two parties are business (partners).”

But Majali has no recognised tourism business interests, and neither “business partner” has been able to produce proof of their business joint venture.

Mlambo-Ngcuka also had a responsibility to take action against the management of state oil company PetroSA, which twice paid R15m for the same shipment of oil condensate from Majali’s company.

The bulk of the money was given to the ANC by Majali for electioneering purposes.

There is prima facie a case of reckless financial management and wasteful expenditure against PetroSA, if the Public Finance Management Act is any guide. Both issues have now been brought to the attention of the office of the public protector.

Sources said the office of the public protector was under pressure to finish the probe and “clear” Mlambo-Ngcuka. But this week the office was still waiting for documentation from PetroSA so it could launch an inquiry.

Despite the pending probe, Mlambo-Ngcuka’s appointment to the post of deputy president was greeted with praise yesterday.

The ANC, its alliance partners, and political opposition parties agreed she could be called upon to do a job. Most other commentators agreed she was efficient, approachable and astute.

But the Oilgate saga, and the role of deputy president, may yet raise “questions of conduct that would be inconsistent with expectations that attend those who hold public office”.

Those words were used only last Tuesday, with reference to our previous deputy president.

With acknowledgements to Vukani Mde and the Business Day.