1. REPORT TO THE JOINT
COMMITTEE ON ETHICS AND MEMBERS’ INTERESTS ON THE FINDINGS OF THE AUDITOR
GENERAL WITH RESPECT TO THE AUDIT OF THE DISCLOSURE OF INTERESTS BY MEMBERS
On 13 November 2008 the Joint Committee on Ethics and
Members’ Interests met at Room V227 Old Assembly Building to consider the
report of the Auditor General on the alleged non-disclosure by Members of
Parliament.
Present
Chairperson:
Landers, LT (ANC)
National
Assembly
De Lille, P
(ID)
Delport, JT
(DA)
Dudley, C
(ACDP)
Gumede, DM (ANC)
Njobe, MAA
(ANC)
Rajbally, S
(MF)
Seaton, SA
(IFP)
National
Council of Provinces
Dlulane, BN (ANC)
Matlanyane, H (ANC)
Oliphant, M (ANC)
Ralane, TS (ANC)
Apologies
National
Assembly
Baloyi MR
(ANC)
Nwamita
Shilubana TLP (ANC)
Radebe BA
(ANC)
Ditshetelo,
PHK (UCDP)
National
Council of Provinces
Tolo BJ
(ANC)
Staff
Adhikarie
Z, Mahomed F, Isaacs F
The Auditor
General conducted an investigation on the completeness of the Register of
Members’ Interests as part of the 2007 financial audit of Parliament. As a result they submitted details of
fourteen Members who had allegedly not disclosed.
In terms of
the procedure, correspondence was sent to the Members on the 30 July 2008 to
seek their responses to the allegations.
The report
details the companies that the Members have allegedly not disclosed; it
outlines the Members responses, as well as the findings with recommendations as
to sanctions where appropriate.
In findings
related to resignations from companies and close corporations, it was noted
that the process to effect resignations are not solely in the control of the
person concerned. The procedures at Company
and Intellectual Property Rights Organisation (CIPRO) require that signatures
of other partners/membership/directors are required to finalise
resignations. The consequence of this is
that after an individual has resigned from a company or a close corporation
they are dependent on other parties to effect the change. It is for this reason that Members have been
given the benefit of the doubt, where they indicated that they have resigned.
In
considering penalty, in respect of dormant companies it is noted that the
Committee made numerous efforts to assist Members to fully comply with the
disclosure requirements of the Code.
Arrangements were made with CIPRO to avail their services which allowed
an individual Member to check his/her disclosure details. About 300 Members participated in this
process of checking.
Note 3 on
the disclosure of interests form specifies that dormant companies must be
disclosed. It is further noted that the
Joint Committee on Ethics and Members’ Interests have in numerous reports
adopted by the National Assembly and the National Council of Provinces,
resolved that Members must disclose dormant companies.
Abram, S Mr
It is
alleged that the Member did not disclose the following:
Company Information
Closeprops
169 Registration number 2005/088057/23
Closeprops
170 Registration number 2005/088053/23
Ithute
Tswelopele Solution Registration number 2000/0209072/07
Members’
response
Mr Abram
responded that Closeprops 169 and 170 are property holding Close Corporations in
which he has 50% interests, these properties were disclosed.
Mr Abram
indicates that he had resigned from Ithute Tswelopele Solution and is trying to
establish why the resignation was not affected.
Findings
There is no
breach of the Code with respect to Closeprops 169 and Closeprops 170 as these
companies were disclosed in the land and property section of the Register of
Members Interests. The Member is advised
that the full name of the Close Corporation must be included in the Register.
With regard
to Ithute Tswelopele that as he had resigned there is no breach of the Code of
Conduct. The Committee agreed that Mr
Abram must ensure that the resignation is rectified with CIPRO.
Bonhomme, TJ Mr
It is
alleged that the Member did not disclose the following:
Company
Information
Newlands
Mashu Community Development Centre Registration number 1995/003138/08
Member’s
response
In his response
Mr Bonhomme indicated the Newlands Mashu Community Development Centre is also
known as the Kwa Mashu Newlands Permaculture Centre which was disclosed.
Finding
There is no
breach of the Code of Conduct for Members of Parliament as the interest was disclosed.
Holomisa, GBH Mr
It is
alleged that the Member did not disclose the following:
Company
Information
Amalgum
Investments Twenty Registration
number 2003/015387/07
Beat the
Clock Investment Registration
number 2006/034220/07
Ebaleni
Property Holdings Registration
number 2006/031986/07
Holomisa
Investments Registration
number 2000/006258/23
Members’
response
In his
response Mr Holomisa indicated that he had disclosed Amalgam Investments and
Holomisa Holdings in the category shares and financial interests. Ebaleni Property Holdings and Beat the Clock
Investments are new interests and had been disclosed in his 2008 declaration.
Finding
There is no
breach of the Code.
Maluleka, HP Mr
It is
alleged that the Member did not disclose the following:
Company
Information
Bay View
Trading 20 Registration number
2006/177896/23
Members’
response
In his
response Mr Maluleka indicated that the company is dormant and apologized for
the omission.
Finding
Mr Maluleka
has not fully disclosed, as required and is in breach of the Code.
Sanction
It is noted
that the company is dormant. In similar
cases the Joint Committee recommended that Members be issued with a fine.
The Committee
therefore recommends that the penalty is a fine of R500 for the non-disclosure
of directorship in a company.
Mashiane, ML Ms
It is
alleged that the Member did not disclose the following:
Company
Information
Mabopane
Community Services Organisation Registration number 1997/003926
Members’
response
Ms Mashiane
in her response said that the Mabopane Community Service Organisation is a not
for profit organisation which need not be disclosed. Accordingly there is no
breach of the Code of Conduct for Members of Parliament.
Matsomela, MJ Ms
It is
alleged that the Member did not disclose the following:
Company
Information
Jeids Five
Marketing Registration number 1997/046999/23
Members’
response
In her
response Ms Matsomela indicated that the company has been dormant since
inception and that she will follow up and would advise the Committee
accordingly.
Finding
Ms
Matsomela has not fully disclosed, and is in breach of the Code of Conduct for
Members of Parliament.
Sanction
It is noted
that the company is dormant. In similar
cases the Joint Committee recommended that Members be issued with a fine.
The Committee
therefore recommends that the penalty is a fine of R500 for the non-disclosure
of directorship in a company.
It is
alleged that the Member did not disclose the following:
Company
Information
Vakazi
Holdings Registration number 2003/004864/06
Member’s
response
Ms Mentor
has indicated that she had resigned from the company six months after she was
appointed as director. She had formally
resigned and asked the company to remove her as director.
Finding
There is no
breach as Ms Mentor had resigned, She must ensure that her resignation is
finalized at CIPRO.
Mlangeni, A Mr
It is
alleged that the Member did not disclose the following:
Company
Information
Centers’
for Community Development Registration
number 1993/000070/08
Havtoohav
Investments Registration
number 2004/029269/07
Ndiza
Empowerment Technology Registration
number 2000/017077/07
Orlyfunt
Holdings Registration
number 2003/014960/07
Orlyfunt
Strategic Investments Registration
number 2004/030159/07
Pacific Height
Investments Registration
number 2006/039622/07
Inkwenkwezi
Gold Registration
number 2004/002172/07
Comorant
Investments 22 Registration
number 2004/002172/07
Member’s
response
In his
response Mr Mlangeni indicated that the Centers’ for Community Development was
placed under provisional liquidation, the company was formed to assist veterans
of the struggle and is an article 21 company.
He had derived no benefit from it.
Mr Mlangeni
resigned from Ndiza and Crowned Comorant.
In a
further response Mr Mlangeni apologised for his non-disclosure. He said that
Orlyfunt Strategic Investments and Orlyfunt Holdings are subsidiaries of
Matodzi which he had disclosed. He concedes that he should have disclosed the
entities.
He said
that he had agreed to the directorships in Havtohave Investments and
Inkwenkwezi Gold but these entities never “took off”.
Mr Mlangeni
also submitted an affidavit from Mr TR Jones of
Findings
There is no
breach in respect of the Centers’’ for Community Development, as this is a not
for profit organisation and it need not be disclosed in terms of the Code of Conduct..
In respect
of Pacific Heights, the company was established in 2007, the period of the
audit was for the 2007 year, this together with the affidavit from Mr
Jones shows that this may have been an
omission, Mr Mlangeni should be given the benefit in this regard.
Mr Mlangeni is in breach for the
non-disclosure of Orlyfunt Strategic Investments and Orlyfunt Holdings,
Havtohave Investments and Inkwenkwezi Gold
Penalty
It is
recommended that Mr Mlangeni be fined R500 per entity for the non-disclosure of
directorships in Orlyfunt Strategic Investments and Orlyfunt Holdings,
Havtohave Investments and Inkwenkwezi Gold, a total fine of R2000 is recommended.
It is
alleged that the Member did not disclose the following:
Company
Information
Mfingwana
Projects Enterprises Registration
number 2002/053090/23
African
Pearl Trading 17 Registration
number 2005/060146/23
MMDZ
Trading Enterprises Registration number 2006/208148/23
Pathway to
Educational Achievement Registration
number 1998/013884/08
Vathisa
Vuthela Technologies Registration
number 2005/060933/23
Just us
Women Business Enterprise Registration
number 2003/067822/23
Mahlanga
Business Enterprises Registration
number 2004/063705/23
Mountain
Hill Property Registration
number 2002/097108/23
Member’s
response
In her
response Ms Ngcengwane indicated that:
Mfingwana
is active but currently dormant.
She has no
recall of African Pearl Trading and intends resigning.
MMDZ is an
active enterprise.
She has
resigned from Pathway for Educational Achievement
Vathisa
Vuthela Technologies has not taken off and she has no contact with her business
partner.
Just us
Women Business Enterprises – she has resigned from the company.
Mahlanga
Business Enterprises, she has no recall of this company and would like to
resign from this company.
Mountain
Hill Property, she intends resigning from this company.
Findings
The
Committee gives Ms Ngcengwane the benefit of the doubt regarding her
resignation for Pathway for Education Achievement and Just Us Women Business
Enterprise and therefore finds that there is no breach in this regard. She must ensure that the resignations are
finalized at CIPRO.
In respect
of non-disclosure of the following companies, Mfingwana Projects Enterprises,
Vathisa Vuthela Technologies, Mountain Hill Property and MMDZ Trading
Enterprises, the Committee finds that Ms Ngcengwane is in breach of the Code of
Conduct for the non disclosure of directorships.
With
respect to African Pearl Trading 17 and Mahlanga Business Enterprises, the
Registrar obtained the copies of the Close Corporations founding documents
which Ms Ngcengwane had signed.
Penalty
With
respect of Mfingwana Projects Enterprises, Vathisa Vuthela Technologies,
Mahlanga Business Enterprises, Mountain Hill Property, African Pearl Trading,
the Committee notes that these companies are dormant and subsequently finds
that the Members must be fined R500 for each non disclosure, R2500 in for the
dormant companies.
With
respect to MMDZ Trading Enterprises which is currently trading. It is noted
that the company was established in 2006 and that Ms Ngcengwane had disclosed
in 2008. The Committee recommends that Ms Ngcengwane be fined R1 000 for the
non disclosure of this company.
The total recommended
penalty is R3500.
Ntuli, SB Mr
It is
alleged that the Member did not disclose the following:
Company
Information
Bensat
Construction Registration
number 1998/023522/23
Modern Era
Construction and Projects Registration
number 2006/001900/23
Member’s
response
In his
response Mr Ntuli has indicated that his business partner in Bensat
Construction passed away a few years ago.
The Company has been dormant since.
He indicated that he has no knowledge of Modern Era Construction Projects.
Mr Ntuli said that he resigned from
Finding
The
Registrar obtained copies of the founding statement for Modern Era
Construction. Mr Ntuli was asked to verify his signature on the documents of
Modern Era Construction; he indicated verbally that the signature is not his, but
has not submitted a written response despite numerous requests from the Office
of the Registrar.
Mr Ntuli
was afforded ample opportunity to respond, his failure to do so leaves the
Committee no choice as it must base its findings on the bases of the signatures
on the forms. The Committee finds that Mr Ntuli is in breach of the Code of
Conduct for the non-disclosure of directorships. in respect of Modern Era Constructio.
He conceded that he was aware of Bensat Construction and is therefore also in
breach in this regard.
Penalty
As both
these companies are dormant it is recommended that Mr Ntuli be fined R500 per
entity, a total fine of R1000.
Nzimade, LPM Mr
Company
Information
CBR
Education and training for Registration
number: 2001/006621/08
Empowerment
Eyathu
Sonke Drives Training Registration
number 2001/051404/23
Secretariat
of the African Decade Registration
number 2003/027026/08
of persons
with Disabilities
Member’s
response
That CBR
Education and Training for Empowerment are non-profit organizations.
Mr Nzimande
indicated that Eyathu Sonke is dormant.
Findings
Mr Nzimande
has breached the Code of Conduct for the
non-disclosure of his directorships in
Secretariat
of the African Decade of Persons with Disabilities and CBR Education and
Training for Empowerment are not for profit organizations, accordingly
Mr Nzimande
is not in breach of this respect.
Penalty
Eyathu
Sonke is dormant; the Committee recommended a fine of R500.
Ramotsomai, CMP Ms
Company
Information
Full Swing
Trading 530 Registration
number 2005/028722/23
Member’s
response
Ms
Ramotsomai has indicated that she was under the impression that she had
resigned from this company.
Finding
Ms
Ramotsomai should be given the benefit of the doubt with regard to her
resignation from the company. Ms
Ramotsomai must ensure that her resignation is finalized at CIPRO. Accordingly there is no breach of the Code of
Conduct.
Smith, VG, Mr
Company
Information
Nambiti
Nextwave Consulting Registration number
2003/012765/07
Euro Blitz
48 Registration
number 2002/012907/07
Hlanganani
Investment Registration
number 2001/001423/07
Leshema
Finance Management Registration
number 1994/041151/23
Services
Member’s
response
In his
response Mr Smith indicated that he had resigned from Nambiti Nextwave.
Euro Blitz
trades as Qulemar (Pty) Ltd and has been disclosed. The record shows that he has resigned from Hlanganani. Leshema Finance is a dormant company.
Findings
There is no
breach with regard to Nambiti Nextwave, Euro Blitz and Hlanganani Investment. In respect of Leshema Finance, Mr Smith is in
breach of the Code. Mr Smith must ensure
that his resignation from Nambiti Nextwave is finalized.
Penalty
It is noted
that Leshema Finance is dormant; it is recommended that he be fined R500.
Woods, GG Mr
Company
Information
Imbenge
Group Registration
number 1997/001649/07
Imbenge
Properties Registration
number 1997/001145/07
Member’s
response
Mr Woods
indicated that he was of the view that Berg Street Properties was deregistered.
He indicated that he has no recall of the Imbenge Group and Imbenge Properties.
The Registrar
obtained the founding documents for Imbenge Group and Imbenge Properties from
CIPRO these show that Mr Woods did not sign the founding documents.
The
Auditors listed on the founding documents indicated that they did not have any
documents for the companies.
Findings
It is
recommended that Mr Woods be given the benefit of the doubt with regard to Berg
Street Properties. As there is not evidence to indicate that Mr Woods consented
to being appointed as a director for Imbenge Group and Imbenge Properties.
Accordingly
there is no breach of the Code of Conduct. Mr Woods must ensure that he advises
CIPRO and removes himself from the companies concerned.
The
Committee adopted the report unanimously.
Report to
be considered.