REPORT OF THE JOINT COMMITTEE ON ETHICS AND MEMBERS’ INTERESTS ON THE COMPLAINT AGAINST MINISTER BMN BALFOUR.

On 13 November 2008 the Joint Committee on Ethics and Members’ Interests met at room V227 Old Assembly Building to consider the complaint against Minister BMN Balfour.

Present:

Mr L Landers Chairperson

National Assembly

De Lille, P

Delport, JT (DA)

Dudley, C (ACDP)

Gumede, DM (ANC)

Gxowa, NB (ANC)

Njobe, MAA (ANC)

Rajbally, S (MF)

Seaton, SA (IFP)

National Council of Provinces

Dlulane, BN

Matlanyane, H

Moseki, AL

Oliphant, M

Ralane, TS

Apologies

National Assembly

Baloyi MR (ANC)

Nwamita Shilubana TLP (ANC)

Radebe BA (ANC)

Ditshetelo, PHK (UCDP)

National Council of Provinces

Ntwanambi ND (ANC)

Tolo BJ (ANC)

Staff

Adhikarie Z, Mahomed F, Isaacs F

The Joint Committee on Ethics and Members’ Interests received a complaint which referred to a payment allegedly made by Kgwerano Financial Services for a Volkswagen Touareg.5.0 V10. It is alleged that the Minister had failed to declare payment by Kgwerano as required by the Code of Conduct for Members of Parliament

The Code of Conduct for Members of Parliament stipulate in terms of paragraph 8(f) and (g) which require that Members must disclose:

(f) Gifts and hospitality:

(i)A description and the value and source of a gift with a value in excess of R1500;

(ii) a description and the value of gifts from a single source which

cumulatively exceed the value of R1500 in any calendar year; and

(iii) hospitality intended as a gift in kind.

(g) Benefits:

(i) The nature and source of any other benefit of a material nature; and

(ii) the value of that benefit.

The Committee considered the information provided by:

• The complainant,
• The response by Minister Balfour which included documents such as the lease agreement for the vehicle, statements of the account, his personal bank statements, and a supporting letter from the bank,
• The Department of Transport on the Public Office Bearers Motor Scheme,
• a signed affidavit by a director of Kgwerano Financial Services,
• The Committee also received a signed affidavit from Mr Litton on behalf of Wesbank

In making its findings the Committee the Committee noted the signed affidavit from Mr Litton of Wesbank Head of Risk, in which he confirms the following under oath:

1. The Minister Balfour entered into a lease agreement with Kgwerano Asset Finance a division of First Rand Bank Limited on 21 February 2006 for the lease of a new Volkswagen Touareg 5.0 V10 TDI TIP.
2. The vehicle matched the details contained in the invoice from Northcliff Volkswagen.
3. The original contract term of the vehicle was extended, and in terms of bank procedures a new contract number was allocated.
4. He confirms that they did not finance two vehicles and the contracts relate to the Volkswagen Touareg 5.0 V10.
5. Wesbank draws regular monthly instalments from Minister Balfour from his personal bank account for payment of the motor vehicle.
6. In supplementary affidavit Mr Litton responds to the allegation of a settlement letter, he explains that a settlement letter is sent out when one account is closed. In this instance the first account was closed to reschedule the payments, he confirms that there was no lump sum payment.

Findings

In light of the above the Committee found unanimously that the allegation that the Minister received a gift in the form of a payment for his motor vehicle was not substantiated, consequently there is no breach of the Code.

Report to be considered.