AfriForum and Nelson Mandela Bay Ratepayers Association hand over report of large-scale fraud to Public Protector

OCTOBER 28, 2014

The Vice Chairman of the AfriForum branch in Port Elizabeth, Kobus Gerber and the General Advisor of Community Structures at the civil rights organisation, Pieter Rautenbach in partnership with the Nelson Mandela Bay Taxpayers’ Association on Tuesday announced that they had submitted a report containing information regarding large-scale fraud in the Nelson Mandela Bay Metropolitan Municipality to Public Protector, Adv Thuli Madonsela. 

The report stems from the R2 billion which was allocated to a bus transport system for the Metro after the 2010 Soccer World Cup Tournament.

According to AfriForum and the Nelson Mandela Bay Taxpayers’ Association, taxis were removed from certain routes, and the Metro is still paying more than R6 500 per taxi per month in compensation to taxi owners, while no buses have been placed on the routes. The new buses and more than 60 taxis have been gathering dust in storage for years. More than one company were appointed to deal with the administration and payment of taxi owners.

The organisations claim that hundreds of millions of rand were paid to consultants without the project being finalised. Investigations exposed that eight companies - which the Metro is working with - belong to the same person. Thirty million rand was paid out to consultants for marketing of the bus system which does not exist.

“Advocate Madonsela told businessmen and –women in Port Elizabeth on Thursday that the business fraternity should not think that they will make money by ‘feeding the crocodile’. She said the same crocodile will in the end bite its feeder. We will continue to bring business people, local government officials and politicians to book when they transgress,” Gerber said. 

Rautenbach, General Advisor of Community Structures at AfriForum announced that they will also focus their attention on alleged irregularities in the office of the mayor regarding the establishment of satellite offices allegedly used as political recruitment offices. 

“The expenses of speakers who addressed the ANC Caucus were paid by the office of the mayor with taxpayers’ money,” Rautenbach concluded.

Photo caption: Left to right... Kobus Gerber, Adv Madonsela and Pieter Rautenbach.