NMBRA and Afriforum PE threaten to sue Municipal officials over ‘IPTS corruption’

JANUARY 5, 2015

The Nelson Mandela Bay Ratepayers Association (NMBRA) and Afriforum PE on Monday threatened to sue Nelson Mandela Bay Municipality senior officials over alleged corruption amounting to several millions of Rands in the roll out of the municipality’s Integrated Public Transport System (IPTS).

In an email addressed to the Nelson Mandela Bay Municipality’s City Manager, Mpilo Mbambisa; Chief Financial Officer, Trevor Harper; Head of IPTS, Adv Mhiele Tshamasa; Head of Supply Chain management, Ndiphiwe Mantyontya as well as President Jacob Zuma; Minister of Cooperative Governance and Traditional Affairs, Pravin Gordhan; Minister of Tourism, Derek Hanekom,  and National Treasury’s Chief Director: Local Government Budget Analysis, Jan Hattingh, Kobus Gerber, NMBRA Chairperson alleges that the IPTS has become a cashcow for the corrupt officials and businessmen.

He said the latest payments of R4.97 million made to Kyoscan in December 2014 relates to the continued compensation for taxi operators presumably affected by the roll out of the IPTS.

“…we all know [they] were not affected, whilst the 60 taxi's remain in storage and despite the fact that the previous payment made was in full and final settlement,” Gerber wrote.

He alleges that the NMBM effected payments amounting to R18 million for compensation to Kyoscan for the 12 month pilot phase, however, the total income received from the operation of the buses was only R1,8 million.

“In addition, payments to the value of R2.4 million were made to Stratcom for a Gospel and Wrestling event at the 2014 Splash Festival, events which never took place. There are many other examples which can be added,” Gerber said.

“The R1.9 billion IPTS grant funding received from National for the NMBM IPTS implementation has become a milkcow for corrupt officials, businessmen, attorneys and politicians.”

No end to corruption

He said that, as a result, the NMBRA and AfriForum PE have served a report on the corruption relating to the NMBM IPTS to six organs in Government. 

“National Treasury has further contracted Deloitte's to do a full forensic audit on all IPTS payments made from inception to date. The forensic audit which commenced late November by Deloitte's has not managed to put a halt to the corrupt activities of politicians and officials who continue the abuse of taxpayers monies,” Gerber wrote.

“The NMBRA and AfriForum PE are now trying to stop all IPTS grant payments from National to NMBM but until that happens there is no other way forward to stop the IPTS rot from continuing but to now sue all officials including the CM, CFO, Head IPTS and SCM in order to  recover the hundreds of millions wasted by them.

“We have previously warned the CM and CFO to stop all appointments via a deviation process which is against Section 217 of the Constitution of South Africa relating to a fair procurement process.

“By suing you in your personal capacity and obtaining judgment against you it will have the effect of preventing political interference.”

He said that Section 171 of the Municipal Financial Management Act (MFMA) allows for disciplinary proceedings against the Accounting Officer, Chief Financial Officer, senior manager and/or other official in the event of financial misconduct by the official concerned.

“The time to hold officials accountable for the abuse of ratepayers monies has arrived. This message will be repeated to make sure that every NMB resident are aware of what’s to come in 2015.”

The NMBRA also released the documents below to highlight its case:

1. Stratcom Payments click here.

2. Mott Macdonald Payments click here and here.

3. Kyoscan Payments click here.