Patriotic Alliance (PA) leader Gayton McKenzie has been ordered to submit records of his fundraising project as the executive mayor of the Central Karoo District Municipality in the Western Cape.
The application, which was heard at the Cape Town High Court, was brought forth by Anton Bredell, MEC for local government, environmental affairs and development planning in the Western Cape, alongside investigators.
Suspicions of corruption
Bredell suspects serious malpractices under the municipality, including maladministration, fraud and corruption, among others.
The MEC therefore requests that McKenzie, along with other respondents, offer full cooperation with the investigators in this matter. This means releasing files on the fundraising projects held after joining office as the executive mayor.
McKenzie had organised “Bring New Life to the Desert”, a fundraising initiative hosted at Sandton Hotel. A seat was R2,000, a table at R20,000 and a District Mayoral table went for R100,000.
He insisted that all the money collected from the fundraising events were not part of municipal funds.
For this reason, this revenue was deposited into the account of Botha E & Erasmus Y Inc. It is a law firm listed as the third respondent in this matter.
Botha E & Erasmus Y Inc, had refused provide the files under the attorney/client privilege. It also cited potential breach of POPIA, unless the court ordered them to do so.
“Third respondent’s primary concern appears to be protecting the confidentiality of its trust creditors. [Also] protecting the identity of depositors for the fundraiser that obtained no undue preference or advantage as a consequence of participating in the the fundraiser. And ensuring …that the disclosure of its Trust bank account did not exceed the period in which funds were collected and expended for the fundraiser,” reads the document.
McKenzie opposed the application
McKenzie opposed the application as he believed that the Botha E & Erasmus Y Inc bank account extended beyond the time the monies in question were paid into it and disbursed by it.
He said it was important that they protect the information that have nothing to do with the matter at hand.
“The funds were not municipal revenue and not monies received by the municipality for the purpose of relief. Therefore, the provisions of Section 12 of the local government MFMA do not apply. And there is no lawful basis upon which to have instituted an investigation,” reads the court papers.
McKenzie claimed that he had made public promises to prove change. This under the municipality within his first 100 days in office. However, he realised that the municipality did not have enough money for him to effect his service delivery vision.
According to the documents, it was with permission from the municipality that he started fundraising projects. These were considered his personal projects. Revenue collected was used to buy toilets, pipes and a septic tank. Also to repair swimming pools, and hire diggers, among others.
He allegedly topped up with his personal funds, and the municipality never contributed to any of these projects.
“The raising of the funds, and paying for the projects, could therefore not legitimately be considered to be maladministration of the affairs of the Municipality. This for the purposes of an inquiry in terms of Section 106 of the Systems Act.”
Used his position as mayor
The court found that while McKenzie insisted that he acted in his personal capacity, he still used his position as mayor. He did so to draw in the funds and regularly alleged that he was using the funds to better the municipality while in office.
As such, he was ordered to cooperate. It was granted that the conduct falls within the mandate of the investigators. This for them to investigate corruption and maladministration in the municipality.
“That investigation, however, while necessary for the implementation of the minister’s obligations under the Systems Act, does not preclude an investigation by the Public Protector nor by the SAPS,” reads the document.
