ATC091113: Report on Findings of Auditor-General on Audit of Disclosure of Interest by Members
Higher Education, Science and Innovation
REPORT TO THE JOINT COMMITTEE ON ETHICS AND MEMBERS INTERESTS ON THE FINDINGS OF THE AUDITOR GENERAL WITH RESPECT TO THE AUDIT OF THE DICSLOSURE OF INTERESTS BY MEMBERS
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)
Gxowa , NB (ANC)
Njobe, MAA (ANC)
Rajbally, S (MF)
Seaton, SA (IFP)
National Council of Provinces
Dlulane, BN (ANC)
Matlanyane, H (ANC)
Moseki , AL (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
Ntwanambi ND (ANC)
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
Members 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.
Mentor , VMP Ms
It is alleged that the Member did not disclose the following:
Company Information
Vakazi Holdings Registration number 2003/004864/06
Members 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
Members 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 Pacific Heights , in which Mr Jones states that he had not informed Mr Mlangeni when the company was registered.
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.
Ngcengwane , ND Ms
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
Members 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
Siphiwe Montessori School Registration number 1996/009654/08
Members 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 Siphiwe Montessori School which is now closed.
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
Members 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 Eyathu Sonke Driving School .
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
Members 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
Members 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
Berg Street Three Properties Registration number 1985/011149/23
Imbenge Group Registration number 1997/001649/07
Imbenge Properties Registration number 1997/001145/07
Members 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.
Documents
No related documents