Breaking News: MEC Bredell’s corruption letter to Knysna Speaker Titi Gombo
This corruption letter will slap more than Knysna to attention. Desperate to hang onto power, the leadership of the Democratic Alliance has been leopard crawling through the fynbos and ostrich droppings in our Garden Route towns. There are forces afoot, so this letter cannot be considered an honest step towards accountability by the Western Cape Government (WC). But it is interesting.
WHAT’S IN THE LETTER?
The letter was sent by MEC Local Government Anton Bredell to Knysna Speaker Titi Gombo (ANC).
The many corruption and maladministration issues within appear to be the result of complaints by Susan Campbell’s Knysna Ratepayers’ Association, Ralph Stander’s Knysna United, and me. One could be more directly motivated by the DA, for whom Bredell doubles as their Western Cape Chairperson.
Subjects include illegal construction on Thesen Islands, R64-million in Public properties removed from the asset register, the disappearance of Knysna Fire monies, irregular water meter and Hornlee construction tenders, irregular appointments of engineering consultants, the under and overcharging of NERSA ‘electricity’ fees to consumers, the De Swardt investigation report, the failure to return MIG and INEP funds to higher Government, an informal settlement on a sensitive dune area, the 71-million loan from DBSA, and the failure to institute timely disciplinary proceedings against Municipal Manager Sitembile Vatala, Legal Adviser Melony Paulsen, Mayor Elrick van Aswegen and ex-DA Councillor Donovan Pofadder.

Knysna Speaker Mertle ‘Titi’ Gombo (ANC)
The letter is dated 23 June 2020. It was CCied to Mayor Elrick van Aswegen (COPE), and Municipal Manager Dr Louis Scheepers. Speaker Gombo was given 15 working days to respond. That makes the deadline next week Tuesday, 14 July 2020.
As exciting as this seems, Knysna is a forest of corruption, not a bush – issues were excluded. And, at last week’s Council Meeting, the DA, ANC and COPE chose not to suspend CFO Mbulelo Memani despite him having the most allegations against him. We also know, repeated throughout our history, that cover-up normally follow a letter.
MEC Bredell has not responded directly to any of my complaints for years, including those here. As Western Cape Chair of the DA, he hasn’t taken any action against his smaller colleagues. In fact, he allowed fraudsters Eleanore Spies and Rowan Spies to be promoted, respectively to the National Assembly and Garden Route District (which controls Knysna Municipality).
Regards my complaints against Bredell, he’s protected by Helen Zille, the DA Federal Executive, the DA-led Western Cape Legislature and Premier Alan Winde. Knysna has a lot of enemies.
ANC Speaker Titi Gombo may smile but she has never acted on my complaints either. AT various stages, members of the ANC have secretly worked with the DA.
It’s inferred that some of these issues were in Bredell’s a previous letter to Gombo, on 30 April 2020. If so, why did Bredell take 2 months to follow-up on serious issues, allowing COPE’s Van Aswegen to take over the town with support from the ANC? Why was crooked CFO Memani allowed to plan the annual budget? Why, in between, did the DA create a crisis that had the goal of dissolving Knysna’s democracy so that Bredell’s provincial department could take over running the town?
Neither Bredell or Gombo will mention the allegations against ANC Deputy Mayor Aubrey Tsengwa.
Acting Municipal Manager Scheepers and Mayor van Aswegen won’t act on my complaints. Instead, they repeatedly blocked me during a half hour conference last month.
Is MEC Bredell sending this letter to?
- Find reason to restart the DA’s attempted takeover of Knysna by cherry-picking issues that, overall, favour them;
- try cover his arse;
- or does he have serious intention considering he’s under pressure from several directions for his attacks against Garden Route towns for his true master, the DA?
The latter pressure began 10 days before the date of this letter, when I exposed the secret recording of him plotting to take over Oudtshoorn. The ANC, GOOD and ICOSA have since posted strong statements against him, Parliament has begun asking questions, and GOOD submitted complaints against him and Premier Winde to the Public Protector.
MEC ANTON BREDELL’S CORRUPTION LETTER
The Speaker
Knysna Municipality
P.O. Box 6570
Knysna
6570
Per Email: Mgombo@knysna.gov.za
Copied to:
Mr Elrick van Aswegen
The Executive Mayor
Per email: evanaswegen@knysna.gov.za
Dr Louis Scheepers
The Municipal Manager (Acting)
Per email: mm@knysna.gov.za / lscheepers@knysna.gov.za
REFERENCE: 3/11/2/16
Dear Councillor Gombo
ALLEGATIONS OF FRAUD, CORRUPTION, FINANCIAL MALADMINISTRATION OR ANY OTHER SERIOUS MALPRACTICE AT KNYSNA MUNICIPALITY
1. I refer to my previous letter dated 30 April 2020. Kindly note that my office has received a number of further allegations relating to possible maladministration, fraud, corruption or other serious malpractices which has occurred or is occurring in Knysna Municipality (“the Municipality”).
2. The allegations relate to the following:
2.1. The irregular business dealings with a company, known as, Sakhikhaya Suppliers CC, providing prepaid water meters to the Municipality pertaining to the following matters (these are additional allegations relating to the procurement of prepaid water meters, as outlined in my letter dated 30 April 2020):
• The Municipality spent about R113 million on the prepaid water meters, at inflated prices and without any prospects of recovering such expense. It is alleged that the number of prepaid water meters purchased significantly over-exceeded the demand required. It is furthermore alleged that many of the water meters are currently in store rooms and not installed. It is alleged that this expenditure amounts to irregular or fruitless and wasteful expenditure;
• The Auditor-General made an adverse finding against the procurement of the abovementioned prepaid water meters, but the Municipality proceeded with the procurement thereof;
• The Municipality forced prepaid water meters onto poor and vulnerable communities, while at the same time not doing the same in other affluent areas;
• A company, known as Sakhikhaya Suppliers CC, leased, procured or obtained a property owned by the Municipality, without following due process; and
• The CFO of the Municipality, is associated with the employees and/or the members of the corporate entity, Sakhikhaya Suppliers CC, whose services the Municipality procured to provide the water metering services.
2.2. Irregularities pertaining to the replacement of asbestos roofs of RDP houses in Hornlee.
2.3. The irregular approval of building plans by the Manager: Land Use Manager, Mr Hennie Smit, pertaining to properties adjacent to the Boatshed, that exceeded the permitted roof height. It is alleged that these approvals are unlawful, as the applicant(s) failed to submit an application for departure and/or other relevant land use applications;
2.4. The failure of the Municipality to disclose immoveable properties, valued at approximately R64 Million, as Contingent Assets in its Annual Financial Statements (“AFS”) for the 2018/2019 financial year and providing false or misleading information to the Auditor-General relating to the failure to disclose such assets;
2.5. The irregular procurement process followed in Tender No. T03/2019/20, regarding the “Construction of Concrete Slabs and Top Structures in Hornlee”, and the role of the CFO as chairperson of the BAC;
2.6. The irregular procurement process followed in Tender No. T41 of 2018/19, regarding the “Hornlee Sewer Upgrade Knysna”, and the role of the CFO as chairperson of the BAC;
2.7. The irregular procurement process followed in Tender No. T06/2019/2020, regarding the “Hornlee Sewer Upgrade”. It is alleged that this tender was advertised shortly after the cancellation of Tender No. T41/2018/19. It is alleged that the tender was awarded but the CFO subsequently recommended the reversal of the award, which advice was followed by the Municipal Manager. It is alleged that the reversal was irregular, as there was no appeal or objection and the tender had been finally awarded to the successful bidder;
2.8. The failure of the Municipality to take adequate action against those implicated in the “De Swart Report”;
2.9. The failure of the Municipality to institute and/or finalise disciplinary hearings against Councillors, Van Aswegen and Pofadder for their undue interference in the administration of the Municipality and their role for preventing people from getting houses;
2.10. Maladministration relating to the mismanagement of the fire emergency donations;
2.11. Maladministration requiring the Municipality to apply for a loan in the amount of R71 million, from the Development Bank of Southern Africa (“DBSA”), to cover-up shortfalls in other projects;
2.12. The failure of the Municipality to timeously investigate and/or discipline the CFO for various allegations of irregularities, which includes, the CFO’s intentions towards keeping MIG and IMEP funds he was supposed to have returned;
2.13. The irregularity regarding the Municipality’s failure to refund electricity customers, who were charged more than the regulated NERSA rate;
2.14. The failure of the Municipality to timeously institute and commence with disciplinary proceedings against the Municipal Manager, Dr. Vatala for various allegations of irregularities;
2.15. The failure of the Municipality to take adequate action regarding the establishment of an informal settlement on a dune situated in or about Groenvallei, Sedgefield, including the installation of municipal services without the required authorisations; and
2.16. Irregularities relating to Tender No. 36/2019/20 regarding the appointment of consulting engineers for various municipal infrastructure and building projects.
3. In terms of section 5 of the Western Cape Monitoring and Support of Municipalities Act, 2014 (Act 4 of 2014) (“the Western Cape Act”), I am obliged, before taking any steps in terms of section 106(1) of the Local Government: Municipal Systems Act, 2000 (Act 32 of 2000) (“the MSA”), to inform you of relevant information which I have received and to afford you with an opportunity to comment thereon.
4. I hereby request that you provide this office with a clear and comprehensive response, in writing, to the abovementioned allegations and provide all relevant supporting documentation, including:
Allegation relating to the water metering company-
4.1. Copies of the relevant Municipal file and documents relating to the provision of a municipal building or municipal owned building to Sakhikhaya Suppliers CC;
4.2. Copies of all relevant Council agenda’s and subsequent Council resolutions taken in respect of the provision of such building to Sakhikhaya Suppliers CC;
4.3. Copies of any agreements entered into between the Municipality and Sakhikhaya Suppliers CC in relation to the provision of a municipal building or municipal owned building to Sakhihaya Suppliers CC;
4.4. If no competitive bidding process was followed, adequate reasons must be provided, which must include the legal prescripts that the Municipality relied on, not to follow such a process; and
4.5. All relevant signed Municipal policies;
Replacement of Asbestos roofs-
4.6. Provide information and documentation on the Municipality’s strategy and actions taken to replace asbestos roofs of RDP houses within its municipal area.
Approval of building plans for properties adjacent to the Boatshed-
4.7. Provide a list of the properties adjacent to the Boatshed in respect of which the Municipality recently approved building plans;
4.8. Provide the application forms, objections thereto and the respective decisions taken by the Municipality in this regard;
4.9. Provide a copy of any specialist studies that accompanied such applications;
4.10. Provide a copy of the respective approved building plans, diagrams etc. depicting the extent of the respective buildings;
4.11. Provide a copy of the Conditions of Approval for any approvals granted; and
4.12. Provide information on whether any departure applications were accompanied by the building approval application, if not, the reasons why.
Providing false or misleading information to the Auditor-General-
4.13. Information relating to the failure of the Municipality to disclose immovable property to the value of R64 million, as a contingent asset, in the 2018/2019 financial year; and
4.14. The 2018/19 financial year statements;
4.15. The 2018/19 Audit report and management report;
4.16. Information, documentation, copies of all correspondence with the Auditor- General and submissions to the Auditor-General relating to the contingent asset disclosure in the 2018/19 financial year.
The irregular procurement process followed in Tender No. T03/2019/20
4.17. Copies of the supply chain management file and documents relating to the appointment of the service provider, regarding the “Construction of Concrete Slabs and Top Structures in Hornlee” (including any needs assessment conducted; tender advertisement; tender bids received; briefing register; minutes of the compulsory briefing session; minutes of the Bid Specification meeting(s); minutes of the Bid Evaluation meeting(s); minutes of the Bid Adjudication meeting(s));
4.18. Copies of all relevant Council agenda’s and subsequent Council resolutions taken with regards to the approval of the tender;
4.19. Copies of any agreements entered into between the Municipality and the service provider; and
4.20. Details of all payments made and budget allocated for the services of the service provider, which should include, but not be limited to, copies of payment documentation containing invoices with the relevant supporting documents such as requisitions compiled, orders issued and votes used for payments made in this regard.
The irregular procurement process followed in Tender No. T41 of 2018/19-
4.21. Copies of the supply chain management file and documents relating to the appointment of the service provider, regarding the “Hornlee Sewer Upgrade Knysna” (including any needs assessment conducted; tender advertisement; tender bids received; briefing register; minutes of the compulsory briefing session; minutes of the Bid Specification meeting(s); minutes of the Bid Evaluation meeting(s); minutes of the Bid Adjudication meeting(s));
4.22. Copies of all relevant Council agenda’s and subsequent Council resolutions taken with regards to the approval of the tender;
4.23. Copies of any agreements entered into between the Municipality and the service provider; and
4.24. Details of all payments made and budget allocated for the services of the service provider, which should include, but not be limited to, copies of payment documentation containing invoices with the relevant supporting documents such as requisitions compiled, orders issued and votes used for payments made in this regard.
4.25. All the information relating to the cancellation of the tender (including the reasons for the cancellation of the tender).
The irregular procurement process followed in Tender No. T06/2019/2020-
4.26. Copies of the supply chain management file and documents relating to the appointment of the service provider, regarding the “Hornlee Sewer Upgrade” (including any needs assessment conducted; tender advertisement; tender bids received; briefing register; minutes of the compulsory briefing session; minutes of the Bid Specification meeting(s); minutes of the Bid Evaluation meeting(s); minutes of the Bid Adjudication meeting(s));
4.27. Copies of all relevant Council agenda’s and subsequent Council resolutions taken with regards to the approval of the tender;
4.28. Copies of any agreements entered into between the Municipality and the service provider; and
4.29. Details of all payments made and budget allocated for the services of service provider, which should include, but not be limited to, copies of payment documentation containing invoices with relevant supporting documents such as
requisitions compiled, orders issued and votes used for payments made in this regard.
De Swart Report [De Swardt Vogel Myabo report]
4.30. A copy of the “De Swart Report” including annexures; and
4.31. A detailed account on all action taken following receipt of the De Swart Report including remedial measures undertaken by the Municipality, in response to the findings and recommendations made by the De Swart Report [this implicates Legal Adviser Melony Paulsen, friend of Mayor Elrick van Aswegen].
Disciplinary hearings against Councillors, Van Aswegen and Pofadder
4.32. A copy of the investigation report with regard to the investigation into the allegations against the respective councillors;
4.33. A copy of the charge sheet, specifying the charges against the respective councillors;
4.34. Provide copies of all Resolutions taken by the Municipal Council and Memoranda, with regards to the above matter; and
4.35. Provide a detailed report on the status of the disciplinary action taken against the respective councillors.
Fire Emergency Donations-
4.36. Information on all the donations received by the Municipality in relation to the 2017 wildfires;
4.37. A copy of the Victims Register;
4.38. Information on the number of residents, registered on the Victims Registers, who benefited from these donations, including details of how such residents benefited; and
4.39. A detailed breakdown of how the donations received were utilized and whether any donation funds have not been utilized.
DBSA Loan Agreement-
4.40. A copy of the loan application made to the DBSA;
4.41. Adequate reasons why the Municipality requires a loan from the DBSA for an amount of R71 million (this must include an outline on how these funds are intended to be spent by the Municipality);
4.42. A list of all projects which the funding from the DBSA is intended to be used, should the loan be granted. Copies of all documentation relating to such projects, including:
• copies of the supply chain management file and documents relating to the appointment of any service providers (including any needs assessment conducted; tender advertisement; tender bids received; briefing register; minutes of the compulsory briefing session; minutes of the Bid Specification meeting(s); minutes of the Bid Evaluation meeting(s); minutes of the Bid Adjudication meeting(s));
• all payments made and budget allocated for the services of service provider, which should include, but not be limited to, copies of payment documentation containing invoices with relevant supporting documents such as requisitions compiled, orders issued and votes used for payments made in this regard;
• Copies of all relevant Council agenda’s and subsequent Council resolutions taken with regards to the approval of the project and tender; and
• Copies of any agreements entered into between the Municipality and the service provider.
Disciplinary process of the CFO-
4.43. Provide adequate details on the status of the disciplinary action taken against the CFO, Mr. Mbulelo Memani; and
4.44. Provide a copy of the investigation report and any other documentation in relation to Mr. Memani’s disciplinary hearing (this should include a copy of the charge sheet, evidence that the Municipality relied on to prove its case and any other relevant information).
Failure to refund electricity customers-
4.45. Provide information relating to the Municipality’s failure to refund electricity customers, where they were charged above the regulated NERSA rate; and
4.46. If applicable, what steps the Municipality has taken to reimburse its customers adversely affected by such billing.
Disciplinary process of the MM
4.47. Provide details on the status of the disciplinary action taken against the MM, Dr. Vatala;
4.48. Provide a copy of the investigation report and any other documentation in relation to Dr. Vatala’s disciplinary hearing (this should include a copy of the charge sheet, evidence that the Municipality relied on to prove its case and any other relevant information); and
4.49. A copy of the Municipality’s response to Dr. Vatala’s legal representative, arguing that the suspension of Dr. Vatala’s suspension is automatically lifted, as the Municipality failed to commence with the disciplinary hearing within three months, as prescribed by section 6(7) of the Local Government: Disciplinary Regulations for Senior Managers, 2010.
The establishment of an Informal Settlement, Sedgefield-
4.50. Provide information and documentation on the Municipality’s strategy to deal with the informal settlement established on a dune in Sedgefield;
4.51. Provide information on whether the Municipality intends to relocate the residents of the informal settlement; and
4.52. Provide information on whether the Municipality communicated with the Department of Environmental Affairs and Development Planning on the environmental issues associated with the development of an informal settlement in a sensitive area (these include pollution issues, structural integrity of the dunes to accommodate such structures, potential listed activities being triggered in terms of the Environmental Impact Assessment Regulations, 2014, promulgated in terms of the National Environmental Management Act 107 of 1998).
Irregularities relating to Tender No. 36/2019/20
4.53. Copies of the supply chain management file and documentation relating to the appointment of the service provider(s) (including any needs assessment conducted; tender advertisement; tender bids received; briefing register; minutes of the compulsory briefing session; minutes of the Bid Specification meeting(s); minutes of the Bid Evaluation meeting(s); minutes of the Bid Adjudication meeting(s));
4.54. Copies of all relevant Council agenda’s and subsequent Council resolutions taken with regards to the approval of the tender;
4.55. Copies of any agreements entered into between the Municipality and the service provider(s);
4.56. Details of all payments made and budget allocated for the services of service provider(s), which should include, but not be limited to, copies of payment documentation containing invoices with relevant supporting documents such as requisitions compiled, orders issued and votes used for payments made in this regard; and
4.57. The reasons why the Municipality disregarded the tender proposal of Ithemba Project Managers and Consultants.
5. Please provide the information and documentation referred to in paragraph 4 above as a matter of urgency and within 15 working days of signature of this letter in order for this office to (i) objectively assess whether there might be any reason to believe that your Municipality cannot or does not fulfil its statutory obligation binding on your Municipality or that maladministration, fraud, corruption or any other serious malpractice has occurred or is occurring in your Municipality; and (ii) determine whether and to what extent further steps need to be taken to investigate the allegations.
6. In the event that this office does not receive a response from you by the date stipulated in paragraph 5 above, I will presume that the Municipality does not intend commenting on the abovementioned matters of concern and that this office may proceed to objectively assess the relevant information in its possession to determine whether and to what extent further steps need to be taken to investigate the allegations.
Yours sincerely,
A Bredell
Minister
Date: 23/06/2020
Ministry of Local Government, Environmental Affairs and Development Planning
1 Dorp Street, Cape Town, 8001 Private Bag X9186, Cape Town, 8000
tel: +27 21 483 3915 fax: +27 21 483 6081 www.westerncape.gov.za
A pdf of the original letter can be downloaded here.
Read my response/complaint to MEC Bredell and the Auditor General.
This is #Day 16 of my 100 Days of Activism against Corruption.