Ernest Mabuza
Businessday - Online
Friday, November 10, 2006
Legal Affairs Correspondent
PUBLIC protector Lawrence Mushwana says the loan granted by Imvume CEO Sandi Majali to Social Development Minister Zola Skweyiya's wife does not expose the minister to any conflict of interest involving his department's tender processes.
However, in his report released yesterday, Mushwana found that Skweyiya's failure to disclose the benefit of the interest-free loan granted to his wife, Thuthukile Mazibuko-Skweyiya, in December 2003, constituted a breach of executive ethics.
Mushwana recommended that the cabinet secretary take steps to ensure that Skweyiya made a proper disclosure in terms of the regulations.
In a report presented to Parliament last year on the allegation that PetroSA made payments to Imvume, Mushwana referred to an allegation that R65000 was paid by Imvume to a construction company that was renovating Skweyiya's private residence.
Earlier this year, Mushwana received complaints from a Democratic Alliance MP in connection with the loan.
In his complaint, Hendrik Schmidt claimed that the purpose of the loan to Skweyiya might have been to influence the minister in respect of a social payment system tender for which IT Lynx, in which Imvume had a stake, was bidding.
Schmidt claimed if that was the case, Skweyiya had exposed himself to a conflict of interest between his private interests and his official responsibilities.
In his findings, Mushwana said the final adjudication of the tender for the replacement of the social pension system, in which IT Lynx submitted a bid, took place 19 months before the loan was granted to Skweyiya's wife.
"It could therefore not have constituted the risk of a conflict of interests as contemplated by the executive ethics code in respect of the minister's official responsibilities," Mushwana said.
The report also established that Skweyiya was not aware of Majali's interest in IT Lynx at the time of the loan transaction.
Mazibuko-Skweyiya told public protector investigators that she and her husband contracted Hartkon Construction to carry out renovations at their private residence in Pretoria.
She said the renovations originally specified were modest but that they later revised the original renovations plan, the costs of which exceeded their private savings and disposable income.
The Skweyiyas applied for a bond in October 2003 to cover the costs of the renovations. In December 2003, they received an invoice for payment from Hartkon, which was payable by no later than December 15 2003.
She said although their bond application was approved in November 2003, the money could not be transferred into their account until February 2004 owing to bond registration procedures.
She said she contacted Majali and requested him to advance her the money. She said the loan had been fully repaid in six instalments in 2004.
In a separate report, Mushwana also cleared 17 ministers and deputy ministers who were found by the auditor-general to have failed to disclose their financial interests.