27 March 2003
The SACP is outraged at the amount of out-of-court settlement of R21,5 million between Umngeni Water Board and Enterprise Risk Management. Such an amount for a parastatal charged with the provision of one of the most important essential services for the workers and the poor of our country must be cause for serious concern. We are particularly concerned about the fact that this is done between ERM and the board of Umngeni outside of public knowledge as to what led to such a settlement. We are also disturbed by the fact that whether this settlement has been fully discussed and approved by a properly constituted Umngeni board or by some individual members of the Board. It is also not clear whether management of Umngeni has been involved or consulted about this settlement.
The SACP in KZN finds it completely unacceptable that exactly after a day of the arrest of the former head of ERM, Mr Dave King for charges relating to corruption about the very same contract, Umngeni decides to settle.
Surely there is something amiss here and such actions by Umngeni raise very serious suspicions as to what is actually going on here and what is being hidden.
The SACP demands that the Umngeni Board, as custodians of a public entity, publicly disclose all the facts and circumstance surrounding this settlement, particularly in the light of the arrest of Mr Dave King on corruption charges. We cannot allow these parastatals to be run as private companies when taxpayers’ money is involved and, most seriously, workers’ jobs being on the line. We cannot allow the provision of basic services to the mass of the poor people of our country to be compromised under a cloud of mystery and intrigue. The SACP also fully supports NEHAWU’s demand for an independent judicial inquiry into this matter.
The SACP in KZN has been closely following recent developments at Umngeni with great concern. We are not going to rest until this matter is probed fully and independently. The SACP treats this matter so seriously that, failure to probe this matter fully, we will approach NEHAWU, COSATU, the ANC and other progressive forces to embark on mass action until this matter is fully investigated.
For further details please contact:
Simiso Nkwanyana
SACP Provincial Secretary
Cell no. 082 468 7184
Tel: 031 301 3806