Friday, August 7, 2009

Former Cape Town mayors face off

A sequel in the battle for political control over the City of Cape Town began yesterday before Parliament's standing committee on public accounts (Scopa). Fingers were pointed at two former mayors - one ANC and the other DA - for allegedly meddling in the government's N2 Gateway housing project .

MPs, mainly from the ANC, asked why action had not been taken against city officials, including former city manager Wallace Mgoqi, who, together with former mayor and now ANC MP Nomaindia Mfeketo, apparently rammed through a decision by an advisory board to overturn a bid committee's recommendation over appointment of a management team for the housing project.

A black empowerment company, Cyberia Technologies, was recommended for appointment by the goods, services and property advisory board, overturning a bid committee decision recommending a company called Africon. Although a top city official tried to convince Mfeketo not to follow the board's recommendation, Mgoqi signed it off.

Cyberia - whose directors were Achmad Fuad Udemans, Taherah Matthews and Brian Shamrock - was paid R12.6 million before the contract was ended in January 2006. This included an amount of R5m paid at the end of 2004 and other payments of R3m and R4.6m. The city told Scopa that Mgoqi twice extended the contract.

ANC MP Roy Ainslie accused Mfeketo's successor, Helen Zille, now Western Cape premier, of "sabotaging" the N2 Gateway project. As mayor, he claimed, she instructed city officials not to attend the project's steering committee meetings, which included the provincial and national departments of housing. Zille, the DA leader, served as mayor from March 2006 until April this year.

DA MP Mark Steele objected to the inference, noting that city involvement had been removed - by the central government - from the housing project ahead of the March 2006 election when the DA coalition took power from the ANC.

It emerged that recently the city took the decision to participate again, but failed to attend a recent meeting. - Business Report

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