Questions are being raised over the use of "blind trusts" by politicians after it was revealed that one of Tokyo Sexwale's companies had been awarded the tender for security at the King Shaka International Airport.
Human Settlements Minister Sexwale confirmed his interests were held in a blind trust and that he had not been aware of the tender.
Checkport, the company that won the tender at the end of March, is a subsidiary of Swissport - of which 49 percent is owned by Sexwale's Mvelaphanda Holdings Group.
Swissport has a contract for all ground handling at 10 airports nationally.
Sexwale's spokesperson Chris Vick said Sexwale was unaware of the contract at King Shaka International Airport, because his assets were being kept in a blind trust - in line with requirements of the Parliament's executive ethics code of conduct.
A blind trust is a trust where a person, particularly a political office bearer, places their interests or assets under the control of an independent and professional person or agency, without knowing how the assets are being administrated. The aim is to avoid a conflict of interest. For example, shares may be held in a company on behalf of a politician, and that company subsequently wins a tender, the conflict of interest is neutralised because the politician would have no knowledge of, or influence over the transaction - as has been the case with the security tender at the new airport.
Sexwale resigned as director from all 43 boards of companies last year on taking office, saying he could not work in the private sector because he was fully focused on his responsibilities as a minister.
The Public Service Accountability Monitor welcomes a blind trust as a way to reduce a conflict of interest, but argues such trusts are not fool-proof.
"The management of blind trusts may be manipulated in ways which defeat their intentions, and members may also use proxy investors to conceal their interests. Perhaps, in time to come, more attention will be paid to the regulation and oversight of blind trusts," said the monitor's Derek Luyt.
While welcoming the use of a blind trust as a measure to avoid a conflict of interest, DA MP Deon George warned that it was also open to abuse.
"A 1989 commission in the UK concluded that blind trusts for politicians are incompatible with transparency and accountability and the DA shares this view.
"They are open to abuse and should be subject to public scrutiny through a process of public declaration," he said.
George also called for Sexwale's assets to be open to public scrutiny.
"His vast wealth was acquired through the process of so-called Black Economic Empowerment - a network of political connectivity that enriched the small elite and left behind the majority of those who should have benefited.
"He is politically connected and exposed and this makes the need for complete transparency over his assets - including piercing the veil on his blind trust so that good governance can be seen to be done through a transparent process - all the more necessary. We cannot assume that blind trusts will not be abused," George said.
Human Settlements Minister Sexwale confirmed his interests were held in a blind trust and that he had not been aware of the tender.
Checkport, the company that won the tender at the end of March, is a subsidiary of Swissport - of which 49 percent is owned by Sexwale's Mvelaphanda Holdings Group.
Swissport has a contract for all ground handling at 10 airports nationally.
Sexwale's spokesperson Chris Vick said Sexwale was unaware of the contract at King Shaka International Airport, because his assets were being kept in a blind trust - in line with requirements of the Parliament's executive ethics code of conduct.
A blind trust is a trust where a person, particularly a political office bearer, places their interests or assets under the control of an independent and professional person or agency, without knowing how the assets are being administrated. The aim is to avoid a conflict of interest. For example, shares may be held in a company on behalf of a politician, and that company subsequently wins a tender, the conflict of interest is neutralised because the politician would have no knowledge of, or influence over the transaction - as has been the case with the security tender at the new airport.
Sexwale resigned as director from all 43 boards of companies last year on taking office, saying he could not work in the private sector because he was fully focused on his responsibilities as a minister.
The Public Service Accountability Monitor welcomes a blind trust as a way to reduce a conflict of interest, but argues such trusts are not fool-proof.
"The management of blind trusts may be manipulated in ways which defeat their intentions, and members may also use proxy investors to conceal their interests. Perhaps, in time to come, more attention will be paid to the regulation and oversight of blind trusts," said the monitor's Derek Luyt.
While welcoming the use of a blind trust as a measure to avoid a conflict of interest, DA MP Deon George warned that it was also open to abuse.
"A 1989 commission in the UK concluded that blind trusts for politicians are incompatible with transparency and accountability and the DA shares this view.
"They are open to abuse and should be subject to public scrutiny through a process of public declaration," he said.
George also called for Sexwale's assets to be open to public scrutiny.
"His vast wealth was acquired through the process of so-called Black Economic Empowerment - a network of political connectivity that enriched the small elite and left behind the majority of those who should have benefited.
"He is politically connected and exposed and this makes the need for complete transparency over his assets - including piercing the veil on his blind trust so that good governance can be seen to be done through a transparent process - all the more necessary. We cannot assume that blind trusts will not be abused," George said.
- DailyNews
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