Officials ask for probe into five Tsika dealings

31 January 2006

Denver Donian

FIVE matters mainly revolving around suspended Buffalo City manager Mxolisi Tsika have been referred to the Special Investigation Unit (SIU) for possible investigation.
Two of the allegations against Tsika are:
- Alleged interference in the tender for East London's R1,8 billion bank account; and
- Alleged signing of a R6m tender related to the Property Rates Act.
These issues are noted in the Auditor-General's (AG) annual audit of the city's accounts.
The audit also refers to three other matters, but details of these could not be established.
In the audit, AG Singa Ngqwala noted that "five issues” were referred to the SIU by Buffalo City officials in October.
These are currently subject to pre-investigation to determine whether a Presidential proclamation for a formal investigation should be requested.
Ngqwala could not be reached for comment yesterday.
SIU spokesperson Advocate Gerhard Visagie yesterday said the unit was aware of the AG's report and the request by Buffalo City officials for five matters to be investigated. "The unit has not started a formal investigation,* he confirmed.
Buffalo City chief financial officer, Brian Shepherd, yesterday said he was aware of the bank tender interference issue, as well as the property rates tender matter which he had not been prepared to sign.
After he had declined to sign the tender document it was allegedly referred to the office of the suspended City Manager and apparently finalised.
According to a well-placed source, Tsika allegedly signed the tender document despite it containing the names of several councillors who, by law, are prohibited from tendering for municipal contracts.
Tsika allegedly failed to bring this to council's attention.
The bank tender interference issue emerged in November when a Daily Dispatch report revealed that Tsika's fellow director in a company called Ntsika Fishing, Henderson Mdleleni, had approached FNB with an offer to mediate in the bank's tender for Buffalo City's R1,8 billion municipal bank account.
Matthew Moonieya, director in the office of the mayor, yesterday declined to confirm or deny that the bank and rates tenders were among municipal charges of misconduct expected to be served on Tsika soon.
He did, however, say that a disciplinary hearing was in the pipeline, but "is an internal matter at this stage*.
Tsika was put on preventative suspension in November by Mayor Sindisile Maclean. He is expected to face a disciplinary hearing shortly.
Tsika is challenging his suspension in the Labour Court and is waiting for a date for the hearing to be set.
Speaking from Johannesburg yesterday Maclean said the disciplinary hearing was an administrative legal process that must take its course unhindered, respecting the rights and dignity of all concerned.

Source: Daily Dispatch

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