What is DA hiding on corruptive scandal?

Another big corruptive construction scandal has hit the DA run Western Cape government with millions of taxpayer money that allegedly could be lost or misspent. The latest is the biggest scandal of possible fraud and corruption that shakes the DA (see Saturday Argus report).

The DA tries to hide the truth. The ANC demands that premier Helen Zille fully disclose her, her party and government's involvement in this scandal and will use relevant laws to get the documents and to the bottom of the suspected conniving and colluding. So far Zille's silence is deafening.

It has come to light that contracts of almost R610 million were awarded to a company headed by one Mr Sean Loggenberg who is barred until 2024 from serving as a director in any company by the British government Insolvency Services, after another company he headed went into liquidation there. Despite Loggenberg's barring, the DA kept giving him massive contracts through the provincial and Cape Town governments.

The ANC says the DA is negligent and reckless and the ANC will report the latest scandal to all investigating agencies as it is clear alleged corruption, collusion and illegal activities breeds in the relation and dealings with Loggenberg, his company trading as Filcon and the DA.

About R342 million has already been paid to Filcon, without the work or projects completed. Filcon now applied for business rescue. This will be opposed by amongst others the unpaid sub-contractors.

People were also moved from flats to be renovated and still stay in cold metal boxes with the onset of winter rain and many learners in Atlantis attend classes in schools resembling building sites. Two schools are still incomplete and many workers lost their jobs. In Manenberg 110 jobs were lost, in Ottery 70, in Hanover Park 60 and Atlantis 150 people lost their jobs because Filcon did not pay its obligations.

This is a trend by Loggenberg who according to the British authorities has paid himself, but not the people he hired to do the work.

The DA has previously been hit by the findings and fines by the Anti-Competition Commission against corruptive and colluding construction contractors that were paid R5 billion over the tender prices for the Cape Town Stadium and the Bus Route to Blaauwberg - on then mayor Helen Zille's watch!

It is clear that the DA is running for cover in the wake of the big housing and construction scandals that hit the DA administration.

There has been no oversight and no accountability by the DA provincial and city government as large amounts of national funds allocated for housing could have gone missing.

The ANC knows of repeated correspondence to the city by affected sub-contractors about the problem without response by the city.

The ANC contacted the mayor's office and despite promises months later no meeting took place to discuss these pressing issues.

Aggrieved sub-contractors and suppliers oppose Filcon's application for business rescue in the High Court.

It is clear from the business rescue application now in the High Court, that Filcon was awarded contracts to the value of almost R610 million and already received almost R342 million.

The ANC wants to know:

1. How many contracts were awarded to Filcon since Loggenberg took it over?

2. Did the DA government conduct a due diligence background investigation on Loggenberg before awarding these contracts through the principal agents?

3. How much of the money already given to Filcon has been paid over to sub-contractors doing the work?

4. Has the DA investigated the role of the principal agents regarding the Filcon scandal?

5. Has the DA received party funding from Filcon or Loggenberg in his personal capacity?

6. How many times has Sean Loggenberg met public works MEC Robin Carlisle and Zille personally?

7. Has the DA received funding from the principal agents who awarded the contracts to Filcon?

As the ANC we will do the following to get to the bottom of this DA/Filcon housing and construction scandal:

1. The ANC will write to the national minister of human settlements and ask for a forensic audit into the DA/Filcon housing scandal.

2. Based on this report we will consider asking the President to consider issuing a proclamation calling for an SIU investigation.

3. We will seek legal advice about the possibility of joining those applicants who oppose the business rescue application by Filcon.

4. We will approach the Public Protector to investigate maladministration, negligence and lack of oversight by the DA run provincial and city administrations.

5. We will exercise our rights under the Promotion of Access of Information Act 2 of 2000 to obtain full disclosure from Zille, as well as both the provincial government and the City of Cape Town.

All the affected communities will be visited over the next few days.

This scandal must be exposed for what it is: The abuse of public funds by those appointed by the DA provincial and city government.

Statement issued by Cameron Dugmore, ANC Western Cape, April 30 2014

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