Police must investigate Deputy Minister Godongwana

I will today ask the South African Police Service to open a criminal investigation into what we believe are the corrupt activities of Deputy Economic Development Minister, Enoch Godongwana.

Evidence emerging in the enquiry into Canyon Springs Investments indicates that Mr Godongwana could well be in breach of section 4 of the Prevention of Corrupt Activities Act which prohibits "the abuse of a position of authority."

Canyon Springs is the company - of which Mr Godongwana was a part owner - that reportedly "lost" R100 million of textile workers' pensions. It is currently the subject of a liquidation inquiry.

It is emerging in the inquiry that the Deputy Minister used his political influence to get business from major government pension funds and the private sector for his company Canyon Springs Investments and its subsidiary Pan African Benefit Services (PABS).

E-mails from a former Canyon Springs employee, Graig Philander, indicate how Deputy Minister Godongwana used his influence to cajole government pension funds into doing business with Canyon Springs. This includes a list of potential business from 11 unions, pension funds and companies which Godongwana was to facilitate, including:

• The Government Employees Pension Fund (GEPF)
• Metal Industries Benefit Funds
•  Samancor
• Mercedes-Benz
• NUM
• Numsa 
• The Mineworkers Assembly.

One email included the following action minute: "Enoch to speak to Mr Tsje again and to find out what is happening at the GEPF and what Pan African Benefits could do."

Another noted that PABS had no contacts at Telkom and, after six months of discussions, had made progress with only one Post Office trustee. The action required was: "Enoch to speak to the Minister of Telecommunications, to find out where this process is."

I have already called for an investigation into why Mr Godongwana did not properly disclose his interest in Canyon Springs in the Register for Executive Members of Interests as he is required to do. Given the picture of influence-peddling that is emerging, it is now appropriate for the police to investigate Mr Godongwana's role in this scandal.

Statement issued by Kobus Marais MP, DA Shadow Minister of Economic Development, November 9 2011

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