The flawed KPMG report could not find any evidence of COPE president Mr Patrick Lekota's allegations of R20m embezzlement. However, the manner in which the investigation was conducted is regrettable and unfortunate.
Whilst it was to be expected that Mr Lekota would use underhanded tactics and dubious methods to achieve his mission, KPMG's collusion has been more astonishing. At the outset, an unflattering preliminary report was issued at least a week before my interview by the investigators.
Interestingly, a draft report was released and extensively distributed despite outstanding interviews, without me, as in the norm, given a chance to comment on the findings and serious disclaimers from the investigators notwithstanding. Among the KPMG disclaimers are:
- We have not been able to conduct any consultations with Mashiane and Gamede with regard to our findings. Numerous attempts have been made to consult with Gamede, without success. We also submitted two written requests to meet with Mashiane on 19 October and 27 October 2010; (Mashiane had asked KPMG to deal with certain concerns before she could be interviewed. She still awaits the company's response.)
- We submitted a request to meet with Shilowa on 6 September 2010 although we only consulted with him on 11 October 2010. This delay affected the finalisation of our investigation;
- We have not obtained the underlying financial records that were used to compile the annual financial statements presented to Parliament;
- We are awaiting information from a number of suppliers to COPE regarding payments made to them. These suppliers include Uniglobe;
- We are awaiting information from COPE the Political party regarding payments made by them;
- We are awaiting information from Parliament regarding information submitted to them by COPE and information in their possession
- FNB could not provide us with electronic banking records in the format that we requested;
- We have not received a complete set of bank statements from Standard Bank for the period under review.
The company also imposed restrictions but were ignored, "the report was prepared solely for the purposes of reporting our findings to you. This report should therefore not be utilised for any other purpose. No part may be quoted, referred to or disclosed in whole or in part, by any party, without our prior consent."
Furthermore, the packaging of the report demonstrated beyond any doubt that a particular outcome had been dictated to the investigators. For example, when there are two competing versions, the investigators would accept Mr Lekota's people account without a third party's credible verification or independent corroboration.
For instance, when Dennis Bloem struggles to account for his signature, he would claim it was forged. However, his version would stand without a forensic writing expert's verification. When it is claimed certain decision were of the party structures, members of that structure or the minutes of that meeting are not consulted.
The report has been referred to my legal representatives for counsel on possible defamation action and on how to deal with KPMG's unethical conduct.
They way this investigation has been mishandled confirms the view that this was a witch-hunt aimed at victimisation of those who oppose Mr Lekota's election as an inaugural elected president of the party. We will not be deterred and will do all we can after we allowed another postponement which we thought was in the best interest of the party and its future.
Unity remains paramount and in the same way we were ready for a congress this weekend - we now say, loud and clear: Woza December. Nothing will stop us now even this veiled attempt at the elimination of opponents.
Statement issued by Mbhazima Shilowa, COPE deputy president, November 4 2010
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