CAPE TOWN - The Directorate for Priority Crime Investigation (Hawks) Serious Commercial Crime Unit in George is investigating a complaint of alleged fraud and wasteful expenditure within the Greater Oudtshoorn Municipality over the appointment of the law firm Webber Wentzel as a service provider.
A complaint was lodged with the Hawks by the municipality’s former municipal manager, Allen Paulse.
Webber Wentzel was appointed by the municipality at the start of 2020 to investigate, among others, complaints against Paulse after he was put on special leave on January 28 by council following allegations of misconduct.
A separate complaint was lodged with the National Prosecuting Authority (NPA) last year by the municipality’s former mayor Colan Sylvester against Paulse, for Offences relating to “irregular expenditure, financial misconduct and gross violation of the municipal Financial Management Act”.
Paulse had later resigned but did not face further action after the NPA confirmed that charges were withdrawn as “there were no prospects for a successful prosecution”.
According to his affidavit, Paulse alleged the municipality suffered substantial financial loss over the appointment because of the non-compliance to the Supply Chain Management regime.
“It is important to state that various competent, duly registered and compliant legal services are available in the Oudtshoorn municipal jurisdiction and the adjoining town of George, who would have been equal to task to conduct an impartial investigation.”
“My submission is that the appointment of Webber Wentzel also resulted in unnecessary and thus fruitless expenditure, with costs incurred for flights, car hire and accommodation, which would not have been incurred if an Oudtshoorn or George based legal company had been appointed,” he cited in the affidavit.
Hawks spokesperson Zinzi Hani, confirmed they were investigating.
The municipality’s acting municipal manager, Walter Hendriks said his office was currently working with the Hawks.
“The Municipality is aware and my office is currently working with the Hawks. An item was tabled before Council on Thursday. The Executive Mayor, Vlancio Donson of ICOSA and Council in the absence of the DA councillors who all tendered their apologies, approved the item for an internal investigation as well. The Mayor wants all corrupt activities to be investigated at the Municipality,” Hendriks said.
The Provincial Department Local Government said it was aware of the investigation and the head of the department will be discussing the matter with the MEC, and more information will be divulged at a later stage.
Paula Youens of Webber Wentzel said the law firm was approached by the municipality in 2020 for legal assistance.
Their scope of work involved four different investigations into various municipal-related matters spanning several years.
“Following our investigation, we produced five different reports for the municipality. The reports included several recommendations for the municipality to consider and implement.
We confirm that we are not aware of any Hawks investigation into Webber Wentzel's appointment but we are aware of a Hawks investigation emanating from the findings and recommendations in our reports. We also note that the work that was completed, was done ethically and independently and that there was no improper conduct on behalf of the firm or any of our advisors that we are aware of,” said Youens.
Cape Times