Gauteng MEC's R50m shares claim deemed false

Published Dec 5, 2006

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Gauteng MEC for Finance and Economic Affairs Paul Mashatile has been cleared on allegations that he failed to declare his R50-million interest in a software company.

The allegation surfaced in June this year when the Mail & Guardian reported that Mashatile had a R50-million stake in a top IT company. The matter was referred to the privileges and ethics committee (PEC) for investigation.

The committee on Monday found he did not have shares in Gadlex Holdings (Pty) Ltd.

The clearance followed an independent investigation by advocate Jules Browde, the integrity commissioner, who then submitted his findings to the PEC for further deliberation and consideration.

"It is also correct that Mashatile now insists that at no time did he actually own any shares in Gadlex. Upon inquiry by the integrity commissioner's office from the registrar of companies, it has been learnt that at no time in the existence of Gadlex Holdings (Pty) Ltd has MEC P Mashatile been shown as a shareholder, director or any other officer in the company," the report stated.

Gauteng Legislature Speaker Richard Mdakane was also cleared on allegations that he breached the code of conduct.

The committee found that Mdakane did not breach the code of conduct, as his involvement with Sesikhona Systems and Mudengu Resource Holdings was by virtue of his chairpersonship in Sanco (SA National Civic Organisation).

"He was then nominated to become the custodian of Sanco shares and has no personal interest."

Mdakane was, however, warned by the committee not to repeat an error he committed when he disclosed his interests in the subsidiary companies of Midway Two Holdings in the confidential section of the register, instead of the public section of the register.

The committee, however, found that it was evident from the findings of the integrity commissioner that there was no intention on the part of Mdakane not to disclose.

Gauteng MEC for Health Brian Hlongwa was also cleared on allegations of wrongdoing.

The allegations against him followed a concern raised by Democratic Alliance spokesperson on health Jack Bloom, who complained about Hlongwa's dedication to his job.

These concerns were raised after Hlongwa had listed "no fewer than 17 business interests" in his declaration of members' interests. It was found that Hlongwa did not contravene the members' code of conduct.

"His chairpersonship in Southern Electricity Company is an honorary position he holds and derived no remuneration for it whatsoever. Other companies that Hlongwa is linked to are dormant and no conflict of interest could be established during the investigation," said PEC chairperson Sophie Williams-De Bruyn.

Gauteng MEC for Education Angie Motshekga was found guilty and forced to apologise for failing to declare her interest in the companies owned by her husband and member of the Gauteng Legislature, Dr Mathole Motshekga.

"Dr Motshekga has several companies in which his family has financial interests, despite the fact that at the moment these companies are dormant.

"The committee is of the view that if the companies were to generate income for the Motshekga family, the MEC stood to benefit," said Williams-De Bruyn.

Motshekga stood up in the legislature and apologised reservedly before asking the committee to provide her with reasons why they had arrived at their conclusion.

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