E+Cape+ruling+exposes+political+ploy




 * M & G, Johannesburg, 23 September 2005 10:59**

=**E Cape ruling exposes political ploy**=
 * Vicki Robinson**

Judgement in the high-profile fraud trial clearing three former executives at the Eastern Cape Development Corporation (ECDC) has strengthened pervasive perceptions in the province that Premier Nosimo Balindlela’s government is using state machinery to purge individuals loyal to former premier Makhenkesi Stofile and provincial African National Congress deputy chairperson Enoch Godongwana.

Last Tuesday, former CEO of the ECDC Mcebisi Jonas, property development director Don McClean and finance director John Cerff were found not guilty of fraud relating to the sale of the three-star Mpekweni Resort near Port Alfred in April last year.

The province had accused them of misrepresenting details in the sale of the resort to a consortium called Silver Charm Investments for R9,2-million when other bidders were allegedly set to pay more.

“It is only right and fitting to pronounce that there is not a shred of evidence even remotely implicating the accused in the commission of this offence,” said Judge Dayalin Chetty in his 99-page judgement in the East London High Court on Tuesday.

He strongly criticised the state’s evidence, based on a 120-page forensic report, for demonstrating “a complete lack of objectivity. The entire edifice of the state case was based on a forensic report which is severely wanting,” said Chetty. “Why and for what reason it was obtained I need not speculate on. Suffice it to say that it was ill considered. The result of this is that the three accused were hauled before a court of law where their integrity was denigrated and their honesty was sought to be impugned.”

The provincial government’s efforts to remove Jonas, Cerff and McClean from the ECDC began in September last year when provincial minister for economic affairs, environment and tourism André de Wet, a Balindlela appointee, suspended and later fired the three men without reason.

The actions against them are perceived as an attempt by the Balindlela camp to purge the ECDC, other para-statal bodies and the provincial government of individuals loyal to Stofile and De Wet’s predecessor, Godongwana, who was also sacked without substantive reasons last year.

Xola Pakati, Congress of South African Trade Unions provincial secretary, told the Mail & Guardian: “We have continuously expressed concern about the abuse of state power by Balindlela and her surrogates to criminalise innocent people to settle political scores. We have been vindicated by Chetty’s conclusion.”

The spokesperson for the African National Congress in the Eastern Cape, Manlubandile Qwasa, said: “We want to reiterate that in pursuit of our organisational and government duties we should not use the organs of the state to settle scores against each other.”

The judge lambasted De Wet, who initiated the investigation against the three men, for engaging in a “fishing expedition”.

De Wet had flouted procedural regulations when he ordered the men’s arrest earlier this year before any investigation against them.

Jonas, Cerff and McClean were acquitted without testimony being led by the defence. The judge rebuked the state witnesses for their dishonesty and “garbled response[s]”.

The judge found that Peet Pieterse, the auditor responsible for the forensic report, had based his investigation on an “erroneous interpretation of the applicable legislation” and inaccurate minutes taken at ECDC board and executive management meetings. These inaccuracies included an amount of “R13 000” being recorded instead of “R13-million”, the word “Finbank” instead of “Bankfin”, and India being confused with China.

Chetty told former ECDC minute-taker Ntombi Kakaze, who took the witness stand to defend her minutes, that she was “unimpressive”. He also called the evidence of former ECDC board member Nominise Gogo “really worthless”.

Balindlela’s spokesperson, Phila Ngqumba, said: “We should respect the judgement.”

De Wet was abroad this week and unavailable for comment.

Jonas, Cerff and McClean are considering filing a civil case.


 * From: http://www.mg.co.za/articlePage.aspx?articleid=251768&area=/insight/insight__national/**