Premier Oscar Mabuyane and MEC Babalo Madikizela in public funds scandal
The Public Protector, Busisiwe Mkhwebane, has released a damning report implicating Eastern Cape Premier Oscar Mabuyane and MEC for public works, Babalo Madikizela of mal-administration of public funds. This is in relation to R1.1 million which was meant for a memorial service for the late Winnie Madikizela Mandela. Mkhwebane found that the money which was meant for the memorial service of Winnie Madikizela-Mandela was irregularly deposited into Mthombeni Project LTD and misappropriated to improperly benefit Mabuyane and other provincial office leaders.
Mkhwebane says Premier Mabuyane benefitted R450 000 from the R1.1 million that was meant for Madikizela-Mandela’s memorial service. The money had been deposited into a company bank account belonging to his wife.
Meanwhile, Madikizela improperly benefitted and received at least R350 000.
Public Protector further found that the ANC in the Eastern Cape benefitted as well, with R280 000 of the money going into the party’s funding account.
The investigation followed a complaint lodged on July 1, 2019 by a BCM resident Xolile Mashukuca.
In preparation for the memorial service, the provincial Department of Sport, Recreation, Arts and Culture and the municipality entered into a Memorandum of Agreement with a view to collaborate and coordinate efforts geared at the successful hosting of the event.
The department and MLM resolved to work together as partners to host the service with the agreement that the department will provide the municipality with the amount of R1.1million to transport the public to the service.
According to Mkhwebane, the funds were misappropriated by the department and the MLM, with the assistance of businessman Lonwabo Bam.
Bam had since signed sworn affidavits where he detailed how the money was channelled from the source to accounts that were carrying out renovation works to Mabuyane’s private house, while R350 000 went to a company owned by Madikizela.
When The Informer asked for Madikizela’s comment, he said he has not seen the Public Protector’s report as yet, while Sonwabo Mbananga of the Premier’s Office said they are still preparing a statement regarding the matter.
Mkhwebane says the matter has been reported to the Hawks and is under investigation.
