DA demands suspension of Jhb MMC of Economic Development amid corruption allegations

Issued by Cllr Belinda Kayser-Echeozonjoku – DA Johannesburg Caucus Leader
04 Aug 2023 in Press Statements

Find a soundbite by DA Jhb Caucus Leader, Belinda Kayser-Echeozonjoku in English here, and in Afrikaans here.

The Democratic Alliance in the City of Johannesburg demands the suspension of the Johannesburg MMC of Economic Development, while an in-depth investigation is launched into the allegations of corruption against the Johannesburg Property Company (JPC) and the African National Congress (ANC). This follows reports that the current executive has adopted the practice of previous City governments who used the JPC to siphon funds to the ANC and its ancillary organisations.

The latest allegations are an audacious attempt to use the JPC to flip the bill at an ANC Youth League (ANCYL) event held at the Cedar Woods Hotel in Sandton. It is alleged that the ANC MMC for Economic Development, Cllr Nomoya Mnisi, instructed the JPC Acting Chief Financial Officer, Sipho Mzobe, to pay the invoice and when he refused, threatened him with removal from his post.

There are further allegations that the MMC also threatened Board members of the JPC with replacement if they did not approve her requests to remove Mzobe, or ensure that captured executives and board members be appointed. It is also alleged that she interfered with the process of appointing a permanent CFO of the JPC. Unsurprisingly, the MMC has denied these allegations.

These allegations, if proven to be true, are a flagrant violation of municipal laws and regulations, and of the councillors’ Code of Conduct. They give substance to the suspicion that the current coalition government has assumed office only for the purpose of milking the city to sustain the ANC and its governing partners’ activities.

Due to the severity of the allegations, the DA Caucus has written to the City Manager, as the accounting officer, requesting for an urgent forensic investigation into all activities and finances of JPC. We have also written to the Executive Mayor requesting for the immediate suspension of MMC Nomoya Mnisi, pending an investigation.

Should the Executive Mayor and the City Manager refuse to oblige, the DA will use any means at our disposal to see that justice is served.

In the letter to the City Manager, we also request that he looks at the Special Investigations Unit (SIU) findings and recommendations. It is high time that they are implemented to ensure governance at the JPC. We know the fight for department of Economic Development portfolio has everything to do with elections. The department has traditionally been used to ANC election campaigns.

The DA will never stand by and watch the ANC- PA-EFF coalition use Johannesburg residents’ money to pay for political conferences and election campaigns. We will fight against any form of malfeasance and corruption that happens in the City. There is no space for captured officials, and their wrongdoings in our city.