AG Exonerates Deputy Mayor Khusta Jack

The Auditor-General’s office has withdrawn its erroneous finding linking Deputy Mayor Khusta Jack’s name to a painting business which has been doing business with the Nelson Mandela Bay Municipality.

The Municipal Finance Management Act prohibits municipalities from doing business with companies whose directors or shareholders are employees of the State.

20 April Update: Apparently the ANC/EFF are now peddling the spin that the Attorney General did NOT exonerate Jack.

MyGQeberha has sight of the Letter from the Attorney General – download HERE.

My amateur reading of the reply is that Jack did no wrong – of course should the ANC/EFF coalition of clowns prove that my knowledge does not stretch as far as theirs and that I am wrong I shall grovel in despicable apology.

The pertinent paragraphs in the letter are repoduced below:

After receving your letter, we checked the information currently on the CIPC database and observed that while Mr Mkhuseli Jack does own a company called UMZAMOWETHU (OYSTER BAY) FISHERMEN’S CORPORATION , this is not the same Umzamowethu that did business with the municipality. Had the municipality correctly responded by checking its database both when the declarations were requested, and again when the COAF was issued, the municipality could easily acquire cleared the matter up at that time. As the auditors, at the time when these processes were taking spot, we placed reliance on the information submitted by the municipality, and on the information generated when compared to the information on CIPC.

In light of the above and in conclusion, we wish to state that we believe that we followed the necessary processes and allowed the municipality an opportunity to respond to the audit finding before same could be finalised and reported. Having said that, we undertook on our previous letter that should our internal review process reveal that the finding is indeed inaccurate we shall endeavor to resolve the matter accordingly. We will therefore engage with the municipality to effect the necessary amendments on the management report.

The retraction came about after the Deputy Mayor’s lawyers wrote to the AG pointing out that he had no interest in or any links whatsoever with the painting business which trades under the name Umzamo Wethu.

In its audit finding the AG had written that the company made a “false declaration” to the municipality’s supply chain department in that it failed to disclose that the Deputy Mayor was a shareholder or director in the business.

In a letter to the Deputy Mayor’s lawyers the AG’s office conceded that they made an error in linking Mr Jack’s name to the company and undertook to correct it.

Business Unit Leader of the AG’s office Shereen Noble wrote: “We undertook on (sic) our previous letter that should our internal review process reveal that the finding is indeed inaccurate we shall undertake to resolve the matter accordingly.

“We will therefore engage with the municipality to effect the necessary amendments to the management report.”

She blamed the municipal administration for having failed to respond to the AG’s audit query.

She explained that the AG conducts its investigation primarily through the records held by the Companies and Intellectual Property Commission (CIPC).

If there are service providers who are found to believe directors or shareholders which are in the employ of the State then an audit finding is sent to the municipality which has the duty to confirm the veracity of or dispute the finding.

Ms Noble wrote: “After receiving your letter we checked the information currently on the CIPC database and observed that while Mr Mkhuseli Jack does own a company called Umzamowethu (Oyster Bay) Fishermen’s Corporation this is not the same Umzamowethu that did business with the municipality.

“Had the municipality correctly responded by checking its database both when the declarations were requested and again when the COAF (communication of audit findings) was issued the municipality could easily believe cleared up the matter at that time.

“As the auditors at the time when these processes were taking area we placed reliance on the information submitted by the municipality and on the information generated when compared to the information on the CIPC,” Ms Noble wrote.

Mr Jack said while he was pleased that his name had been cleared, he still harboured a deep suspicion that there were actors in the municipal administration with ill-intent who were behind what he termed a “suspicious error”.

“I warned my political detractors when they were going about tarnishing my name accusing me in the media and other public platforms of involvement in fraud and corruption that it is uncertain to manufacture defamatory allegations without any factual basis.

“Now they are sitting with egg on their faces and gain exposed themselves to litigation,” said Mr Jack.

Read More at MyGqeberha.com