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AG Exonerates Deputy Mayor Khusta Jack

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The Auditor-General’s office has withdrawn its erroneous finding linking Deputy Mayor Khusta Jack’s name to a painting business which has been doing business with the Nelson Mandela Bay Municipality.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

Mkhuseli Jack
Deputy Mayor Mkhuseli Jack – AIM

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 endeavour 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 have 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 have cleared up the matter at that time.

“As the auditors at the time when these processes were taking place 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 dangerous to make defamatory allegations without any factual basis.

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

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Alan Straton

Chief Cook, Bottle Washer and Broom Mechanic at MyPE
Passionate about Port Elizabeth and definitely NOT packing for Perth. Alan's ethos is epitomised in the words of Nelson Mandela; "I have fought against white domination and I have fought against black domination. I have cherished the idea of a democratic and free society. If need be, it is an ideal for which I am prepared to die." See more articles by Alan.