Memo to Mr S Gqobana (MEC for Local Government & Traditional Affairs, Eastern Cape) regarding "Investigation into suspected financial irregularities at OR Tambo District Municipality" from Bantu Holomisa, MP - UDM President (29 July 2009)

Dear Sir

It has come to the UDM’s attention that during the 2008/09 financial year an amount of R1.03 million was set aside for “Whippery Support” in OR Tambo District Municipality. Between July 2008 and June 2009 close to R900 000 of this amount had been spent the ANC councillors.

Now all of a sudden the UDM councillors in the municipality have been informed of the existence of this “Whippery Support” fund and have been invited by the OR Tambo council to use R70 000 of the remaining R135 000.

The UDM councillors inform me that there was never any council resolution on how to utilise these funds for so-called “whippery” activities, nor are there any rules/regulations that the council can produce on how such a whippery fund would be operated.

I call on you to launch an investigation to determine to whom and why these funds were transferred.

What criteria were used to decide that the UDM was entitled to R70 000, and why only now? If this money was indeed meant for whippery can the administration and the ANC in the council show what regulations/rules were followed in the allocation and use of these funds?

We need an independent investigation to determine to which account/s and person/s transfers were made and the recipients must prove that this expenditure was to the benefit of the council and its ratepayers.

Kind regards

Bantu Holomisa, MP

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