DA claims public millions secretly diverted for individual benefit

The DA claims ANC councillors held a secret Blocksum Allocation meeting at City Hall on 14 August 2013 where they unilaterally decided to divert public funds for the benefit of individuals.

Blocksum Allocations are lump sums of money that are allocated to various wards, usually for capital expenditure projects. These funds are allocated to projects in the ward by the ward councillor, usually in consultation with the ward committee. In this instance it was an allocation of R1 million per ward.

This involves 17 DA ward councillors and ward councillors from all other opposition parties. The amount of money, which the DA claimed was illegally diverted by the ANC is in excess of R25 million.

The DA claims ANC councillors excluded all opposition parties from this meeting where they unilaterally took decisions to use Blocksum Allocation to renovate an ANC councillor’s office, upgrade a privately owned hall and build steps in an informal settlement situated on private land.

DA ward 10 councillor  Rick Crouch said he was purposefully excluded from this meeting despite his ward being on the agenda.

He said he would not have allowed ANC councillors to redirect public funds for his ward in the manner that they did, had he been present at this meeting.

Crouch said he first became aware of the secret meetings when he was sent an SMS indicating that a meeting would take place at the City Hall on Wednesday,14 August 2013.

This was followed by another reminder of the meeting.

Both SMS messages bore the name of ANC councillor and chief whip, Stanley Xulu.

Crouch said he later received a telephone call from Xulu’s office telling him to “disregard” the messages and that there was no such meeting.

Crouch later discovered that the meeting did take place during which discussions were had on how to spend money allocated to various projects in his ward.

“Among these allocations are items which amount to irregular expenditure as it allocates council money for work on and in private properties, also there is an allocation for an upgrade to an ANC councillor’s office.

“Due to the underhanded, secretive way this was handled I am not open to any compromise on any allocations. I am not in agreement with the allocations for Ward 10 and reject all of them outright,” Crouch said.

Although Crouch has sent numerous emails to both the speaker and the mayor on this issue, he said he is yet to receive a response from speaker Logie Naidoo and Mayor James Nxumalo.

“The residents of ward 10 have a right to know what happened to the R1 million that was allocated to their ward, (but) the speaker is denying all knowledge and hoping that the issue will simply go away. Well, when I get a hold of something it does not simply go away. It has been 5 months now and we have still not received any answers.

“What is also disturbing is that the money has been allocated by the ANC to footpaths in an informal settlement on private property. Although it is a good idea, it is illegal and irregular expenditure and they have put my name to it, so although I was not there and they made the allocation I will be responsible when the Auditor General questions the irregular expenditure,” said Crouch.

Immediate comment from the ANC has not been available.