De Lille accused of trying to bury fraud report

Cape Town mayor Patricia de Lille has been accused of asking one of her top managers to bury a damning report on allegations of corruption involving millions of rand.

Craig Kesson, who is a director in De Lille's office, made the allegation in an affidavit handed to the council on Tuesday.

Kesson said he discovered that R43-million in revenue had been lost when he attended a presentation on a contract for MyCiTi bus stations to be put out to tender by the commissioner of the city's transport and urban development authority, Melissa Whitehead.

Kesson's affidavit said money had been "|misappropriated".

"I advised [Whitehead] that there was a possibility that this loss had been known to city officials for some time without putting in place suitable control mechanisms to stop the loss or attend to the condition causing the loss," Kesson said in his affidavit.

Kesson alleged that "ICT Works, the automated fare-collection contractor, reported in November 2015 that AEM Cashiers manipulated equipment, circumvented required processes and misappropriated cash which should have been received by the city".

Kesson said he tried to present a report on his findings to De Lille but she refused to accept it.

"[She] said that we needed to make the issue 'go away' and that the matter should not reach the council. This surprised me," said Kesson.

Kesson and De Lille have recently published a book, View from City Hall, which focuses on good governance.

His affidavit was submitted as divisions in the DA's leadership in the council, which have the potential to sink De Lille's political career, rage.

She is currently on special leave from political party activities after a public row between her and the member of the mayoral committee for safety and security,JP Smith, about allegations of irregularities in security upgrades at her house

The DA is now investigating the strained relationship between De Lille and Smith.

De Lille said in a statement she had not been given an opportunity to respond to the allegations.

"Once my lawyers have concluded my response to the content of the report, I will make it available by the end of the week," said De Lille.

Kesson also slammed Whitehead for her role in the multimillion-rand Foreshore Freeway Precinct tender.

According to Kesson, she stated at one meeting that a certain bid should be rejected because De Lille, transport and urban development mayoral committee member Brett Herron, and deputy mayor Ian Neilson would not accept it.

Kesson said further irregularities included a questionable payment of another R43-million for bus chassis.

"These payments were made for the bus chassis alone, notwithstanding the fact that the relevant contract provided for the purchase of complete buses," said the affidavit.

He quoted from another report that said the city had paid R29-million to another company for chassis when it ought to have paid for completed vehicles.

He said De Lille had believed there was conspiracy against her and Whitehead by people opposed to the spatial transformation of Cape Town.

Kesson said De Lille had told him that there was a plan to remove Whitehead, Herron and herself from office.

"In my respectful view, the mayor's conduct as described above is not compatible with her legal and ethical obligations.

"She has failed to ensure that due process is followed in respect to alleged misconduct and irregularities brought to her attention."

Kesson, Whitehead and city manager Achmat Ebrahim are facing suspension after the council resolved that allegations and counter-allegations of wrongdoing should be investigated.

Whitehead had not replied to a request for comment at the time of going to press.