Date: 21/01/2003
Source: Western Cape Provincial Government
Title: Van Schalkwyk: Statement on Roodefontein development


STATEMENT BY MARTHINUS VAN SCHALKWYK, PREMIER OF THE WESTERN CAPE, ON ROODEFONTEIN DEVELOPMENT, 21 January 2003

I became aware of the Roodefontein development and the possible controversy following media reports relating to the development. It was my initial impression that the controversy, which surrounded the development, was based on a usual conflict between competing and vested interests of role-players, as is the case with most such developments.

On two occasions, I enquired from Mr David Malatsi whether he had acted correctly and properly in dealing with the Roodefontein application and he gave me his firm assurance that he had. When Mr Malatsi was appointed Deputy Minster of Social Development in the National Government, I asked Mr Johan Gelderblom as the Acting Minister of Environmental Affairs and Development Planning to investigate this matter fully and report to me.

Mr Gelderblom kept me abreast of developments in the investigation. On 18 December 2002 Mr Gelderblom, after discussion with me, announced that the Western Cape Provincial Government would take the Roodefontein matter on review to the High Court. This action is based on issues of administrative justice and procedure.

On 11 December 2002 I received an anonymous fax, which contained certain disturbing allegations.

After one of Mr Gelderblom's reports to me, I contacted the Chief Secretary of the New National Party in the Western Cape, Mr Freddie Adams, and enquired from him whether the party had received any donations that could be considered to be out of the ordinary.

On Monday, 23 December 2002 I met with Mr Adams and he responded to my earlier queries. It became clear to me that there was reason for grave concern.

From the information I have gathered thus far the key issues would appear to be as follows:

* Mr Peter Marais, as the then Premier, and Mr Malatsi, as the then Minister of Environmental Affairs and Development Planning visited the site for the proposed development on 5 April 2002;
* According to a letter, dated 18 April 2002, from the developer's agent, addressed to Mr Malatsi, a further meeting took place on 17 April 2002 between the parties to discuss the development;
* Mr Marais, at the time also the Western Cape NNP Leader, instructed the Chief Secretary of the Western Cape NNP, Mr Freddie Adams, to send a letter, on 17 April 2002, to Count Ricardo Agusta requesting a donation to the NNP;
* The next day, 18 April 2002, an amount of R300 000 was electronically deposited into the account of the NNP Western Cape from Count Agusta's funds;
* On 19 April 2002 Mr Malatsi withdrew the delegated powers of the Director of Environmental Management, Ms Ingrid Coetzee, to issue written authorisations in respect of developmental and environmental matters;
* On 6 May 2002 the provincial Department of Environmental Affairs and Development Planning authorised, on certain conditions, the Roodefontein application to construct a golf and country estate in Plettenberg Bay;
* Subsequently the Wildlife and Environmental Society of Southern Africa ("WESSA') lodged an appeal, based on various environmental and procedural concerns, against the authorisation. The developer lodged a simultaneous appeal;
* On 24 October 2002 Mr Malatsi upheld the developer's appeal;
* On 4 November 2002 Mr Johan Gelderblom was appointed as Acting Minister of Environmental Affairs and Development Planning;
* On 5 November I requested him to fully investigate the Roodefontein matter.

On my instruction, Mr Gelderblom sought legal advice from Senior Counsel and obtained a legal opinion. The legal opinion concluded that the decision taken on appeal by former Minister Malatsi could be held to be reviewable on certain grounds relating to procedurally fair administrative action.

Although I would like to make it clear that nobody has been found guilty in relation to the above-mentioned sequence of events, it is, however, evident that a proper investigation is required.

In view thereof, I hereby announce as follows:

* To avoid the appearance of impropriety, I have instructed the Chief Secretary of the Western Cape NNP, Mr Freddie Adams, to send back the donation of R300 000 to Count Ricardo Agusta within 10 days;
* I have decided to refer the matter to the Public Protector for a full investigation. Both the Western Cape Provincial Government and the Western Cape NNP is committed to fully co-operate with such an investigation;
* Mr Malatsi will relinquish his duties as the Deputy Minister of Social Development with immediate effect.

Both Mr Marais and Mr Malatsi will be suspended from all party activities, including party caucuses, with immediate effect pending the conclusion of the Public Protector's investigation and any other party actions, which may arise there from.

From a personal point of view, it has been both difficult and disappointing for me to take this step, as I consider both Mr Marais and Mr Malatsi to be close friends and colleagues. We have been in many political battles together.

However, when I became Premier I swore to uphold both the National and Provincial Constitutions. My government and I are committed to clean and transparent governance, in which every citizen can trust.

Every citizen must know that his or her Constitutional rights are recognised and protected by our government. Every decision and every action taken by our government must be able to meet the standard set by the Constitution. Where any decision or conduct fails to meet this standard, we will take action.

Enquiries: Riaan Aucamp on 083 778 9923
Issued by Western Cape Provincial Government
21 January 2003