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GMI attorneys released the long-awaited report into the activities of the Gauteng Partnership Fund (GPF) after questions were raised regarding its loan to Nonkwelo Investments, which is owned by Deputy President Paul Mashatile’s son-in-law.

It is apparent from a cursory glance over the extensive report that more questions arise from issues raised in the document and its conclusion.

What is apparent is that the directors of the fund appear to have acted recklessly, and the important evidentiary documentation is missing, which has hindered the investigation team from doing a proper and effective investigation.

The report also concluded that there was no legal basis for the fund to restructure the project from affordable housing to a student loan project.

The report further finds that three loans were disbursed in the amount of R7246 million. The report states that there may be negligence on the part of the developer and the GPF in that a proper site investigation and due diligence may not have been undertaken before the approval of the various funding.

GPF was found to have not utilised the legal remedies at its disposal to obtain a more effective result and recover the developer monies owed to it.

The Democratic Alliance (DA) is appalled by the GPF’s lack of professionalism, failure to follow its own processes, and a lack of transparency in its business dealings, particularly in its role as facilitator and funder of Mega Projects in Gauteng.

This report is merely the tip of the iceberg. There is a need for a significant and extensive investigation to be conducted into the activities and business of the GPF.

We call on the Gauteng Premier, Panyaza Lesufi, to instruct a forensic team to fully investigate all activities of the GPF from 2012 to date.

It may also be necessary to instruct the Public Protector to investigate the activities of the GPF.

The DA will table written questions in the Gauteng Provincial Legislature and raise the issue with the Human Settlements Committee to determine the nature of the GPF business dealings and expose any unlawful or irregular practices.

Issued by Mervyn Cirota MPL - DA Gauteng Shadow MEC for Human Settlements