Parliament to investigate who paid balance on minister’s luxury 4x4
Correctional services minister Ngconde Balfour received R798006.62 from an undisclosed source to settle 
the balance on his luxury 4x4 vehicle.
The Sunday Times today revealed that the amount was credited to Balfour’s vehicle account held by Kgwerano Asset Finance on October 25 2007.
This revelation comes as parliament intensifies its investigation into allegations that Balfour might have received his 4x4 Volkswagen Touareg 5.0 V10 as a gift that he did not declare in the Register of MPs’ interests.
The probe was triggered by a complaint lodged by former correctional services director-general Vernie Petersen, who told parliament that Balfour’s car could be a gift from a company linked to the Bosasa group of companies. Bosasa has multimillion-rand contracts to supply prisons.
Balfour’s submissions to parliament’s ethics committee on how he acquired his car raised more questions than answers.
The committee has asked the Registrar of MPs’ interests, Fazela Mohamed, to investigate Balfour’s assertions that he has been paying for the car since he acquired it in February 2006.
His two submissions — in August and October — did not convince the ethics committee that he is paying for the car.
The Sunday Times is in possession of a letter confirming that the amount owing on the car was settled, and account statements from Kgwerano Asset Finance confirm that the debt on the Touareg V10 was settled last October.
Balfour’s spokesman, Manelisi Wolela, did not answer a direct question on who was the source of the R798006.62, and whether it was a company that secured tenders with the department. He said: “The minister says earlier submissions to the committee covered all and he will comment after the committee has pronounced on the issue.”
Bosasa rejected allegations that it, or its employees, may have paid off the car on Balfour’s behalf. Bosasa spokesman Papa Leshabane said: “We did not pay a cent for that car. We have absolutely nothing to do with the money that was paid. We have got nothing to do with paying anybody’s car.”
Balfour’s submissions do not contain details of his personal account showing transfer of funds from his personal bank account, held by Standard Bank, to the vehicle account held by Kgwerano.
But he submitted a letter from Kgwerano that confirmed the vehicle account was settled.
This, however, is contradicted in the very same submission when he claims that he is still paying for the car.
The letter from Kgwerano states: “It is indeed a great pleasure to acknowledge the excellent manner in which you conducted your account, which has recently been settled.”
The letter, dated October 25 2007, advises Balfour to approach traffic authorities to register himself as a titleholder of the car within 21 days.
In his submission made on October 1, Balfour told the ethics committee that he did not get a discount for his Touareg. “In fact, I restructured my lease agreement with Wesbank in order to reduce my monthly instalments and help improve my personal cash flow,” he said.
However, documents in possession of the Sunday Times suggest that Balfour owns two 4x4 Touaregs.
The first is a Touareg 5.0 V10 TDI, which is under investigation. Bank records show that it is paid for.
The second is a Touareg R5 2.5 TDI — apparently acquired after the first had been paid up.
Balfour said Wesbank had pointed out in an affidavit delivered to the committee on November 2 that it did not finance two vehicles and that the reflection of two vehicles in the accounts is “merely a mistake”.
In his complaint to parliament, Petersen cited the Executive Members’ Ethics Act that prohibit ministers from “exposing themselves to any situation involving the risk for a conflict between their official responsibilities and their private interests”.
He also lodged a similar complaint to former public service and administration minister Geraldine Fraser-Moleketi.
Chairman of the ethics committee Luwellyn Landers yesterday declined to comment. “I am not able to answer any questions. We can only talk once the matter is finished. Right now we are still dealing with the matter.”
Balfour has been at loggerheads with Petersen after the latter refused to rubber-stamp the minister’s instruction to stop advertising a multimillion-rand tender to supply food in prisons pending a study on nutrition needs.
The study, according to Balfour’s instruction, was to be led by Balfour’s right-hand man, Patrick Gillingham.
Had Petersen agreed, the contract — held by Bosasa — would have been renewed for longer than six months, since it expired on July 31 this year. Petersen subsequently suspended Gillingham, who was fingered by the anti-corruption Special Investigations Unit for involvement in tender irregularities and fraud.
In his submission to the ethics committee, Balfour said Petersen’s complaint was motivated by malice. “The allegations made by (Petersen) are tainted by malice, which places doubt on his reliance on the Protected Disclosure Act...”
The Act prevents the victimisation of citizens who blow the whistle on corruption.
Balfour has since succeeded in elbowing Petersen out of his department. —
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