Business Day (Johannesburg)

South Africa: DA Says Cachalia Must Probe U.S.$3 Million CNBC Africa Deal

Johannesburg — THE Democratic Alliance (DA) has called for a forensic investigation into the annual deal with CNBC Africa and a declaration of the penalties incurred by the Gauteng taxpayer for cancelling the contract three years early.

Gauteng DA spokesman for economic affairs Gavin Lewis yesterday asked who benefited from a deal that did not appear to be in the interest of the Gauteng taxpayer, calling for the present Gauteng economic development MEC, Firoz Cachalia, to stop avoiding the issue and respond to questions raised about the deal or institute a probe.

Lewis, who intends to raise the CNBC Africa matter with the auditor-general, said the deal was "so one-sided against citizens of Gauteng that it must raise suspicions as to why it was agreed to in the first place".

"Cachalia must do his duty and go beyond the purely procedural if accountable government is to have any meaning," he said.

The deal, signed when Paul Mashatile was MEC, with the Gauteng Film Commission allegedly undertook to pay the channel 3m a year if CNBC Africa was unable to attract sufficient advertising.

In return, CNBC Africa allegedly had to set up offices in Johannesburg. At the time Cachalia was MEC of safety and security in the province.

Vernon Matzopoulos, MD of business TV channel Summit, is also asking who in the Gauteng government benefited.

In a letter sent at the weekend to Cachalia, Matzopoulos asks for details of the legal opinion indicating that the deal with CNBC Africa contravened the Public Finance Management Act and details of the contract with the channel, including what guarantees were given to CNBC Africa and what the Gauteng government received in return.

The letter also demands disciplinary action be taken against individuals employed by the Gauteng government who are guilty of contravening the Public Finance Management Act and an investigation be conducted to determine whether any employees benefited from the deal.

Lewis said: "Who benefited is the question that begs to be asked, and until actions are taken against potentially corrupt individuals and their ill-gotten gains are returned to taxpayers, corruption will continue to drain Gauteng and SA, and the prospects for a better life for all."

Cachalia's spokesman, Mandla Radebe, said yesterday that he had not yet received the letter from Matzopoulos so he was unable to comment.

"I would like to remind the public that the contract was terminated after advice by the auditor-general, who questioned the deal. This was then confirmed by legal opinion," Radebe said.


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