Morkel's fate hangs in the balance

Published Jun 30, 2005

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The fate of Democratic Alliance Western Cape chairperson Kent Morkel, who allegedly accepted R10 000 in bribes from micro-finance company Gilt Edged Management Services (Gems), rests on the outcome of the trial of union officials and two former Gems CEOs.

Other than confirming the investigation against Morkel had been completed, Scorpions prosecutor Ian Cameron would not comment further.

Thirty-three South African Municipal Workers Union (Samwu) officials and two CEOs face charges of corruption in the Cape Town magistrate's court.

They will appear in court again on July 13 when the case is expected to be transferred to the Cape Town regional court.

The arrest of the Samwu officials and former CEOs follows the conclusion of a multi-million rand corruption case plea bargain in the Cape High Court in November between Gems and the state.

Gems is a subsidiary of African Bank Investments Ltd (Abil) and provided loans predominantly to municipal employees across the country.

Usually municipalities only allowed access to their payroll systems to one micro finance provider per union.

As a result Samwu appointed another company as its provider, which was significantly cheaper than Gems.

It is alleged that Gems then approached Morkel to use his power and influence to promote the services of the company through his co-councillors and politicians, to secure stop orders in favour of the company from municipal employees' salaries, in return for R10 000.

He had to ensure the continuation of the stop-order facilities.

The 33 Samwu officials are also accused of accepting bribes, including cellphones, airtime, entertainment and the use of cars, to secure such stop orders across the country and ensure they were not cancelled.

As part of a plea bargain, Gems agreed to pay a R5-million fine.

A month before the plea bargain was reached, Morkel - son of former Western Cape premier Gerald Morkel - was elected DA Western Cape chairperson. He also heads the party's 70-member caucus in the City of Cape Town.

Morkel was among the five members of a DA committee who appointed Erik Marais as the party's temporary provincial director. Two years ago, Marais pleaded guilty to foreign exchange law contraventions during the Harksen scandal. He was fired from Absa Bank.

African National Congress chairperson in the city council Saleem Mowzer on Wednesday responded to the Scorpions' decision.

"We welcome that the Scorpions and National Prosecuting Authority are dealing with the case involving Councillor Kent Morkel and the others accused, in a manner that allows the rule of law to take its course," said Mowzer.

"The ANC in the City of Cape Town respects this course of action and will continue to monitor the case closely as it unfolds."

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