UPDATE 1: DA councillor in court on charges of fraud and money laundering
The African National Congress caucus in the Western Cape has called for a Cape Town councillor to step down immediately after she was charged with fraud and money laundering in the Atlantis Magistrate’s Court.
CAPE TOWN, May 20 (ANA) – The African National Congress (ANC) caucus in the Western Cape has called for a Cape Town councillor to step down immediately after she was charged with fraud and money laundering in the Atlantis Magistrate’s Court.
Caucus spokesperson Fiona Abrahams said the party wants answers immediately on the matter.
Councillor Nora Grose, 64, from Table View, handed herself over to the Hawks’ Serious Corruption team at the Atlantis police station community centre prior to her court appearance.
“We want answers urgently on the matter, which we believe allegedly pertains to Covid-19 relief funds. We also want to know what steps have been taken to hold implicated parties to account. These relief funds were meant for the poor and we are aggrieved by these allegations,” Abrahams said.
The City of Cape Town has said that it is working with authorities to recover unspent grant funding.
In a statement, the city council said it will offer its full assistance to the Directorate for Priority Crime Investigation (Hawks) in the matter.
According to a statement released by Hawks spokesperson Zinzi Hani, Grose allegedly facilitated the Temporary Employee/Employer Relief Scheme (TERS) funding along with the chairperson of a non-governmental organisation (NGO) called the South African Religious Civic Organisation (SARCO).
Hani said the funds were allegedly used for personal gain.
She said it was further alleged that Grose colluded with Reuben Swartz, chairperson of the same NGO, to siphon relief funds from the City of Cape Town.
“The humanitarian funds valued at R170,000 (US$12,081) which were meant for the distribution of food parcels in Atlantis were reportedly funnelled to a church in Table View with links to some city officials,” Hani said.
Swartz was arrested in December 2020 on similar charges but was released on R10,000 (US$710) bail.
He is expected to appear again in the Bellville Specialised Commercial Crimes Court on May 21, 2021.
Grose was granted bail of R10,000 and is expected back in the Atlantis Magistrate’s Court on June 21, 2021.
Meanwhile, the city council said that over the past year it had allocated R39 million (US$2.7 million) to an emergency food relief programme, going above and beyond its municipal mandate to assist those struggling due to the global pandemic and the national lockdown.
Executive mayor Dan Plato said the City’s legal services department has been working with authorities for some time.
He said he was advised, based on the information available to the City, that this is not a criminal matter and that records show the funds went towards the intended purpose of food relief.
“All allegations regarding malpractice by a city councillor were investigated by the City of Cape Town’s Office of the Speaker and no malpractice was found.
“I have no doubt the authorities will continue to receive the full co-operation of our officials. We remain fully committed to ensuring all financial transactions are carried out to the letter of the law, and this is confirmed annually by the auditor general.
“I’ve further been advised by City officials that additional mechanisms will be put in place to ensure grant recipient organisations are fully aware of the manner in which funds may be used,” Plato said.
– African News Agency (ANA); Editing by Yaron Blecher
