Witch-hunt after ELM financial records are revealed

But news – leaked by several multi-party political sources – of a second bank account possibly long-used to side-step increasing legal action and attachments, has sent shock waves through the business sector and political arena. A special ELM council meeting was also convened for Wednesday this week to discuss the ELM “Bankgate” crisis as well as another running crisis on the status of illegally-suspended Municipal Manager Lucky Leseane, now on voluntary leave.

The Golden Triangle Chamber of Commerce (GTCoC) has now demanded greater ELM financial and management transparency on especially municipal finances and the fight against corruption. Vaalweekblad over the weekend and this week exclusively published highly-secret detail and documentation on ELM bank accounts and balances after its primary account was attached and frozen on October 2 by BXCSA, which recently won a R492 million default judgement against ELM.

Vaalweekblad revealed BXCSA could have attached more than R133 million from ELM instead of a mere R47 million ELM left in the primary bank account. Additionally, Vaalweekblad revealed another R64 million owing to ELM from electricity vendor Ice Cloud has not been paid over to the municipality since 2018 for undisclosed reasons. ELM has not yet responded formally to publication of  the banking details.

The ELM CFO has now launched an internal investigation to intimidate employees and councillors from speaking out on ELM maladministration and corruption and also to find Vaalweekblad’s sources, said other sources.

“ELM should apply the Law on service delivery and municipal management first to itself instead of shooting the messenger  – ELM’s CFO and other senior leftovers from the previous utterly corrupt and incompetent administration must instead resolve gross maladministration on their watch. If ELM and its manipulated Council is serious about the law, they would immediately suspend CFO Andile Dyakala who is also responsible for ELM being in the legal mess with smart meter service provider BXCSA in the first place,” said Kritzinger.

“The Emfuleni paying community is entitled to far more transparency in ELM’s financial affairs – and it often seems that councillors who are voted in by ratepayers collaborate with ELM to hide crucial information from business and the community,” said Kritzinger. The second account revealed by Vaalweekblad has far more funds than the now frozen, supposedly primary ELM bank account. In the public interest and in the interests of greater transparency, Vaalweekblad is publishing ELM financial records on both known bank accounts.

ELM on Tuesday brought an urgent application to the Gauteng High Court to have the account restored to its control but the hearing was postponed until Thursday. ELM has indirectly indicated the existence of at least one other bank account by insisting in an internal communication last Friday by acting Municipal Manager Vincent Campbell that the embattled municipality would still be able to pay staff salaries month-end October. However, Campbell admitted ELM would have problems regarding payments to creditors.

The ELM bank account attachment follows a record R492 million default judgment in the Gauteng High Court recently in favour of BXCSA against ELM – an attachment order on what was believed to be ELM’s only bank account was carried out on October 2. And the municipality was still able to pay third parties despite its primary bank account being frozen.

As of 5 October, the “primary” ELM Standard Bank account had far less funds than the ABSA account –  R133 297 463 in ABSA as opposed to R57 284 343 in the official Standard Bank account, according to detailed financial records in Vaalweekblad’s possession.

ELM’s “two-or-more” bank account system is now seen as undermining and defeating the ends of justice so its officials and councillors can continue paying themselves despite any legal action attaching its known Standard Bank account and funds therein.

Thinking they have attached all ELM cash available as intended through legal action, creditors  will then see ELM funds in its known bank account either evaporate despite bank attachment orders or see ELM divert revenue to another account beyond their reach.

But ELM earlier this month paid third parties – Medical Aid, SARS and union deductions – from a “secondary” ABSA bank account around 6 or 7 October  after its Standard Bank account was already attached by its former smart meter service provider BXCSA on 2 October.

Balances were as follows:

ABSA Main: R133 297 463, ABSA Salary: R602 069, ABSA Traffic R86 857

Standard Bank Main (account frozen) R57 284 343, Standard Bank Salary: R1759 831, Standard Bank Traffic R3727 683.