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Hawks to charge Nelson Mandela Bay deputy mayor with cyber fraud linked to R551,000 legal fees

Hawks to charge Nelson Mandela Bay deputy mayor with cyber fraud linked to R551,000 legal fees
Estelle Ellis
By Estelle Ellis
14 Nov 2024
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Former Nelson Mandela Bay mayor, now deputy mayor, Gary van Niekerk has been summoned by the Hawks to appear in court on a charge of fraud on Friday. Van Niekerk stands accused of fraudulently obtaining legal representation using council funding after he was removed from his seat and was about to lose his job as speaker due to internal party squabbles.

The Hawks confirmed on Thursday, 14 November 2024, that Nelson Mandela Bay Deputy Mayor Gary van Niekerk has been summonsed to appear in court on a fraud charge.

Van Niekerk was elected to the council as a member of the Northern Alliance, but after internal party squabbles, he changed the party’s name to the National Alliance, claiming that he planned to contest the national election. He never did.

Warrant Officer Ndiphiwe Mhakuvana from the Hawks said Van Niekerk was due in court on Friday, 12 December. 

“The Hawks can confirm that the former mayor of Nelson Mandela Metropolitan Municipality, who is currently the deputy mayor, has been issued with a summons by the Hawks on 14 November 2024 facing allegations of cyber fraud and contravention of the Municipal Finance Management Act.”

He is the second former Nelson Mandela Bay mayor to clash with the law this week. SA soccer boss Danny Jordaan has also been brought before the courts.

Read more: State confident of securing convictions against Safa chief Danny Jordaan and co-accused

Fraud and funds allegations

In May 2022, Van Niekerk was the speaker of the highly unstable Nelson Mandela Bay council. At the time, current speaker Eugene Johnson was the mayor.

Suspended city manager Noxolo Nqwazi, who also has been criminally charged in unrelated matters and is currently on trial, had declared Van Niekerk’s seat vacant after she received a letter from his party, then known as the Northern Alliance, saying he was no longer a member.

This was later overturned by a court order, but Van Niekerk was accused of using a council letterhead to obtain the legal services of an attorney – even though he was no longer the speaker at the time.

He has admitted to writing the letter saying that he was acting “in defence of the office of the speaker”, but an internal investigation by councillors found that he only did so after his seat had already been declared vacant.

Read more: Nelson Mandela Bay mayor resigns amid plan to swap jobs with ANC deputy mayor

After the Gqeberha High Court overturned the decision to have his seat declared vacant, he returned as speaker, to then become mayor after a coalition shift in the council.

In an internal report, adopted by the council on Thursday, Van Niekerk was also found guilty of misrepresenting himself to the attorneys as a councillor and speaker of the council, even though his seat had been declared vacant.

It is alleged that Van Niekerk had received legal services worth R551,586, provided on the basis that the municipality would pay for it. The legal representatives chosen by Van Niekerk were not on the municipality’s panel of attorneys.

Internally, there were also allegations against Van Niekerk that he had sought legal opinions and had meddled in municipal administrative matters to such an extent that the municipality had denied liability for the costs he incurred.

The multiparty investigative committee investigating these allegations recommended to the Eastern Cape MEC for Cooperative Governance and Traditional Affairs, Zolile Williams, that Van Niekerk be suspended and also be held liable for the money spent when he obtained legal advice.

Read more: Landmark SCA ruling opens door for Nelson Mandela Bay to reclaim millions in wasteful expenditure from officials

Opposition calls for accountability


Lance Grootboom from the ACDP has filed criminal and internal charges against Van Niekerk. 

“We commend the Hawks for issuing a J175 [summons to appear in court] for Van Niekerk to appear in the Port Elizabeth Commercial Crimes Court on 12 December 2024. 

“The deputy mayor now faces four charges: two counts of fraud and two counts of contravening Section 173 of the Municipal Finance Management Act (MFMA). The allegations include his actions during a time when he was not a councillor or speaker of council, yet allegedly impersonated such positions to obtain unauthorised legal services for personal party matters. 

“The ACDP reaffirms its commitment to transparency and ethical governance and stresses the importance of accountability in public office. We will continue to support measures that uphold integrity in municipal admiration and await the judicial process with confidence,” Grootboom said.

Rano Kayser, DA leader in the Nelson Mandela Bay council, said his party was calling for swift and decisive action against Van Niekerk.

“These allegations highlight an abuse of power and disregard for ethical governance within the municipality. An ad hoc multiparty municipal committee recently concluded its investigation into these allegations.

“It determined that Van Niekerk violated the Code of Conduct for Councillors and breached provisions of the Municipal Finance Management Act. The committee recommended that he be either suspended or removed from his position as a councillor.

“We call on the Hawks to complete their investigation promptly and for the courts to act decisively. Should Van Niekerk be found guilty, accountability measures must be followed to restore integrity to his office.

“The people of the metro deserve better. Corruption is a scourge that is undermining our country. We will do everything in our power to rid Nelson Mandela Bay of corrupt and compromised politicians and get it back on track,” Kayser said.

Van Niekerk welcomes investigation


Van Niekerk said he welcomed the investigation by the Hawks.

“I instructed my attorneys to work with the investigating team as soon as I became aware that charges will be brought against me as I am looking forward to clear my name.

“A political narrative, emanating from political adversaries in Council, has been fuelled to tarnish my character as a senior political leader, representing a constituency marginalised from municipal opportunities and a seat at the table.

“I will be providing my full support to the National Prosecuting Authority and want to assure the public that this issue will not deter me from my duties as a public servant,” he said.

The ANC, the majority party in the coalition that kept Van Niekerk in place as mayor for more than a year, despite these allegations, and the EFF, which has been in the same coalition, along with several smaller parties, voted for the internal report sanctioning Van Niekerk to be adopted. DM

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