Defence shifts blame in 'ghost' youth festival trial

THE DEFENCE has attempted to shift the blame for the Umsobomvu “ghost” youth festival onto the then acting CEO of the Northern Cape Arts and Culture Council (NCACC), Phillip Speek.

Traffic Events and Entertainment CC was awarded a R1.6 million tender by the Northern Cape Department of Sport, Arts and Culture (DSAC) to organise the youth event in Colesberg on December 31, 2016, although the festival never took place.

The former acting head of the department, Ruth Palm, the chief financial officer, Andrian Coleridge, the chief director of corporate services, Bonakele Jacobs, and the director of Traffic Events and Entertainment CC, Lesego Stephens Mphake, are facing several charges including contravening the Public Finance Management Act (PFMA), fraud, money laundering and contravening the Prevention of Organised Crime Act.

Mphake’s legal representative, advocate Ferdi van Heerden, argued that Speek had taken leave and failed to take the necessary steps to ensure the festival went ahead.

The legal representative for Coleridge and Jacobs, Johan Harmse, argued that the NCACC was a separate private entity from the department. He pointed out that Speek was the one who had “pressed the button” to process the R1 million payment to Traffic Events and Entertainment.

He maintained that the NCACC should be held responsible for any improper conduct, as the memorandum of agreement was signed between Traffic Events and Entertainment CC and the NCACC, and not the DSAC.

Harmse added that the department had turned down a proposal to allocate R600,000 to host the Umsobomvu festival as it was “not enough”.

Palm’s legal representative, Riaan Bode, indicated that not all board members were in favour of hosting the event. He questioned why the payment was hurriedly processed on Christmas Eve, which fell on a Saturday.

NCACC CEO ‘acted on instructions’

Speek testified that the NCACC did not appoint any service provider and that he acted on the instructions of the MEC for Sport, Arts and Culture and the chairperson of the board.

He explained that DSAC officials were deployed to the NCACC, which served as the implementing agent.

Speek said he had made the electronic payment to the service provider from his tablet on December 24, 2016, as he was on leave at the time.

“The chief financial officer authorised the payment. It was the first time I transferred such a large sum of money. The payment was made on behalf of the department, with the understanding that the NCACC would be reimbursed.”

He added that he received the go-ahead from the chairperson of the board to process the R1.6 million payment on December 24, 2016.

“The payment reflected in the bank account of the service provider on December 28, 2016, as it was a large sum of money.” 

Magistrate Vernon Smith postponed the matter until December 8.