Pravine Naidoo has been dismissed as Makana Municipality's Municipal Manager with immediate effect. After a disciplinary process that began on 18 February, presiding officer advocate Paul Van Rooyen on 27 February handed down his finding that Naidoo is guilty of misconduct in terms of the Municipal Systems Act.
Pravine Naidoo has been dismissed as Makana Municipality's Municipal Manager with immediate effect. After a disciplinary process that began on 18 February, presiding officer advocate Paul Van Rooyen on 27 February handed down his finding that Naidoo is guilty of misconduct in terms of the Municipal Systems Act.
According to Van Rooyen, Naidoo contravened the Code of Conduct for Municipal Staff Members.
In documents that appear to lay bare a trail of deceit, Council's attorneys Chris Baker and Associates are unequivocal in their condemnation of Naidoo's actions. The documents and others relating to Naidoo's hearings were tabled in a confidential session of an ordinary Council meeting on Wednesday 12 March.
They describe how Naidoo effectively drew up a contract with himself and created a false paper trail to fraudulently ensure a financial settlement favourable to himself.
“The employee's conduct entailed rather significant dishonesty," stated the document.
In their representation on sanction on behalf of Makana Municipality, the attorneys say Naidoo, "…demonstrated that he cannot be trusted to carry out his responsibilities as accounting officer… "…It need hardly be said that it is untenable to have a dishonest and fraudulent accounting officer."
The documents also stated that Naidoo could have benefited by more than R3 million had his actions not been discovered.
Documents in the possession of Grocott's Mail indicate that Council Speaker Rachel Madinda-Isaac signed an agreement last year to pay more than R100 000 in legal costs, on top of a R3 million deal with Naidoo.
The agreement lodged with the labour court, now found by Van Rooyen to be fraudulent, follows Naidoo's dispute with Makana Municipality after he left office as municipal manager in 2007. The R3m was a compromise after his initial demand for a R5m settlement in respect of alleged damages.
Van Rooyen said he was satisfied that Naidoo was guilty of all the charges against him.
"The evidence discloses that the employee obtained, in his favour, a very substantial settlement by dishonest means and in direct contravention of a resolution of the council of the employer. He then attempted to hide his tracks by creating a false paper trail," he said in his finding.
Naidoo's request for a postponement in the proceedings due to his legal counsel being unavailable was refused.
In a twist, Naidoo's earlier declaration that he was a registered attorney and was highly qualified in municipal matters was used to support the processes going ahead.
Van Rooyen said Naidoo had threatened, through his attorney, to take the refusal to grant him a postponement on review.
Naidoo was placed on a three months precautionary suspension last year.
Among other charges, Naidoo was found guilty of a charge of attempting to influence the Council and/or the functioning of the Council with a view to obtaining a personal advantage or benefit, and misleading or attempting to mislead the Council regarding its consideration of a settlement of his long-runnning labour dispute.
Van Rooyen explained that Naidoo had been charged and found guilty not in terms of Section 61 of the Local Government: Municipal finance Management Act, but on fact.
DA caucus leader Les Reynolds, commenting on the former municipal manager's dismissal, said he had warned council about Naidoo's appointment.
“It is the right way to go, it is absolutely right because he had no regard for this council, the ratepayers and the staff… he was only looking out for himself,” said Reynolds.
Naidoo's long and troubled association with Makana Municipality
2007: Towards the end of his five year contract as Makana Municipal Manager, Pravine Naidoo is involved in a legal dispute primarily with the Makana mayor. The post is re-advertised, but Naidoo is not appointed because of the dispute and sues the municipality. He demands to be reinstated or that the municipality pay him over R5 million, the equivalent of the MM’s total remuneration package calculated over five years. He later loses the labour court case, but appeals the decision.
2012: Naidoo’s successor Ntombi Baart is fired.
January 2013: Rumours abound that Naidoo might return to Makana to re-claim his job.
April 2013: Naidoo leaves the Drakenstein District Municipality in the Western Cape and is appointed as Municipal Manager for a second time, despite the fact that his legal dispute with Makana Municipality has not yet been resolved.
May 2013: Naidoo outlines a 50-point strategy to get the City Hall administration back on its feet.
August 2013: The Council's remuneration committee recommends that a yearly package of R1.5 million be considered for Naidoo. He is the only municipal manager paid that much in the district – even more than the municipal manager of Cacadu district municipality, who earns R1.2m a year. Held up as an incentive to do so was a letter offering him a post in Ekurhuleni Municipality for that exact remuneration.
September 2013: Almost six months into the job, Naidoo has still not signed his five-year contract. Discussed during a confidential session of the Council, the matter was again deferred.
October 2013: Makana Municipality struggles to quell rumours of bankruptcy and the threat of going under administration.
November 2013: Documents show that Council Speaker Rachel Madinda-Isaac agreed to pay more than R100 000 in legal costs, on top of a R3 million out-of-court settlement with Naidoo. Strategic Manager Mncedisi Boma and labour relations officer Xolani Mbeleni appear as co-signatories to the document dated 24 July 2013. Boma appears as the signatory to a letter dated 2 October 2013 instructing acting chief financial officer Marius Crouse to implement a labour court order and pay Naidoo R108 374.79.
22 Nov 2013: Naidoo is placed on precautionary leave for seven days to prevent him from interfering in the investigations into his settlement case.
29 November 2013: Makana Municipality reinstates Naidoo after his lawyers disputed technicalities of the process by which he was placed on precautionary leave.
December 2013: Ongoing water cuts in the town.
13 December 2013: Naidoo is barred from his office in City Hall and Council order a three-month precautionary suspension.Naidoo is under fire for allegedly influencing the settlement agreement of the R3m tax-free payment.
17 Jan 2014: Makana strategic manager Mncedisi Boma is suspended after being charged with stealing a file containing crucial information regarding Naidoo.
31 Jan 2014: The Grahamstown High Court throws out Naidoo's R3 million settlement and confirms his suspension.
