Nearly two years after a high-profile corruption probe into allegations of “dodgy deals” by senior leaders of the Overstrand Municipality the Director of Public Prosecutions (DPP) has declined to prosecute. The directorate ruled there was insufficient evidence to prosecute implicated individuals following an extensive Hawks investigation.

The probe stemmed from allegations of fraudulent and corrupt conduct in tender awards against councillor Clinton Lerm. The tenders were for the De Mond Caravan and Fisherhaven Lagoon sites.

President of the Alliance for Change (ACC) Masizole Mnqasela approached the Directorate for Priority Crime Investigation, referred to as the Hawks, in August 2024 to probe the tenders.

He alleged in a press release on 14 August 2024 that Lerm had failed to disclose his business relationship with the business partners who were awarded a contract to lease a lucrative land parcel for profit. Hermanus Times previously reported on the matter.

At the time the Muncipal Manager Dr Dean O’Neill said there were also allegations of “improper involvement” of Lerm in the awarding of tenders. The allegations were made by the African National Congress and ACC as well as esteemed members of the public.

Addressing the matter then O’Neill said that the lease tender for the De Mond land had closed on 4 November 2023 before being awarded to Point Caravan Resort on 4 March 2024.

investigations into Mayor and MM

“Point Caravan Resort declared their business interest with Clinton Lerm in the declaration by supplier segment of the documentation […] Lerm declared his interest with Point Caravan Resort when he became councillor in November 2021,” said O’Neill.

The probe also called for investigations into Dr Annelie Rabie, who was Mayor at the time, and O’Neill. It alleged the processes of awarding the tender involved “dodgy deals” and criminal conduct.

A former senior manager of the municipality who had been part of the Bid Adjudication Committee (BAC) allegedly provided information that led to the claims against members of the municipality. The BAC member was initially identified as a whistleblower.

O’Neill said the municipality fully cooperated with the Hawks investigation from the get-go.

“From the onset the municipality coorperated fully and transparently with the Hawks’ investigation, providing all requested documentation and information, including declarations of interest of councillor Lerm,” said O’Neill in an official municipal statement on the matter. “Notwithstanding the investigation, the municipality has throughout maintained its firm position that the tender processes were conducted lawfully, ethically and in full compliance with applicable legislation.”

The nearly two-years-long investigation concluded with the DPP declining to prosecute after the extensive HAWKS investigation, citing the “lack of reasonable prospects for a sucessful investigation” as well as a lack of sufficient evidence.

“While the allegations caused significant reputational harm to the municipality the implicated councillors and the municipal manager all parties remain resolute in their confidence that the processes would withstand scrutiny,” O’Neill said.