Niehaus spins out of control

Within days of a damning exposé in the Mail & Guardian on Friday, Niehaus went from struggle hero to zero, losing his credibility, his high-profile job and even his rented home. Niehaus resigned from his ANC job on Tuesday, according to a report on the IoL site. He, however, remained an ANC member, the report notes. Niehaus' resignation came after the ruling party placed him on a 'leave of absence'. The ANC initially indicated that it would give him another role within the organisation. However, the party opted to place him on leave after realising he had 'withheld' information about his financial dealings, spokesperson Lindiwe Zulu said. His troubles started when a tearful Niehaus admitted to the Mail & Guardian that he: forged signatures while he was CE of the Gauteng Economic Development Agency (Geda) before resigning in December 2005; borrowed money over a six-year period from some of the brightest stars of the ANC and business galaxy, much of which he has not paid back; asked to be connected to Brett Kebble because he was 'desperate for financial help'; had to leave a top job at Deloitte and Touche in 2003 after his financial woes became embarrassing; owed the Rhema Church more than R700 000 when he was asked to resign from his post as CE and spokesperson by a full board meeting in 2004; and had to repay R24 000 to Director-General in the Presidency Frank Chikane when he left his job there under a cloud in 2004. Full Mail & Guardian report Full report on the IoL site

A travel agency owner claims Niehaus duped her into giving him a free luxury Indian Ocean island holiday in a top hotel. Cheryl Clur, owner of East London travel agency Let's Travel, alleged that Niehaus approached her about six years ago to organise a last-minute trip to Mauritius at a cost of more than R100 000, reports The Star. Clur said: 'He told me he had been ill with leukaemia, had chemotherapy and wanted a holiday for his wife and two children. He played on my emotions with his illness.' He ended up paying her back about R20 000 after she had paid for the trip upfront, the report said. Full report in The Star

Yet another victim of Niehaus - a top advertising company, to which he still owes more than R1.5m - has told of the spin doctor's ducking and diving, reports The Times. In the widening scandal over Niehaus' shambolic personal financial affairs, Mortimer-Harvey claims it is still out of pocket for more than R1.5m after Niehaus failed to pay them for work done in 2006 for the Children United Foundation South Africa, the report notes. Niehaus was its CE at the time. The SA Sports Confederation and Olympic Committee, and the children's foundation, announced plans to build a national sports college for 3 000 underprivileged sports students. Though the project was scrapped, Niehaus ran up large debts for Mortimer-Harvey's services, which were billed at cost, according to the report. Full report in The Times

Criminal charges have been laid against Gauteng Premier Paul Mashatile for allegedly failing to report Niehaus' attempted fraud, police have confirmed. A report on the News24 site says that police spokesperson, Director Govindsamy Mariemuthoo, confirmed that a case had been opened. The complaint was brought by DA leader in the Gauteng legislature, Jack Bloom, who said it included Mashatile, Niehaus and Pierre Swart, the other party to the alleged corruption. Bloom said those implicated could extend to include all executive members of the legislature who had any knowledge of wrongdoing but did nothing, including former Premier Mbhazima Shilowa, Transport MEC Ignatius Jacobs, Education MEC Angie Motshekga and Agriculture MEC Khabisi Mosunkutu. Gauteng provincial spokesperson Simon Zwane said the provincial government would co-operate with the police investigation. Full report on the News24 site See also a Beeld report

However, loopholes in anti-corruption laws may see efforts to prosecute Mashatile and Shilowa come to nothing, suggests a Cape Times report. It says the Independent Democrats have filed a complaint with police against Niehaus. Bloom said the complaints were filed under the Prevention and Combating of Corrupt Activities Act. Section 34 of the Act makes it an offence not to report suspected corruption if it involves more than R100 000. But Derek Luyt, of the Public Service Accountability Monitor, said while forging signatures was an act of fraud, there was no fixed amount of money involved in what Niehaus had tried to do. Full Cape Times report (subscription needed)

It has emerged that Niehaus is also lying about his academic qualifications, a Beeld report says. He has to explain his claim that he holds a doctorate degree in theology from the University of Utrecht in the Netherlands. Niehaus claims to hold a doctorate summa cum laude on his CV, but the university said he did not obtain the degree in the years he served as ambassador in The Hague as he claims. A report on the News24 site says he also never obtained a BA degree summa cum laude at Wits University in 1983 as stated on his CV. 'We can confirm that he was enrolled at the university, but he never graduated,' Wits spokesperson Shirona Patel is quoted as saying. Full Beeld report Full report on the News24 site

It was the Gauteng government that discovered Niehaus had forged a letter to secure a loan - it denies that he first brought the matter to its attention by confessing. The government is quoted in a report on the Politicsweb site as stating that 'the alleged incident was detected by (Geda) itself, the then chairperson of the board, Mr Keith Khoza, investigated and confronted Mr Niehaus about the allegations, Mr Niehaus resigned from Geda as soon as the allegations surfaced'. The Gauteng government did not suffer any losses and 'no action could be taken after he resigned', it is quoted as saying. Spokesperson Simon Zwane said the government believed that the matter had been handled in a way where no money had been lost and so there would be no point in taking it further. The ANC's position on the matter - and why it decided to retain Niehaus' services in the party - is defended by Secretary General Gwede Mantashe in the So Many Questions feature in the Sunday Times. Full Politicsweb report Gwede Mantashe interview

Fraud and corruption in the ANC could compromise the rule of law in SA, warns the SA Institute of Race Relations. Business Day quotes SAIRR deputy CE Frans Cronje as saying: 'That the ANC was aware of the corrupt dealings of the man they appointed as their spokesperson to convey their election manifesto promise to act against corruption is beyond scandalous ... When the ruling party shows a disregard for the rule of law that same disregard will begin to manifest itself in government.' Rhema church disputed media reports that Niehaus owed it R700 000, saying the matter was settled when Niehaus left his job with the church. The institute cautioned that principles, in addition to the presumption of innocence, needed to be applied to political leaders. Full Business Day report See Today's ANALYSIS