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Port Elizabeth pastor testifies in case of alleged ‘kickback’ deal for housing project


PORT ELIZABETH, June 20 (ANA) – A 69-year-old former pastor from St Peter’s Congregational Church in Port Elizabeth has given evidence in the city’s commercial crimes court on how he used church funds which were to assist in an alleged kickback deal for a low-cost housing project.

Dr Deric Derbyshire, who has since retired from preaching after suffering from a stroke two years ago, told the court on Monday that he had agreed to "sponsor" a member of his church, Curtis Daniels, who knew Bishop Mzukisi Banzana.

Derbyshire was testifying against Banzana who is facing three corruption charges after allegedly receiving kickbacks, totaling almost R3 million, for helping businesses to secure contracts. He has pleaded not guilty to the charges against him.

At the time of the alleged offences, Banzana was the general manager of the Mzingisi Development Trust. The trust was established in 1992 by ANC struggle stalwart Govan Mbeki and was aimed at poverty alleviation.

In 1997, the trust secured land from the Transitional Local Council of Port Elizabeth for development and Banzana managed the business activities of the trust.

In giving evidence, Derbyshire told the court that Daniels had approached him sometime in 2007 saying that he needed an advance for Banzana in order to secure a big housing contract.

He insisted that he was not entirely sure of the exact purpose for the money but went on to supply Daniels with three amounts, totaling R130,000.

"Some of the money came from the church safe, donations and the rest of it came from a personal property that I had sold," Derbyshire told the court.

"Curtis told me that he needed the money for this building project, he said that he was making money out of it and that he would repay us," said Derbyshire.

State Prosecutor Ronelle Brink indicated that Derbyshire was a possible section 204 witness, which means that should the court accept his evidence he will be indemnified from prosecution.

Defence Advocate Tom Langehoven tore into the former clergyman’s original statement and questioned his benefit in the alleged scheme, to which Derbyshire replied: "I was just trying to help a member of my church."

The frail clergyman in the witness box added that the church also needed money.

"We needed repairs and maintenance to be done, in the church there is always work to be done," he said.

He initially told the state that he had had "no dealings with the situation" and was a "mere spectator", but then later hesitantly conceded to the defence that he was part and parcel of the profit sharing when and if the deal pulled through.

Daniels’ wife, Alicia also testified at court on Monday, and explained how both her and her husband met Banzana at a coffee shop where he would receive money as an allged bribe for a promised contract.

She told the court she was aware of three incidents when her husband handed over money in the form of a bribe to Banzana.

"He thought he was paying for work we were going to get, we knew it was a bribe," she said.

In May 2013, the Asset Forfeiture Unit seized Banzana’s assets, including his R1.5 million Theescombe home, a Nissan Pathfinder SUV and two BMW vehicles.

The trial continues.

– African News Agency (ANA)