Investigation Clears DA Leader John Steenhuisen of Misappropriation, But Questions Remain

Helen Zille announced on Monday that an internal investigation by the Democratic Alliance (DA) had found no evidence of misappropriation of party funds by leader John Steenhuisen. However, significant questions still linger regarding financial conduct within the party.

The investigation report, adopted by the DA's highest decision-making body, involved scrutiny of allegations against Steenhuisen and party finance chair Dion George. Led by Glynnis Breytenbach, chairperson of the DA’s federal legal commission, the inquiry was prompted by a public spat between the two party officials.

“One of the allegations the FLC investigated was that [Steenhuisen] had misappropriated party funds through the use of his party-issued credit card,” Zille explained. The findings indicated that the expenditure on the card had been reconciled and no prima facie evidence of misappropriation was found. Personal expenses charged to the card were described as “limited” and had been adequately explained and reimbursed.

Following these findings, Zille announced that a “disciplinary inquiry” would now probe the actions of both Steenhuisen and George to assess whether either had brought the party into disrepute. “If anybody involved in the matter publicly discusses it, this could be grounds for expulsion from the DA,” she warned.

In response to inquiries from Daily Maverick, Zille stated, “The FLC was investigating the complaints received in connection with this matter. The [federal executive] adopted the report and issued a statement. That is all we wish to say at this time.”

The initial allegations against Steenhuisen first surfaced when Daily Maverick reported that his party credit card had been withdrawn due to unmanageable account reconciliation. George confirmed that he had taken the card away from Steenhuisen in his capacity as finance chair. Evidence in the form of text messages from an unnamed staff member suggested that George had to "speak to John" about issues concerning his credit card.

George further revealed to City Press that among the personal expenses charged to Steenhuisen’s party card were Uber Eats deliveries for his family and other household expenses. Steenhuisen, however, insisted that it was his decision to return the card. “I chose to return the card and moved instead to a reimbursative system to deal with claims incurred from the execution of my duties, given that the administration relating to the card proved onerous,” he told Daily Maverick.

Despite the report's reassuring findings, unanswered questions remain, particularly surrounding why Steenhuisen's card was withdrawn or returned in the first place. Many companies have strict policies against using business credit cards for personal expenses, even if the amounts are later reimbursed, and such actions could lead to severe consequences, including dismissal.

Experts have weighed in on the governance and ethical implications of the situation. Parmi Natesan, CEO of the Institute of Directors in South Africa, emphasised the importance of having clear financial policies within organisations regarding the use of company credit cards. “It is generally preferable for business and personal expenses to be kept separate,” she noted.

Professor Deon Rossouw, former CEO of The Ethics Institute, reiterated the fundamental rule that company credit cards should be used exclusively for business-related expenses. While some exceptional circumstances could justify a deviation from this rule, Rossouw stated it would be wise to seek prior approval before making personal charges.

Meanwhile, the specific allegations being investigated by the DA's federal legal commission remain somewhat vague. Although Zille highlighted the findings related to Steenhuisen's credit card use, there was no indication of any conclusions regarding alleged wrongdoing by George. He has faced scrutiny for lavish spending, claims of bullying staff, and other serious accusations, but the clarity around whether these charges were substantiated or investigated remains elusive.

The timeline for the disciplinary inquiry into Steenhuisen and George has not been made clear, but urgency is palpable with the DA's next leadership election looming in April. As this political saga unfolds, the stability and integrity of the DA are under the microscope, raising critical questions about leadership and accountability within the party.

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