MEC cleared of bribery

2003-12-18 18:25

Justin Arenstein

Kwamhlanga - Mpumalanga's commission into tender fixing and bribery allegations has partially cleared public works MEC Steve Mabona of impropriety.

Acting Mpumalanga public works head, William Mthombothi, has however been axed with immediate effect for his role in approving a string of irregular contracts.

The commission, appointed by Premier Ndaweni Mahlangu, said on Thursday it found no evidence that a R1m payment to Mabona was a kickback from crooked businessmen.

The R1m payment, by Mpumalanga tycoon Walter Senoko, was made just days after his company, Positioning Corporate Underwriters & Insurance Consultants (PCUIC), was irregularly paid R6.6m - without a contract and without having to deliver any services.

"The payment to Mabona was a private business [transaction] relating to the sale of a house and car to Senoko. There is not a shred of evidence that it was linked to the PCUIC contract," said Mahlangu.

Tender procedures

"Politicians do not, in any case, play a role in tenders," mahlangu said.

The commission report itself was, however, less emphatic - explicitly saying it could not make a finding on Mabona's role in tender procedures due to a lack of physical evidence.

Where the commission was able to rule, it found that Senoko irregularly benefited from a string of dodgy contracts, including the illegal R6.6m PCUIC deal, an irregular R290 000 travel agency deal, and an unquantified vacuum cleaner deal.

The commission also warned that attempts to award Senoko a R9m rental contract for construction equipment had "seriously compromised" government procurement procedures.

In addition, the commission confirmed that junior officials were pressured into irregularly paying PCUIC R6.6m despite there being no contract, no tender board approval, no bank guarantees, no due diligence by government, and no budget approval for the expenditure.

Front company The commission report also criticised Senoko for overcharging Mpumalanga for travel agency services he provided, again without following necessary tender procedures.

Senoko used a front company to organise Mabona's trip to China last year, during which Mabona inspected construction equipment that Senoko proposed renting to government in a R9m deal.

Senoko and three other unnamed businessmen accompanied Mabona on the trip.

"In certain instances, the amount charged by [Senoko] is far in excess of the actual amount budgeted for travel and accommodation expenses," the report reads.

"The overall picture that emerges ... is a lack of control and laxity on the part of department officials."

The commission recommended that Mpumalanga's public works department urgently improve its financial controls, comply with tender regulations, and try resolve tension between public works and the provincial Treasury.

The commission declined to make recommendations on any aspect of Mabona's role in the scandal.

- African Eye