Johnathan Paoli
THE South Gauteng High Court has reviewed and set aside a decision by the former interim board of the SABC to appoint Mafoko Security Patrols to provide physical security at the broadcaster.
SIU spokesperson Kaizer Kganyago said Mafoko Security Patrols were not the recommended service provider but the interims board awarded it the R185 519 425.61 tender for five years commencing 1 August 2017 – R2 300 955.43 more than that of Mjayeli Security, which had been recommended by three tender committees.
This comes after another judgement in which the High Court dismissed an application by the former interim board of the SABC to review and set aside an SIU report, which recommended that they be declared delinquent.
In terms of the judgement, Mafoko Security Patrols must, within 30 days submit, an audited statement of the expenses incurred in the performance of its obligations in terms of the tender, the income received and the net profit it would have earned at the expiry of the contract, in addition to the SABC being ordered to obtain an independent audited verification within 60 days.
Consequently the court would determine the amount of profits that is required to be paid back by Mafoko to the SABC or the SIU.
Kganyago said the investigation found that the interim board had irregularly awarded the security contract to Mafoko, and believes that under the circumstances it was reasonable for them to consider launching an investigation, canceling the tender, or remitting it for reconsideration.
Kganyago said that the interim board failed to discharge its fiduciary duties in that respect and failed to act in the best interests of the SABC.
However, former interim SABC board members, Khanyisile Kweyama, Mathatha Tsedu, Febe Potgieter-Gqubule, and John Matisohn argued that the SIU report was irrational, unconstitutional, and contravened the principle of legality; and that the SIU went beyond the scope of the President’s Proclamation.
In addition, the board contended that the SIU acted irrationally and procedurally unfairly and exceeded its powers in reaching the findings.
In dismissing the application, Judge D Dosio said that the schedule of the Proclamation gave the SIU wide powers.
In addition, he said that in terms of Proclamation R19 of 2018, authorised by President Cyril Ramaphosa to investigate, among others, the procurement of goods, works, or services by or on behalf of the SABC from Mafoko and to recover any financial losses suffered by the State or SABC.
Head of the SIU, Andy Mothibi praised the judgements as an important achievement in consequence management and accountability of the Accounting Authority.
“The court’s reference to the King Code on Good Governance underscores the requirements, as also provided for in the Public Finance Management Act, for the Boards of Directors to always act in the interest of State Institutions,” said Mothibi.
Mothibi said that the unit has maintained its aggressive stance against those involved in causing financial losses to state institutions and should be held accountable irrespective of their level of authority.
The SIU is empowered by the Special Investigating Units and Special Tribunals Act of 1996 and is expected to hand over any evidence relating to criminal activities to the NPA for further action.
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