Johannesburg - The long knives are out for National African Federated Chamber of Commerce and Industry (Nafcoc) president Lawrence Mavundla, amid allegations of improbity over unpaid proceeds of an auction amounting to R1 million due to the ANC.
The businessman is one of the 50-year-old black business body’s two rival presidents.
He is accused by the organisation’s presidential council of allegedly bringing it into disrepute.
The dispute over money from the auction of Madiba statues has been dragging on for 18 months, since July 2013.
A meeting of the organisation’s president’s council, held on Tuesday in Pretoria, resolved to suspend Mavundla and relieve him of all his duties.
Its letter, e-mailed to him the same day, states: “You are advised that the Nafcoc president’s council meeting held on January 20, 2015, resolved to suspend you from your duties as Nafcoc president.”
The presidential council is a committee of the presidents of all Nafcoc’s affiliated sectoral members, together with the executive committee.
The letter was signed by Mavundla’s deputy, Churchill Mrasi.
It accuses Mavundla of “misrepresenting your personal company, Zimele Auctioneers, as a Nafcoc initiative in fund-raising for the ANC at a BBC dinner held on July 31, 2013”.
The suspension is without the monthly honorarium, amounting to the net amount of R46 000.
The BBC refers to the Black Business Council, an umbrella black business body to which Nafcoc is affiliated.
Xolani Qubeka, chief executive of the BBC, confirmed the organisation had yet to receive the proceeds of the auction conducted by Zimele Auctioneers at its gala dinner held at Gallagher Estates in July 2013.
He put the amount at R1 million.
He said the BBC had instituted legal action to recover the money from the auctioneers.
“We are pursuing the company, not Lawrence per se, to hand over the proceeds,” said Qubeka.
Mavundla is a shareholder and chairman of the auction company.
However, Qubeka said the fundraising was for the joint benefit of both the BBC and the ANC.
He denied the ANC was owed any money, saying the Nafcoc statement reflected a misunderstanding.
ANC spokesman Zizi Kodwa said the BBC did not owe the party money.
He said a meeting of the Nafcoc Federal Council, planned for Tuesday, would take a final resolution on Mavundla’s suspension.
Mavundla denied the charge against him, and blamed the BBC for the delay in handing over the proceeds of the auction.
He said Zimele could not hand over the money without the BBC giving it a tax exemption certificate confirming that it could legally receive donations.
He had failed to get the certificate despite numerous requests.
Mavundla is further accused of creating parallel structures within Nafcoc, including a parallel set of trustees for the federation’s R600m investment holding company, Silver Vanity.
He was ordered to not interfere with the investigation into his conduct, “or attend to any affairs of Nafcoc or come to the offices of Nafcoc without an invitation from the chairperson of the committee, Motsepe Matlala”.
Mavundla was also ordered to return all Nafcoc property in his possession.
In a statement to the media, Nafcoc secretary-general Monga Phaladi said: “The Federal Council, the organisation’s highest decision-making body, will meet soon to discuss the matter and to pass a resolution on the suspension.”
However, Mavundla was at the Nafcoc head office in Rivonia, Johannesburg on Friday and laughed off his purported suspension, saying it was both “unlawful, illegal and unconstitutional”.
In fact, he chaired a special meeting to discuss the matter.
The Sunday Independent found the meeting packed with representatives of the organisation’s constituent affiliates.
Senior vice-president Paul Ngema said only the National Industrial Chamber had failed to attend.
It did not explain its absence or send an apology.
Mrasi added that Friday’s meeting, which resolved that he and Phaladi be suspended, was illegal as the official meeting was only scheduled to be held on Tuesday.
“That meeting was illegal. He invited those people he thinks he can manipulate.”
In a letter addressed to Mrasi and Phaladi, Mavundla’s and Nafcoc’s lawyers, Ngcebesha Madlala Inc. said that in terms of the Nafcoc constitution, the president’s council does not have the power to suspend their client.
It could only deal with matters delegated to it by the Executive Committee and only make recommendation to the Nafcoc Federal Council, pertaining to the approval of the budget and other matters.
“It is clear that the Presidents’ Council does not have the power or authority to engage on any matter, other than such matter that may have been referred to it by the Executive Committee, let alone to take a resolution thereof, other than to recommend appropriate course to be adopted by the Council.
“Accordingly, your action purporting to deliberate on an item that has not been referred to the President’s Council by the Executive Committee is ultra vires and thus unlawful,” said the lawyers.
They also pointed out authority to convene the President’s Council rested with the president of Nafcoc.
“Consequently, (your) convening of the Presidents’ Council meeting is not only unconstitutional, but blatantly unlawful,” the letter added.
They accused Mrasi, Phaladi and the others of trying to unconstitutionally “usurp the authority of our client”, adding the move “smacks of desperation informed by ignorance of the constitution of Nafcoc”.
The lawyers added that by issuing the statement to the media, Mrasi and Phaladi had damaged the reputations of both Mavundla and Nafcoc.
They demanded the pair retract and apologise by Thursday 1pm, or face a claim for damages.
The deadline was not met. - The Sunday Independent