Call for Public Protector probe into multi-million rand North West fraud claims

Public Protector Busisiwe Mkhwebane. File photo: ANA

Public Protector Busisiwe Mkhwebane. File photo: ANA

Published May 19, 2018

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Mahikeng - The South African National Civic Organisation (Sanco) in the North West has called on the public protector to investigate allegations of fraud related to a multi-million rand payment to a host of companies and patents representing Mvest Trust in which African National Congress spokesman Pule Mabe allegedly has interests.

“The investigation by the North West Development Corporation Board that is said to have commenced cannot be objective and credible. At best it would be seen as some sort of a cover-up and broadly following other investigations that the provincial administration sought to manage to minimise reputational damage and avoid accountability,” Sanco North West chairman Paul Sebegoe said in a statement.

The provincial government reportedly awarded Mvest Trust a tender to develop an app for dry cleaning and laundry services in a deal worth R49 million, he said. 

The North West Development Corporation's board was allegedly interrogating the actions of former acting CEO Mike Mthimunye, who was believed to have unlawfully authorised the payment of R49 million to Enviro Mobi and Kariki Media. Unless the investigation was conducted independently, its findings would be highly questionable because no one expected that the corporation would "come up with a self-incriminating report".

”The allegations refute a claim by premier Supra Mahumapelo that his administration has, unlike previous ones, benefited local businesses and not external players,” he said.

The tender, which was awarded by the subsidiary of the North West government to Mvest Trust in June last year, allegedly had the signatures of Mabe's cousin Eulender Rakoma and Mabe's former business associate Tinyiko Mahuntsi. Mabe had denied benefiting from the tender but had conceded that he was entitled to receive incentives as the patent holder of the idea, Sebegoe said.

African News Agency (ANA)

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