A MEMBER of Parliament and a towering figure in the legal fraternity has come under scrutiny for allegedly misrepresenting his stake in a liquidation company that’s been awarded lucrative contracts, Weekend Argus can reveal.
Professor Mathole Motshekga, who was a member of the Judicial Services Commission and the husband of Basic Education Minister Angie Motshekga, declared that he owned a 20% stake in a BEE liquidation company, Sechaba Trust.
However, he owned a 54% stake, according documents seen by Weekend Argus.
Sechaba Trust was recently awarded the liquidation of commercial airline operator Comair and African Global Operations – formerly known as Bosasa.
According to the company’s share register, Motshekga has been a major shareholder since 2011.
But in the 2017, 2018 and 2019 parliamentary members’ interest register Motshekga said he only owned 20%.
In 2020 and 2021 he didn’t declare the actual shareholding but listed himself as a director.
This was revealed in leaked emails where an investigator from the Special Investigating Unit (SIU) posed questions to the Master of the High Court on Motshekga’s shareholding.
The unit is probing allegations of maladministration, corruption and fraud at the Office of the Master of the High Court nationwide.
"Since the beginning, MP Motshekga has only ever declared his interest at 20% of Sechaba Trust, this is patently untrue and misleads both Parliament, SARS and the courts, in fact it is tantamount to perjury," the email read.
“On inspection, the share register reflects Motshekga as the majority shareholder in Sechaba Trust … the share register reflects that Motshekga owns 54% of Sechaba Trust and is in fact the de facto majority shareholder in the largest liquidation group on the panels of both SARS and at the masters office.
“In pursuing the members’ declarations, Motshekga also declares only R20 000 as other income over a span of years,“ the investigator said.
“Whilst he is in fact a 54% of Sechaba, Motshekga surely would have received healthy dividends considering that Sechaba Trust reflects that they conduct business amounting to be between R50 million and R80m per annum,” said the investigator, adding that “being a liquidator expenses are attributed to account that they liquidate, therefore profits would be at minimum between 10% and 30% - presumably a minimum of R10m per annum.”
The investigator further said: “Mr Motshekga would therefore earn a dividend of at least R5.4m per annum, yet this does not reflect at all in any of his parliamentary declarations.”
SIU’s spokesperson, Kaizer Kganyago, said the unit did not investigate people but processes.
And that this matter fell within the proclamation signed by President Cyril Ramaphosa to probe the Office of the Master of the High Court.
Motshekga told Weekend Argus the disclosure lapses were unintentional as there was “some changes”.
“The people at Sechaba will be able to explain, right now I’m too busy in politics, I don’t have time to be going there to check the records as to what happened at what stage … there have been changes over time and to answer that question one has to take the changes into account,” he said.
Motshekga vehemently denied any wrongdoing.
“I’m a lawyer by profession, I understand the law and I’m a lawmaker, I will never do anything contrary to the law.”
Another director at Sechaba Trust, Cloete Murray, said the allegations against Motshekga were incorrect.
“That’s factually incorrect, he declared his shares in Sechaba from day one, so I don’t know where you get your stories but it is factually incorrect,” Murray said.
Co-chairperson of Parliament’s Ethics Committee Bekizwe Nkosi said: “The joint committee... can neither confirm or deny this matter. As a general principle the committee does not comment on allegations.”
During Weekend Argus’ investigation a whistle-blower, who raised concerns over Motshekga’s role on the national panel of liquidators, said the allegations were not new.
“Without due process and proper consideration the masters panel has managed to place a senior parliamentarian and his company Sechaba Trust...in a strategic position where he now can obtain benefits at the expense of the public purse with no regard to the rules set out by Parliament,” the whistle-blower said in a email, which was also sent to the masters office, the SIU, SAPS and Minister of Justice Ronald Lamola.
“Furthermore the masters panel have in effect condoned the fact that Motshekga has in fact misled Parliament for many years in that he understated his direct shareholding in Sechaba Trust given the fact that a few weeks ago I sent all the details to (you), raising the proverbial warning flags ... Did you bring this to the attention of the masters panel?”
But the email address used for the minister, Weekend Argus learned, was inoperative as it’s the email Lamola used before his term in cabinet commenced.
“The minister is not aware of any correspondence pertaining to a conflict interest in relation to the said Member of Parliament,” said Lamola’s spokesperson Chrispin Phiri.
“The declaration of shares by members of Parliament is governed by code of conduct for members of parliament. The Minister as a member of the executive arm of the state has no role in another arm of the state.”
A lawyer whose expertise is in liquidation matters, Tim Dunn, said he’d had an interest in the matter for a “very long time”.
“Motshekga misled Parliament and it needs to be exposed,” said Dunn.
“And there’s certainly more to it. We also investigate dodgy liquidation matters, but as an attorney it would be premature to comment on that.”
Weekend Argus.