By Lehlohonolo Lehana.
The High Court in Johannesburg has ordered that the decision by the SABC to award a contract worth R185-million to Mafoko Security in 2017, be set aside.
This comes after The Special Investigations Unit (SIU) issued a damning report about the security tender at the public broadcaster in 2019.
The report found evidence of irregularities in the interim board’s awarding of a security contract to Mafoko Security.
President Cyril Ramaphosa appointed the SIU to investigate the procurement of goods, works and services by the SABC from Mafoko Security Patrols.
Mjayeli Security, who also competed for the tender, brought an application to review the awarding of the contract that they deemed to be irregular.
Now the High Court has ordered that the SABC obtain an independent audit verification.
The court will thereafter determine the amount of profits that Mafoko should pay back to the SABC and the SIU.
In another judgement, the court dismissed an application by members of the former interim board, which sought to review and set aside a SIU report that recommended that they be declared delinquent.
The application was brought by former interim board members Khanyisile Kweyama, Mathatha Tsedu, Febe Potgieter-Gqubule and John Matisohn.
The interim board members argued that the SIU report was irrational, the SIU’s investigation was unconstitutional and contravened the principle of legality, and the SIU went beyond the scope of the President’s Proclamation. Furthermore, they contended that the SIU acted irrationally and procedurally unfairly and exceeded its powers in reaching the findings.
“However, the High Court dismissed the application and ruled that the SIU acted in accordance with the Proclamation by the President, which included investigating maladministration,” the SIU said
SIU has welcomed two judgments by the High Court against former members of the interim board of the SABC and its decision to award a multimillion rand security tender to Mafoko Security Patrols Pty Ltd.
“The interim board took a decision to award Mafoko a security tender for a period of five years commencing 1 August 2017 at a total contract price of R185 519 425.61, which was R2 300 955.43 more than the contract price for Mjayeli Security. Mjayeli was recommended by three tender committees to the board for appointment.
SIU head Advocate Andy Mothibi said: “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”.