Home Business High Court Judgments Confirm Irregularities in SABC Security Tender

High Court Judgments Confirm Irregularities in SABC Security Tender

by Central News Reporter
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The Special Investigating Unit (SIU) has obtained two significant court judgments against former members of the interim board of the South African Broadcasting Corporation (SABC) regarding the award of a multimillion rand security tender. The rulings exposed irregularities and have been welcomed by the SIU.

In one judgment, the court invalidated the decision to award a physical security services tender worth R185 million to Mafoko Security Patrols Pty Ltd. The court deemed the decision to be “invalid” and “set it aside”.

Mjayeli Security, recommended by three tender committees for appointment, had a lower contract price than Mafoko Security.

As per the court’s ruling, Mafoko Security Patrols is required to submit an audited statement of expenses, income, and projected net profit within 30 days.

Additionally, an independent audited verification will be conducted within 60 days to ascertain the amount of profits that Mafoko must repay to the SABC or the SIU.

In a separate judgment, the court dismissed an application by former interim board members Khanyisile Kweyama, Mathatha Tsedu, Febe Potgieter-Gqubule, and John Matisohn.

They sought a review and setting aside of an SIU report recommending their declaration as delinquent.

The SIU investigation uncovered irregularities in the awarding of the security contract by the interim board to Mafoko Security Services. The court deemed their actions wrongful and irregular, stating that the interim board should have considered launching an investigation, canceling the tender, or requesting its reconsideration. The court found that the interim board had failed in their fiduciary duties, acting against the best interests of the SABC.

The former interim board members argued that the SIU report was irrational, unconstitutional, and exceeded the scope of the President’s Proclamation. They also contended that the SIU acted unfairly and exceeded its powers. However, the court dismissed their application, ruling that the SIU had acted within the provisions of the Proclamation, which explicitly authorized an investigation into maladministration.

SIU head Advocate Andy Mothibi emphasized that these judgments highlight the importance of adhering to good governance principles and acting in the best interests of state institutions, as outlined in the King Code on Good Governance and the Public Finance Management Act.




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