New+twist+in+prisons+scandal,+Basson+and+du+Plessis,+Beeld

Beeld, Johannesburg, 30/11/2006 07:37 - (SA)
=New twist in prisons scandal=


 * Adriaan Basson and Carien du Plessis, Beeld**

Johannesburg - High-profile South Africans with ANC links, including President Thabo Mbeki's political adviser, own the controversial IT-company recently exposed for tender wrangling with the Department of Correctional Services (DCS).

Beeld and Die Burger two weeks ago revealed how Sondolo IT, which is part of the Bosasa group of companies, wrote large parts of a multi-million rand security tender that was subsequently awarded to them by the DCS for R237m.

On Thursday Beeld revealed those who own shares in Sondolo IT. They include: Titus Mafolo, political adviser to Mbeki, former ANC MP and chairman of the controversial Native Club; Ronnie Mamoepa, Foreign Affairs spokesperson; Gavin Watson, CEO of Bosasa and long-standing acquaintance of commissioner Linda Mti, the outgoing prisons chief, and Seth Phalatse, former chairman of the Strategic Fuel Fund who resigned after allegations of corruption.


 * No comment**

Phalatse's wife, Lorato, is head of Mbeki's office.

None of the four replied to Beeld's queries.

Beeld asked them why the entities, through which they own shares, decided to invest in the unknown, newly formed Sondolo IT.

In another development, the position of chief financial officer at the DCS, which is currently held by Patrick Gillingham, was advertised in Sunday newspapers over the weekend.

By the time of going to press, the DCS hadn't reacted to Beeld's questions about Gillingham.

The shares of Sondolo IT, which, since its registration on February 10, 2005 has been awarded tenders of almost R500m by the DCS, were on the same day divided between Bosasa Operations (40%), Kgwerano Financial Services (25%), Bancar Investment Holdings (25%) and the non-profit Bosasa Youth Development Foundation (10%).

The person with the most Sondolo IT shares (13,32%) is Carol Mkele, a businesswoman from Port Elizabeth. Mkele has a long-standing relationship with Watson and his family.

Mkele, who is also a director of Sondolo IT and other Bosasa companies, didn't want to comment.

Watson owns 10,4% of Sondolo IT through the Gavin Watson Family Trust, and 7,5% of Sondolo IT belongs to Mafolo's Mapetla Family Trust.

Phalatse owns 1,25% of Sondolo IT, while 0,5% of the shares are under Mamoepa's control. Mafolo and Mamoepa hold their shares through Bancar, while Phalatse owns five percent of Kgwerano.

Eighteen entities and 16 individuals - some of them Bosasa employees - are involved in Sondolo IT's shareholding.

One of these individuals is Tony Perry, Bosasa's group secretary. Beeld originally revealed Sondolo IT's link with Mti when it came to light that Perry registered a private company for the prisons chief.

Perry holds 2,5% of Sondolo IT through his shareholding in Kgwerano Management and Employees. Fantas Mobu, head of procurement at the State Information Technology Agency, owns 0,5% of Sondolo IT and is the only shareholder who reacted to Beeld's earlier revelations. Mobu said that because of his indirect shareholding, he is not involved in the daily management of Sondolo IT, but it would be "sad and disappointing" if the allegations of tender wangling prove to be true.


 * From: http://www.news24.com/News24/South_Africa/Politics/0,,2-7-12_2037743,00.html**

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