DCS+scandal+has+Simmers+links,+Julius+Cobbett,+Moneyweb

Posted: Thu, 30 Nov 2006 18:53 | © Moneyweb Holdings Limited, 1997-2006
=DCS scandal’s Simmers links=

//Names disclosed in a Correctional Services tender scandal betray links to a very rich clique of Simmer and Jack shareholders.//


 * Julius Cobbett**

The list of shareholders involved in a tender scandal with the Department of Correctional Services (DCS) sheds light on a tight knit group of individuals with political connections reaching to President Thabo Mbeki. The list is also linked to Vulisango, the controversial empowerment partner of uranium and gold miner Simmer and Jack.

On Thursday Beeld named shareholders of Sondolo IT, which was awarded tenders of almost R500m (some allegedly irregular) by the DCS since its registration on February 10 2005. Beeld wrote that these shareholders 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 Seth Phalatse, former chairman of the Strategic Fuel Fund who resigned after allegations of corruption. Phalatse's wife, Lorato, is head of Mbeki's office.

Gavin Watson is the brother of Valence and Ronnie Watson, who are together worth hundreds of millions of rand through their shareholding in Vulisango. The Watsons are members of the well-known Eastern Cape rugby-playing family. Ronnie previously served high up in the ANC intelligence structures and was employed for a period by Brett Kebble’s family as a labour consultant.

According to Beeld, the person with the most Sondolo IT shares (13,32%) is Carol Mkele, a businesswoman from Port Elizabeth who has a long-standing relationship with the Watson family. Here one finds another Simmers’ link. Carol Mkele appears to be related to Archie Mkele, Vulisango shareholder and former national South African rugby player. Moneyweb’s calls to Archie Mkele to confirm this went unanswered.

Beeld said that 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.

The Democratic Alliance (DA) exposed alleged breaches of the law by the DCS on July 13 2006. In response to a parliamentary question, the DCS revealed that it extended by R82m a contract with the Bosasa Group. The extension of the contract was in direct contravention of the Public Finance Management Act (PFMA), alleged the DA.

“The original value of the contract was R239m. The value of the extension to this contract was R82m. The R82m extension constitutes a 34,3% increase in the original value of the contract,” wrote the DA’s James Selfe in an e-mailed statement.

The DCS’s reply revealed that the contract’s extension had not been put out to tender, which, according to the DA, was required by law.

As Moneyweb has previously reported, Vulisango has further political links through shareholder Siviwe Mapisa, brother of Home Affairs Minister Nosiviwe Mapisa-Nqakula who, in turn, is wife to Safety and Security Minister Charles Nqakula. Another Vulisango shareholder, Nozuko Pikoli, is the wife of Vusi Pikoli, national director of the National Prosecuting Authority.


 * From: http://www.moneyweb.co.za/specials/corp_gov/492308.htm**

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