Publication: Sunday Independent Issued: Date: 2007-04-29 Reporter: Walter Ka Nkosi Reporter: Justin Arenstein

Corruption Trial Rocks Province

 

Publication 

Sunday Independent

Date

2007-04-29

Reporter

 Walter Ka Nkosi, Justin Arenstein with African Eye News Service

Web Link

www.sundayindependent.co.za

 

Millions of rands' worth of government bribery and intimidation revealed in Mpumalanga hearing

Advocate Stanley Soko, Mpumalanga's former director-general, allegedly forced government contractors to meet in car parks and dark streets to pay him massive bribes, the Nelspruit regional court heard this week.

Soko allegedly forced executives from a fledgling public relations company, Rainbow Kwanda Communications, to hand over R700 000 at a string of such meetings in Pretoria after threatening to have them arrested for corruption if they did not "show gratitude and help me out".

Kedibone Mashamaite, the Rainbow Kwanda director, told the court that Vusi Mona, a former City Press editor, had helped intimidate him into paying "hush money" to Soko to keep Scorpions investigators off his back.

Mona was a secret shareholder in Rainbow Kwanda and had allegedly used his extensive political contacts while still editor to help the start-up company secure a lucrative R30 million Mpumalanga government public relations contract. Soko and Ernest Khosa, the Mpumalanga Economic Empowerment Corporation (Meec) chief executive, then promptly arranged for the government to pay Mashamaite R3,6 million before he had done any work.

"The very next day they started making their demands [for bribes]," Mashamaite testified.

"It started with Soko saying he had a problem and that he needed R12 000. I [reluctantly] paid in cash, but then he said he still had problems and needed R25 000.

"Eventually, Mona summoned me to a meeting at Khosa's house, where Khosa and Soko each demanded a R1 million bribe for having approved the tender… I was shocked, because, if I paid the money, I would not have enough left to do the job."

When Mashamaite insisted that he did not have the cash flow to make such large payments, Soko allegedly demanded R100 000 per month.

"I did not have this kind of money, so had to raise as much as I could elsewhere. When I went to pay, my jacket pockets were so heavy with the cash that I myself felt heavy," said Mashamaite.

Khosa allegedly made similar demands, though his bribes were reportedly paid into a network of "front" bank accounts. When the cash drain started threatening Rainbow Kwanda's survival, Mashamaite refused to co-operate any further.

"I was then summoned to Pretoria for interrogation by the Scorpions. Cornwell Tshavhungwa [then the deputy director of the National Prosecuting Authority] interviewed me about the contract and the irregular R3,6 million payment. At the end of the interview, he said I should think of ways to help him in the investigation," said Mashamaite.

"Shortly afterwards, Khosa phoned me to say that Tshavhungwa would halt the investigation if I paid him R350 000. I was only too glad to do so and gave Khosa the money."

With all three officials now allegedly milking Rainbow Kwanda, Mashamaite said the company was crippled and that he realised that what was happening was wrong.

"When I heard Tshavhungwa now wanted another R3 million to keep quiet [I] finally said no," he told the court.

Mona was not in court but Soko and Khosa listened to Mashamaite intently.

The two men have been fired from their government jobs and charged with corruption, fraud and contravention of both the Public Service Management Act and the Organised Crime Act. They pleaded not guilty this week.

Mona was fired from City Press for allegedly failing to disclose his business interests and failing to manage conflicts of interest.

Tshavhungwa has meanwhile been jailed for a web of other abuses linked to the Meec and Khosa.

Mashamaite will continue testifying when the trial continues on June 13. Soko and Khosa were released on bail of R20 000 and R50 000 respectively.

The scandal contributed to the downfall of Ndaweni Mahlangu, the former Mpumalanga premier, and is expected to claim further casualties within the provincial government.

With acknowledgements to Walter Ka Nkosi, Justin Arenstein with African Eye News Service and Sunday Independent.