Police probe Vision Design contract

By Damaria Senne, ITWeb senior journalist

Johannesburg, 20 Sept 2006

Following the emergence of prima facie evidence that a number of people, including former executives of the South African Post Office (SAPO), benefited from serious irregularities pertaining to suspect/onerous contracts, SAPO handed the matter relating to Vision Design House to the Public Services Commission, says spokesman Twiggs Xiphu.

Vision Design House, which signed a contract to provide a new look for SAPO during MTN SA MD Maanda Manyatshe's tenure as SAPO group CEO, was among the 13 companies whose contracts were cancelled in 2005, when current CEO Khutso Mampuele took over the reins.

Later in 2005, the matter was handed to the Scorpions before being passed on to the South African Police Services in February 2006 for further investigation and possible criminal prosecution, he says.

"The conduct of some of these former executives constitutes a breach of their fiduciary duties and an act of financial misconduct, which is a criminal offence in terms of the Public Finance Management Act," Xiphu says.

"Vision Design House has sued the Post Office. This claim is being defended by the Post Office."

Xiphu could not provide the names of former SAPO executives who were facing possible criminal prosecution. However, Bart Henderson, CEO of the South African Institute of Corporate Fraud and Management, argues that if SAPO has a strong case against the defendants, they should have been charged.

He also questions the timing of the emergence in the media of the story about Manyatshe - before the arbitration between SAPO and Vision Design House is heard. He argues that Manyatshe is being tried in the media rather than being allowed his day in court.

"When Manyatshe left SAPO in October 2004, the Vision Design House spend was R26 million," he says. "Following allegations of impropriety, which were investigated by the SAPO board, a further R56 million spend was authorised, taking the Vision Design House spend to over R80 million.

"This matter would never have seen the light of day if Vision Design House went quietly and decided not to seek arbitrated recourse in the High Court," he says.

Vision Design House was unable to provide comment at the time of publication.