Former South African Post Office (SAPO) group CEO Maanda Manyatshe is denying allegations that he flouted SAPO tender processes and ignored board decisions in his appointment of Vision Design House to refurbish post offices nationwide.
The allegations, made in a story by the Mail & Guardian (M&G), are based on a criminal case that was instituted by SAPO against Vision and a number of former post office executives, including Manyatshe.
Among the allegations is that the appointment of Vision was irregular. A tender was reportedly issued in 2003, and SAPO received 19 bids. The contract, however, was awarded to Vision, which had not bid for the business.
It is further alleged that Vision misrepresented its black economic empowerment credentials, fraudulently inflated its prices and produced substandard work at the test site in Menlyn Park in Pretoria. However, this week Manyatshe obtained a valuation score which shows that Vision scored 68% on the BEE scorecard.
Last week Manyatshe filed a court application to prevent the M&G from publishing a story outlining the details of the dispute, citing his right to privacy, dignity and reputation. Yesterday however, the Johannesburg High Court dismissed his application, allowing the paper to publish the story today.
Legitimate procurement policies
Responding in a media statement, Manyatshe argues that in the course of his duties as CEO of SAPO he was at various times required to use tender deviation processes, which are part of legitimate procurement policies at SAPO.
Additionally, SAPO's internal audit division, which investigated the tender deviation process with respect to the Vision contract found the deviation justified. "The board, on considering the matter, validated and ratified the process," he says.
Manyatshe says he never drove the appointment of Vision; the company was recommended to him for approval by members of the tender board.
Political brownie points
The allegations were brought against Manyatshe by current SAPO CEO Khutso Mampuele, who claims he did so on the authorisation of SAPO's board. However, Manyatshe claims the documentation provided by SAPO is unsigned and gives no reference to board authorisation.
Bart Henderson, CEO of the South African Institute of Corporate Fraud and Management, adds that none of the allegations give any reference to Manyatshe benefiting financially in any shape or form, directly or indirectly, from the illegal activities he is accused of.
In fact, in the SAPO submissions in the M&G gagging application, Mampuele is at pains to point this out: "It is merely alleged that the motive behind his nefarious behaviour is earning political brownie points amongst certain high-placed politicians."
Manyatshe, who says he has documentation to validate his defence, says his legal team will study yesterday's written judgement and consider his options.
A civil suit brought by Vision against SAPO, after SAPO cancelled the refurbishment contract, is expected to be heard in arbitration court in November.
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