JSE-listed Telkom, which was a gold sponsor at the recent ICT Indaba, is pondering appointing its own auditors to probe whether the R5.7 million sponsorship fee it paid was misappropriated.
Media reports in the middle of last month alleged that R36 million in sponsorship fees for the inaugural ICT Indaba were withdrawn from the event organiser's account by a man alleged to be romantically linked to communications minister Dina Pule, after she lobbied telecoms companies to sponsor millions for the event.
The auditor-general's office is investigating the allegations that the money was allegedly misappropriated. The office's probe started on 18 June and is expected to be completed by about next Wednesday.
Media reports say millions paid in sponsorships by Telkom, MTN and Vodacom were withdrawn within days by Phosane Mngqibisa, whose company, Khemano, was subcontracted for the indaba.
Carol Bouwer Productions was appointed by the department to put the event together. Bouwer confirmed to the Sunday Times that Mngqibisa was a second signatory to her company bank account. Bouwer hired Mngqibisa's company to handle the event management part of the indaba.
Seeking answers
Telkom says the allegations are “disturbing” and it has made enquiries with Carol Bouwer Productions, but has, as yet, to receive a satisfactory response. Telkom believes that “Carol Bouwer should deal with the enquiries regarding this matter transparently and expeditiously. Failing which, Telkom will have no choice but to appoint its own auditors”.
governance followed”.
Meanwhile, CFO Jacques Schindehutte has started an internal review to evaluate the company's internal processes and his report will be considered by the audit and risk committee. The fixed-line operator will also cooperate with the auditor-general's investigation.
Telkom's decision to sponsor the inaugural event was in alignment with its business imperatives and exposure that the event would afford its brand, the company says.
Vodacom's chief officer of corporate affairs, Maya Makanjee, says the company has asked for more information from Carol Bouwer Productions around what its sponsorship fee was spent on.
Vodacom signed up as a gold sponsor and invested R5 million to receive marketing and branding rights, public relations rights, radio and TV advertising, accommodation and event tickets, and post-event media inserts, says Makanjee.
Makanjee says the group will not comment further until it has “sufficient information”.
Vodacom saw the indaba as a landmark event to discuss the ICT agenda for the nation and the continent. Makanjee says the company was happy to agree to the invitation from the department to be a co-sponsor of the event as it is a “leading player in the mobile telecommunications industry in SA and Africa”.
Waiting games
The department's spokesman, Siya Qoza, says it is waiting for a close out report, which would include audited financials, from the service provider, Carol Bouwer Productions, which should be completed at the end of July.
Qoza says the DOC noted the media reports around the ICT and requested the auditor-general to look into the matter. The auditor-general started looking into the issue on 18 June and indicated that it will take about a month to complete the work.
The department did not respond to a request to respond to allegations around the minister's relationship with Mngqibisa, what the sponsorship's intended use was, the allegations of misappropriation or whether Pule lobbied the companies to take part as sponsors.
Carol Bouwer Productions did not respond to a request logged on its site, the only apparent way of contacting the firm through its portal. MTN indicated it would respond, but failed to do so. MTN reportedly sponsored R10 million for the indaba.
Disclaimer: ITWeb was one of several media partners for the event.
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