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Public protector to probe Pule

Farzana Rasool
By Farzana Rasool, ITWeb IT in Government Editor.
Johannesburg, 11 Sept 2012

Public protector Thuli Madonsela will investigate the potential mismanagement of ICT Indaba funds, and communications minister Dina Pule's alleged conflict of interest.

Democratic Alliance shadow communications minister Marian Shinn has been calling for Madonsela to supplement the auditor-general's inquiry into the matter, as she claims the initial probe was insufficient.

Shinn wrote to the public protector in July and Madonsela said this was only forwarded to her by the investigator on Thursday.

She added that she met with the AG's office on Friday and, based on the briefing she received, which included the scope and limitations of the audit process, has decided to proceed with the investigation.

Personal links

The Department of Communications (DOC) hosted the inaugural indaba at the beginning of June. Media reports that month said millions in sponsorship fees were drawn from the account of the indaba's event organiser by a man alleged to be romantically linked to Pule, after she lobbied telecoms companies to sponsor millions for the event.

Allegedly, millions paid in sponsorships by Telkom, MTN and Vodacom were withdrawn within days by Phosane Mngqibisa, whose company, Khemano, was subcontracted for the indaba by Carol Bouwer Productions (CBP).

Media reports also say Khemano only got the contract due to Phosane's personal links to Pule, and CBP was forced to make him a joint signatory on its account.

Reports also emerged this month saying Phosane used sponsorship money to buy designer shoes for Pule.

'Sorry saga'

Shinn says Madonsela's investigation will supplement the inquiry instigated via Parliament's Ethics and Members' Interest Committee for a probe into the potential ethical issues of Pule's conduct in the outsourcing of the organisation of the event.

“The fallout of how R25.7 million was raised from sponsors for the event and was seemingly withdrawn from the event's project manager Carol Bouwer's business bank account by Mngqibisa has been the focus of media attention since mid-June. There are almost weekly revelations of how money has been spent lavishly on items and trips that have tenuous links to the ICT Indaba and more to do with a jet-setting lifestyle.”

The shadow minister says the hope is that the public protector's investigation will lift the lid on the extent of Pule's knowledge and influence over the organisation of the ICT Indaba.

“We need to know whether the minister abused her position of authority over companies in the ICT industry to enrich a close personal friend. This sorry saga must be thoroughly investigated if industry sponsors are to trust that government departments will spend their money honestly and wisely.”

Criminal suits

The AG conducted an investigation into the R10 million committed to the indaba by the department and found no improper conduct. Shinn said the AG's investigation was insufficient as it did not cover Pule's alleged conflict of interest regarding her romantic link to a sub-contractor for the indaba.

Themba Nyathi, human resources executive officer at MTN SA, says the operator last month hired legal firm Werksmans to audit the sponsorship money donated for the ICT Indaba.

The firm has not produced a report yet. “At this moment these are allegations; hence MTN is investigating through Werksmans Attorneys. If the allegations that the money was abused [are true] then naturally MTN would be disappointed and legal action would follow to recover the funds. Criminal and civil suits will follow if the forensic investigation proves that funds were abused.”

Muddy nepotism

Allegations of nepotism against Pule are nothing more than a mud-slinging exercise, her department has said previously. Apart from this, the DOC has chosen to remain silent on the matter, as has Pule.

However, it did say Pule believes it is important that the ICT Indaba be seen for what it was - an opportunity for SA to create a positive legacy for the continent and its people.

It adds that the event attracted R16.3 million worth of positive global publicity, and has helped position SA as being at the forefront of driving access to ICT in Africa.

Disclaimer: ITWeb was one of several media partners for the event.

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