Monday, July 23, 2007

CORRUPTION TRIAL ROCKS MPUMALANGA

This is the post that should have been done on 19th July.


My, my, my - I can't say that I am surprised! Having watched "derailed" on TV last night and seeing how this poor man was roped and scammed into paying out money that was supposed to be for his daughter - I was amazed at how easily people get into impossible situations and then how easily they dig themselves further and further into the mess! What a mess.

The first time they ask for money is when the light bulb should go on, and when the coffee should start perculating furiously. This is the time to make public whatever it is that you are hiding and come clean - the mess is a lot easier to clean up at this stage and will also leave you without the guilt and bankrupt!

Corruption trial rocks Mpumalanga
April 29 2007 at 11:27AM
By Walter Ka Nkosi and Justin Arenstein


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. - African Eye News Service

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