Citizen Online
Friday, December 01, 2006
JOHANNESBURG - High-profile South Africans with ANC links, including President Thabo Mbeki's political adviser, own the controversial IT company Sondolo, the Beeld newspaper reported on Thursday.
Beeld reported it had recently "exposed" the company for tender irregularities at the Department of Correctional Services (DCS).
According to the report Sondolo IT, which is part of the Bosasa group of companies, wrote large parts of a multi-million rand security tender that was subsequently awarded to them by the DCS for R237 million.
On Thursday the newspaper reported on those who own shares in Sondolo IT.
They include: Titus Mafolo, political adviser to Mbeki, former ANC MP and chairman of the controversial Native Club; Ronnie Mamoepa, Foreign Affairs spokesperson; Gavin Watson, CEO of Bosasa and long-standing acquaintance of commissioner Linda Mti, the outgoing prisons chief, and Seth Phalatse, former chairman of the Strategic Fuel Fund who resigned after allegations of corruption.
Phalatse's wife, Lorato, is head of Mbeki's office. None of the four replied to Beeld's queries into the matter, the report said.
"Beeld wanted to know why the entities, through which they own shares, decided to invest in the unknown, newly formed Sondolo IT," the report said.
The front-page article does not contain reaction on the issue from the correctional services department.
Sondolo IT, since its registration on February 10, 2005 has been awarded tenders of almost R500m by the DCS, Beeld reported.
The shares in the company are divided between Bosasa Operations (40 percent), Kgwerano Financial Services (25 percent), Bancar Investment Holdings (25 percent) and the non-profit Bosasa Youth Development Foundation (10 percent).
The person with the most Sondolo IT shares (13.32 percent) is Carol Mkele, a businesswoman from Port Elizabeth.
"Mkele has a long-standing relationship with Watson and his family," the report said.
Mkele, who is also a director of Sondolo IT and other Bosasa companies, did not want to comment, Beeld said. - Sapa.