Meshack Mabogoane
National Sorghum Breweries, (NSB), South Africa’s first, major black economic empowerment company, is again at the centre of controversy.
The fatal shooting recently of top executive Khathuthseloe Mutshekwane has revived the doubts that surrounded NSB last year. As a flagship of black empowerment, its fate has serious political and business implications as it is closely linked with the hopes and fears of mainstream black enterprise prospects.
The death of Mutshekwane follows an incident at Jabula Foods, in Springs, in which he intervened to stop the alleged irregular shipment of goods worth R3-million from the ailing and now closed plant.
The case involved Sipho Ndzeku, a son in law of NSB chief executive, Mohale Mahanyele, acting on behalf of a consortium of Pretoria businessmen. The charges against Ndzeku have since been withdrawn due to a “misunderstanding” and, according to a police spokesman, instructions from the company.
This latest incident is just the tip of the iceberg of corruption with which NSB has been grappling. A clean- up operation has been underway to deal with a resurgence of thefts of cheques, stock, vehicles and machinery. Senior staff members have either been suspended or charged. And now, with Mutshekwane’s death, these difficulties overshadow the scams already revealed a year ago.
Mushekwane, a close confidant of Mahanyele and a veteran of NSB management, was responsible for fleet management and procurement. This position, and his reputation as a diligent executive committed to restoring the image of NSB in the wake of its earlier mismanagement problems, made him an obstacle and so put him in the firing line.
His intervention in the Jabula incident, in which invoices were allegedly not issued, is the highest price he and NSB have had to pay in their pursuit of sound business practices.
A struggle for control of NSB’s resources, through shady deals and self-enrichment, in which both insiders and potential suppliers are involved, is at the bottom of NSB’s misfortunes.
There appears to be a concerted drive to milk NSB, a company that started with substantial assets. With a huge distribution network and sub-contracting prospects, it is fertile ground for “influences” that involve jockeying for work. Group finance executive, Chris Venter, has publicly admitted that such a struggle exists and that Mutshekwane may have been a victim of disputes in which “disenchanted” clients could have been involved.