Stuart Hess
Three employees of the Independent Development Trust (IDT) brokered more than R200 000 worth of business deals for their own company while in the employ of the organisation.
This emerged in a Cape High Court application by Bonile Jack, Agnes Nyamande-Pitso and Baby Mogane- Ramahotswa, who are suing the IDT for more than R750 000 which they claim as part of their retrenchment packages.
They were dismissed in March after it was discovered they were involved in a company offering opportunities for underdeveloped communities – a function the IDT also performs.
Court papers point to their involvement in EPA Development, in an apparent breach of their employment contracts with the IDT. Jack says the company’s main objective was “to provide consultancy services, facilitate investment programmes, to engage in investment opportunities and related activities”.
In its responding affidavits, the IDT said EPA’s business deals brokered between May 1997 and February 1998 were in direct conflict with the IDT. EPA worked on the Mpumalanga-Maputo development corridor as part of a consortium hired to assist in the development of the corridor in September 1997. EPA was to be paid R67 600 for its services, including “the supply of data on the human resources base, involving social aspects”.
EPA also entered into an agreement with a Danish “entity” relating to an appraisal of a piggery conducted by Dansa Piggeries in the Free State. Jack and Mogane-Ramahotswa were paid R17 635 to “evaluate the background, scope and implementation plans for the proposed project”.
A cash-flow report from February 28 indicates EPA had an income of R200 000 and expenses of R167 000, of which R94 000 was spent on salaries. The IDT argued that this indicates that Jack, Mogane-Ramahotswa and Nyamande-Pitso were paid salaries by EPA.
EPA also played an active role in an R85-million “rural anti-poverty programme” initiated by the government. This, according to the IDT, was a “fundamental conflict of interest” with their employment contracts.
EPA was incorporated in February 1997 with Jack as a director, Mogane- Ramahotswa, a senior manager and Nyamande-Pitso a programme manager. Jack claims that while he was involved in the establishment of EPA, it essentially remained in the background, and that he, Nyamande-Pitso and Mogane-Ramahotswa were not employed by EPA until March.