Mungo Soggot
Minister of Trade and Industry Alec Erwin has denounced a Mail & Guardian report two weeks ago that his officials demanded cash cheques from companies attending a banquet.
In a letter to the M&G, Erwin says: “No Department of Trade and Industry (DTI) official has ever asked for cash cheque payments.” He has laid a complaint with the press ombudsman.
The M&G is in possession of a signed letter from a company confirming that it was asked to pay for a table at the banquet with a cash cheque.
Posing as an interested company, the M&G also spoke to the DTI official handling queries related to the dinner about the possibility of buying a table. The official, Roy Moathlodi, asked for a cash cheque and said other companies had already paid with cash cheques.
The banquet, which was held to present awards to the country’s top exporters, took place on November 26.
As the verbatim quotes opposite show, DTI officials failed to satisfactorily explain why they were asking for cash cheques and could not say where the money they raised was going.
The M&G informed Moathlodi’s seniors it had posed as a company. Moathlodi declined to comment on his superiors’s versions, saying he had “to talk to my principals”
In previous years the dinner has been free, but this year the department appears to have charged R10 000 per table for extra guests invited by the winners.
This decision on the part of the department appears to have been taken at the 11th hour and without the knowledge of the ministry.
Erwin’s adviser, Cobs Pillay, told the M&G before the article appeared: “To the best of my knowledge, and I have been in the department two years, no one pays to come to this dinner.”
After the article was published, a Cape- based company, Consani Engineering, wrote to the M&G, giving an account of its dealings with the department.
“Consani was then told that we should send a cheque for R8 000 [R10 000 minus R2 000 for two free tickets] to the DTI before the invitations would be processed.
“Furthermore we were told to issue a cash cheque as the DTI were unsure which account would be credited.”
Consani said “it had been alleged” that a letter it had written to the department to complain about the request for a cash cheque had been used by the M&G.
The company, which won an award at the dinner, did not reply to an M&G inquiry as to who had alleged its letter had been quoted in the article.
What they said …
`No DTI official has ever asked for cash cheque payments.’ – Minister of Trade and Industry Alec Erwin
`We were told to issue a cash cheque as the DTI were unsure which account would be credited.’ – Consani, a company which wanted a table
`And then the people that have paid me so far, the companies that have paid me so far, I have requested them that they must give me a cash cheque. So that as soon as we establish a fund for that, those cheques will definitely go into that account. – Roy Moathlodi, communications, DTI, approached by the M&G posing as a company
`I am afraid I am not directly involved in the management of the banquet so I can’t really comment on what you say. Try speaking to Themba Mhlongu. No … Rubushe.’
`No cheques have been paid or received. And we have asked people to pay those cheques into the … into the department. And from the department it would be paid into the appropriate government account. So that’s the normal procedure. But to date no cheques have been paid by any applicant for such a table.’ – Faizel Ismael, DTI chief director of export and investment promotion
`What! I don’t think you can go the route of saying the cheques can be written cash. The thing is I am not directly involved in this thing.’ – Themba Rubushe, communications chief, DTI
M&G: `But let’s say that you are buying the seats, the question is who do you make the cheque out to?’
Rubushe: `They were supposed to have settled that whole thing now. The whole thing was aimed at. I think it was going to end up towards the structures of what do you call this … job summit. Having to do with that in the final end. The thing is Mungo, I am not directly involved in this thing. I just get reports because Roy works under me. But I am not directly involved because I am doing other things. I think the picture I got was that the money is going to end up there. But not the Umsombonvu fund.’
`Are receipts being issued for these cheques?’ – Zav Rustomjee, DTI director general
Conversation with Roy Moathlodi
Roy Moathlodi: Hi, Roy here.
Mail & Guardian: Hi, is that Mr Moathlodi?
Speaking.
Hi, my name is Jon Scott. I am calling from an engineering company in Vereeniging.
Right.
Apparently you are the person to come to in connection with the state president’s award banquet next week I think …
Right.
Is there any chance of getting a table there, or is it all sold out?
Um, Yes I can be able to do something about that.
Yah.
For a table. Which company is that?
Sorry?
Which company is that?
It’s called SC Engineering.
SC?
Yes, because we’ve got some of our partners coming in from Sweden.
Alright …
… And wanted four of them to come along.
Alright.
Is there any chance of getting tickets to it?
Alright. You can sponsor a table that seats about 10 people. That means five couples. And then that will cost you about R20 000. No R10 000
Yes.
And then you will be allowed to take material that you have for export week.
And who must my company make the cheque out to?
Alright, um. I will give you. Just a moment. Because this money is gonna be is going to the fund, it is not about to go into DTI.
Yes.
And then the people that have paid me so far, the companies that have paid me so far I have requested them that they must give me a cash cheque.
OK.
So that as soon as we establish a fund for that, those cheques will definitely go into that account.
Got it.
What I will do, I will just. Let me take your fax number.
OK.
Number?
Sorry?
Your fax number?
Yah, it’s 016 622 3442.
[repeat number after M&G] Attention?
Mr Scott.
Alright. And the company?
And I’ll come back to you tomorrow morning to confirm that. But that sounds excellent. Thank you very much.
Alright Mr Scott, what I am going to do is that in 10 minutes time I am going to fax you that and then what you need to then is that you need to fill that out and then you get in touch with me and then after that we will require the payment.
Absolutely. And then will you send us the tickets after that?
We will send the tickets after you. We can either um forward them. Alright
By when do you need the cheque?
Um. The cheque. It will be … as soon as possible
End conversation