While top executives at the SABC attack the media for biased reporting, its own house in not in order, report Ivor Powell, Wally Mbhele and Jubie Matlou
New irregularities have come to light involving the SABC managers named in the forensic audit by accounting firm KPMG – the basis for an investigation announced last week by SABC chief executive Reverend Hawu Mbatha.
The four executives named in the KPMG report are chief executive (television Molefe Mokgatle, group communications chief Thaninga Shope (formerly channel head of SABC 2), head of marketing Prince Phaweni, and legal adviser Emmanuel Mohomane.
The KPMG report calls for the suspension of those named in the report while investigations are in process.
The four have yet to be named by the SABC, despite the fact that the irregularities identified in the KPMG report involve millions of rands in public money.
But far from being suspended, Mokgatle has been instrumental in recent weeks in a key appointment that could blow up into yet another scandal – that of new SABC 2 channel head Tebatso Sehloho.
Sources inside the SABC told the Mail & Guardian that Sehloho’s name was not on a shortlist of candidates drawn up after interviews last month for the post.
The shortlist had a candidate currently employed by a major parastatal and two internal SABC candidates. One of these was Phaweni.
Phaweni’s application for the post was blocked by human resources chief Cecilia Khuzwayo on the grounds that he was under investigation in connection with the KPMG audit. Phaweni is Mokgatle’s brother-in- law.
It was then that the job was given – with Mokgatle centrally involved – to Sehloho. He was formerly the head of consumer research on the SABC account in the advertising company, The Agency.
The Agency was also named in the KPMG report as allegedly having been connected with irregular practices, sources confirmed. Among other issues identified in the report as requiring further investigation is the awarding of marketing contracts to The Agency in excess of limits specified in the SABC’s code of business. As a public corporation the SABC is obliged to spread its business across the industry.
After The Agency was shortlisted as one of six companies to share SABC work in 1996, it has increasingly dominated the SABC’s accounts. Marketing and advertising contracts have not been put out to tender in that time.
For the most part, the allegations contained in the KPMG report centre on irregularities in the commissioning of SABC television programming. One of the alleged irregularities involves both Phaweni and Mokgatle in commissioning an Aids awareness programme from a foundation headed by a well-known motivational speaker. The name of the foundation is known to the M&G.
Though a cheque for R405 463,80 (including VAT) was paid to the foundation in May 1998 with the signatures of Phaweni and Mokgatle, the commissioned work never materialised and the money was never recovered.
Far larger sums were involved in another debacle which resulted in the axing of SABC1 commissioning chief Marcel Jackson earlier this year. The KPMG report calls for further investigations into the affair, which involved the purchasing of overseas programming at exorbitant rates under suspicious circumstances – to the extent that the SABC’s R200-million commissioning budget was so depleted that a moratorium had to be called on the commissioning of local programming.
One of the programme purchases cited in the report is that of the series Dream Team, bought from BSkyB for R4,2-million on behalf of SABC1. That is more than double the market price for the series, according to media marketing insiders.
Similar queries arose in connection with another SABC1 purchase, of a series called The Young Professionals – where an even larger sum was paid.
Mohomane is allegedly involved in the investigation because his signature appears on documents authorising programme purchases. Insiders note that the sums involved exceed the limits that Mohomane was allowed to authorise – something they say the head of his department as well as other financial controllers should have picked up.
The KPMG report – in its final form – finds no proof of illegality in commissioning practices, nor of kickbacks having been accepted, though these are not ruled out either.
The KPMG findings focus on alleged failures to follow prescribed commissioning procedures. This followed the blocking of new, stricter commissioning procedures which would have required board members as well as the director of programming, channel heads and senior schedulers all to authorise the purchase of expensive programmes.
With the new procedures never implemented, commissioning was left in Mokgatle’s hands.
Meanwhile, television production house Urban Brew, another outside company named in connection with irregularities in the KPMG report, was recently awarded a major contract for an SABC3 talk show. The report recommends further investigation into the contacts between Urban Brew and senior SABC executives.
Urban Brew is a subsidiary of the media division of New Africa Investment Limited (Nail), whose chair is former SABC chief executive Zwelakhe Sisulu. Urban Brew was awarded the SABC2 breakfast show contract at a time when Sisulu was still SABC chief executive, but was already poised to join Nail.
Requests for SABC comment were referred to Mokgatle’s office this week. However, at the time of going to press he had not responded to the M&G.
Jannie Ngwale, managing director of The Agency, said he was not aware his company had been implicated in the KPMG report, which he has not seen. ”Our integrity is enshrined in the manner in which we do business with our clients,” he said.
At a meeting of the SABC’s governing board this week, both outgoing chair Paulus Zulu and chief Mbatha launched bitter attacks on the print media – with Mbatha accusing the newspapers of still being ”owned by the old regime” and being ”opposed to transformation”. The meeting was meant to inaugurate the SABC’s new board announced last month.
The outbursts followed the publication of a full-page advertisement taken out by the SABC in Sunday newspapers, under the headline ”SABC is a great success”, where the M&G, specifically, was accused of ”premature and hysterical” reporting. The advertisements cost R200 000.
After a Cabinet meeting on Wednesday the old board’s term of office was extended for three months. This will mean that the SABC’s new budgets, many of which affect the next five years of operation, will be overseen by the SABC old guard.
Meanwhile, Mbatha moved shortly before the announcement of the new SABC board to have the governing body extend his own and other senior contracts for another five years.
Under the new Broadcasting Act, promulgated this year, new group executive structures could mean he would have to reapply for his job.