Evidence wa ka Ngobeni
The head of Sanco Investment Holdings (SIH), the investment arm of the South African National Civics Organisation (Sanco), has accused the president of Sanco of conspiring with a former employee to destroy the company.
Moses Mayekiso, the managing director of SIH, and Sanco president Mlungisi Hlongwane are both contesting the presidency of the organisation at its third national conference in Johannesburg this weekend. President Thabo Mbeki will deliver the keynote address at the gathering.
Mayekiso has accused Hlongwane of using former SIH financial manager Joanna Kruis to “assassinate his character and launch a vicious attack against the investment company”. Mayekiso said Hlongwane backed Kruis, who SIH has accused of stealing computers, documents and cars, to the detriment of the investment company.
Hlongwane dismissed Mayekiso’s allegations as “absurd”. He said Mayekiso was using claims of character assassination to hide behind his failure to account for irregularities and mismanagement at SIH.
The accusation against Hlongwane is contained in a letter Mayekiso sent to Sanco general secretary Mbongeni Ngubeni. Mayekiso was responding to Ngubeni’s request for SIH’s status report ahead of the national conference.
Last week the Mail & Guardian reported that SIH lost track of assets and investments worth R80-million. Mayekiso said the company has lost investment records, financial reports and cash flow statements after Kruis “looted” their offices.
SIH, which was formed in 1996 as an empowerment wing of Sanco, is linked to Sanco through the Sanco Development Trust, on whose board Mayekiso, Hlongwene and other Sanco executives sit.
Last week Mayekiso lashed at Hlongwane accusing him of “conspiring” with Kruis “to maliciously attack the company [SIH] and I [Mayekiso]” ahead of the national conference.
Sanco will be discussing five major proposals at their conference that they hope will define the political role of the the national organisation.
These proposals include the formation of a political party, acting as a watchdog and becoming a development agency or a revolutionary social movement.
Kruis has denied stealing SIH documents, citing power struggles within Sanco as the reason for the accusations. Last week Mayekiso insisted a criminal charge of theft was laid against her, but withdrawn when she agreed to return the property.
Mayekiso’s letter to Ngubeni follows the M&G article about the state of affairs at SIH. Ngubeni confirmed that he has received Mayekiso’s letter.
In the letter Mayekiso wrote: “I have started composing and compiling the report, but due to [a] recent evil electioneering campaign that is vicious, malicious and hypocritical from some elements in the national office bearers of Sanco aiming at destroying SIH and my character, I am unable to protect my fiduciary duties … therefore, unfortunately I cannot give you a detailed report.”
Mayekiso has organised a workshop in June at which he says a detailed report on the activities of SIH will be submitted.
“This character assassination … is so vile that these national office bearers have stooped so low to make a deal with a thief and supported the court case of Kruis,” he said.
SIH has since agreed to pay Kruis about R80?000 in compensation in a Commission for Conciliation, Mediation and Arbitration (CCMA) hearing. “During … the CCMA [hearing], Kruis produced an affidavit statement from one of the directors of SIH and Sanco national office bearers [Hlongwane], which is supporting her,” Mayekiso said in the letter.
SIH’s argument at the CCMA was that Kruis had “absconded from work” in January last year but had taken office equipment in December 1999.
Hlongwane’s letter to the CCMA declares that SIH did not have a disciplinary hearing against Kruis and that she had not absconded from her duties at SIH. This letter, says Mayekiso, caused “SIH to lose the proceedings and [led to it] settling with Kruis”.
Hlongwane denied this. “I disagreed that Kruis absconded from work. At the time they [SIH] say she absconded, their offices were closed and indeed there was no proper disciplinary inquiry against her. That’s what happened and that is what I said,” Hlongwane said, adding Mayekiso was hiding behind irregularities at SIH.
“We have not had a board meeting in two years [and] no audit statements since the 1997/98 one. Mayekiso must account for the ineffectiveness at SIH because he even removed bank accounts to his lawyers without consulting with the board. I am talking on behalf of the board members. Mayekiso has to account for the poor performance of SIH,” Hlongwane said.
“There is no connection whatsoever [with] the case between SIH and Kruis [and] the national conference. This whole thing has nothing to do with Mayekiso’s candidacy. If I stand for the elections, as I will because of pressures from comrades, he [Mayekiso] can’t beat me. The only thing he can do is to drag my name through the mud,” Hlongwane said.
“How would I as president of Sanco, which owns 74% of SIH, be involved in a malicious attack on the company my organisation owns?”
Mayekiso said Hlongwane was against him because he had refused to pay salaries, debt and Sanco’s office rental.
Sanco does not have offices after it failed to pay for plush offices in Carlton Towers, Johannesburg.
“They used to come in now and then looking for money. I refused because they were not bringing anything of value to SIH. They failed as board members. They think that SIH is their structure. There are other shareholders and I had to protect their interest as well,” Mayekiso said.
“They always wanted SIH to pay for their rubbish and stupid depts. I moved the account to our lawyers because I wanted to protect SIH from being looted financially by these people.”