/ 14 December 2001

Ministers odd debt rescue offer

Nawaal Deane The Office of the President has become embroiled in a dispute over outstanding debts of the South African Chapter of the African Renaissance (Sacar), a supposedly independent body formed to change negative perceptions of the continent. An advertising and events-management firm, Vukani Ma Afrika, has accused Sacar of dodging the payment of accounts originally amounting to about R1,4-million. Vukani says Essop Pahad, Minister in the Office of the President, then promised to help raise the money, but that nothing has yet come of it. Vukani director Joe Siever has questioned why the presidents office should be fund-raising to settle debts incurred by Sacar, which he says has received sponsorships from large corporations including Mercedes-Benz, BMW and Standard Bank. Sacar was set up in 1999 as an independent body linked to the African Renaissance Institute. It was formed to spearhead a social movement for the “reawakening” of the African continent. Sacar is headed by Thami Mazwai, director of Mafube Publishing, and includes heavyweight executive members such as African National Congress MP Wally Serote and Peter Vundla, executive deputy chairperson of the African Merchant Bank. The outstanding debts are up to two years old. It all began in September 1999 when, Siever says, Vukani signed a contract with Sacar after it put forward a detailed advertising and event-management proposal to launch Sacar at a lavish Ceasars Casino bash in Johannesburg (cancelled at the 11th hour) and plan a series of further launches. Mazwai and Sacar agreed to pay 50%, or about R700 000, upfront. But, says Siever, only R150 000 was forthcoming and a promise to settle the rest of the upfront payment within a week was not honoured. Siever says the contract stated the full R1,4-million fees of R255 000 to Vukani and the rest for subcontractors would be settled by April last year. This did not happen. Siever charges that despite regular meetings with Sacar, promises to pay remained empty. Last year Dinky Maropane, Sievers co-director in Vukani, approached President Thabo Mbekis legal adviser, advocate Mojanku Gumbi, who referred the matter to Pahad. A meeting was held between Vukani and Mazwai where Pahad acting as facilitator reviewed the accounts. “Mazwai once again undertook that the accounts would be paid,” says Siever. When nothing came of this, Vukani sued Sacar. At the appointed court date early this year Mazwai failed to turn up sending a doctors note instead. In a settlement agreement Sacar agreed to pay Vukanis outstanding R225 000 in three cheques dated between September 30 and November 30. The other creditors would be paid directly. But, Siever says, these deadlines have also been missed. On December 1 Siever was told that there was a cheque for Vukani at either Sacars or the presidents office. After enquiries he eventually got a call from Pahad, who asked for another three weeks extension. “He said that he was definitely going to raise the money from contacts and I need to give him a three-week extension because he cannot discuss finances in Ramadaan.” Siever says he thought it strange that the presidents office would have to raise money for Sacar. “What struck me is why on earth the minister of the presidents office is raising the money.” Siever says Pahad was initially “syrupy” but the discussion became heated when Siever threatened to go to the press. Pahad, he says, said: “Im not frightened of the press.” Pahad refused to comment on the allegations. Mazwai did not comment after numerous attempts to reach him.