The cash-strapped South African National Civics Organisation (Sanco) and its investment arm, Sanco Investment Holdings (SIH), have become the stage for a bizarre series of corruption allegations and counterclaims of political manoeuvring.
In the Byzantine wrangle that has torn the African National Congress-linked civics movement, Sanco president Mlungisi Hlongwane has been pitted against former secretary general Dan Mofokeng and former treasurer Godfrey Jack.
Mofokeng and Jack quit last week over Sanco’s alleged unwillingness to deal with claims of corruption, self-enrichment and unauthorised share transactions.
Hlongwane has hit back, accusing Mofokeng, a former Gauteng housing MEC, of being behind a ploy to realign Sanco with political opponents of the ANC and pursuing ”character assassination through the media”.
Former Sanco president and SIH managing director Moses Mayekiso has dismissed the corruption claims, saying SIH had cleared all its debts through authorised transactions by the time he resigned his post in July last year. But he appealed to Sanco leaders and the tripartite alliance to clean up the civics movement.
”It’s a pity that such a strong organisation that contributed to the liberation we have today has to be used for political point-scoring. All those allegations, there’s no substance,” Mayekiso said. ”Sanco has become an albatross. It is bumbling left and right. Something has to be done politically.”
Sanco is set to embark on a damage limitation drive with its business partners and the tripartite alliance over claims that a R1,3-million rescue package provided by the ANC in 1998 was used for self-enrichment. The ANC and Sanco say cash was never handed over and the ANC merely directed Sanco to ”friendly donors”.
At a special meeting last Wednesday, Sanco’s national executive committee (NEC) asked provincial representatives to probe the allegations.
In a clear hit at Jack, who is SIH chairperson, the national executive also suspended the SIH board to prevent ”interference” in the probe.
”You can’t wage a political campaign through SIH,” said Hlongwane.
Simultaneously an independent inquiry into Sanco and SIH’s finances — initiated by Jack — is apparently near completion. The probe was apparently funded through a share swap with a third party, approved by the investment company’s board on May 9.
Hlongwane has questioned the terms of reference of the independent investigation. Jack dismissed the NEC initiative as ”the NEC investigating itself”.
The special meeting brought tensions to a head. Mofokeng and Jack both verbally resigned, to be told hours later that they had been suspended. They then resigned in writing with immediate effect.
Sanco is set to pursue disciplinary charges against the two.
Fuelling the spat was the break-in and theft of furniture at Sanco’s Johannesburg head office last Saturday. Criminal charges were laid and an internal probe is under way to determine whether documents were removed.
In 1996 Sanco swapped the streets for the boardroom with the launch of its empowerment company. But by 1997 the lines between the parent organisation and SIH had blurred and that year’s congress was told of a R1,5-million debt incurred by the civics movement.
”Some of us thought Moses [Mayekiso] was crazy, but when we came in we found he was right,” said Mofokeng of his and Jack’s efforts since February to clean up Sanco.
Mofokeng said Sanco was poor, but that some got rich over a very short period of time. ”People are protected to do wrong. The denials … the bank cheques, the paper trails tell a different story.”
”I have nothing to hide,” countered Hlongwane. He said financial shenanigans had forced him to engage personal attorneys to set aside a summary judgement obtained by African Bank against him. Apparently his were the only traceable contact details.
Meanwhile, Sanco will remain without a permanent secretary general or treasurer until its NEC meeting in mid-October. The two vacancies will be filled by appointment until the next congress in April 2005.