There is a growing body of evidence that Gauteng education minister Angie Motshekga and her family benefited financially from the trust that she helped to land a stake in the lucrative provincial pension payout contract. There is also now proof that the trust did not benefit only from the pension deal, but that it also applied for direct government funding when Motshekga was minister of the Gauteng department of social development — and received R750 000 as she vacated that portfolio in May.
The new evidence suggests that Motshekga did not fully disclose the extent of her and her family’s involvement with the Sediba sa Basadi Community Development Trust when the Mail & Guardian broke the story last week. And it seems Motshekga may have serious difficulties explaining away substantial conflict-of-interest charges.
Among other things, the M&G has now confirmed that R50 000 was paid directly into Motshekga’s personal bank account last month.
She claims, however, that she passed it on to an Aids project.
The M&G last week revealed how, while Motshekga was social development minister of Gauteng, she helped Sediba to land a stake in Absa-owned Allpay Gauteng. Allpay is answerable to the social development department in its R170-million-a-year pensions contract.
The M&G also revealed how her husband, former Gauteng premier Mathole Motshekga, had played a key role registering and advising Sediba — a conflict of interest for Angie Motshekga.
Angie Motshekga last week denied in writing that she or her then department had recommended in 2002 that the trust be given a 6% empowerment shareholding in Allpay Gauteng.
Beyond that, Motshekga defended herself on conflict-of-interest charges by saying that she did not personally benefit from Sediba and that she had not known at the time of her husband’s involvement in Sediba.
She has since publicly changed this version, admitting that she had recommended Sediba to Allpay and also that she had asked her husband, who is also a lawyer, to register Sediba.
Motshekga still maintains, however, that there was no personal benefit.
This is questionable, however, in light of new evidence obtained by the M&G.
In August this year Sediba transferred R50 000 to Motshekga’s personal bank account. Motshekga this week admitted to receiving the money, but claimed that she had passed it on to an NGO called Thiboloha Bophelong HIV/Aids Project near Orange Farm.
Motshekga said: “During the month of August 2004, I was approached by women from Thiboloha Bophelong HIV/Aids project who pleaded with me to assist them … They requested me to find someone who can bail them out because their bank account was closed as one of their signatory [sic] to their account passed away and they could not access their funds.”
Motshekga said she linked up the women from Thiboloha Bophelong with Sediba. “Through me, funds were then delivered to this project and were acknowledged by the project. As I now reflect, my willingness to use my account to facilitate the transfer may have seriously compromised me, and that I deeply regret.”
A curious aspect to this explanation is the evidence proferred: a sworn “confirmation letter” from the Aids project acknowledges receipt of the money. It is dated September 3 — before any queries were raised, but stamped by an officer of oaths only on Tuesday — after the M&G had broken the original story and after Allpay commissioned a forensic audit in response to the M&G investigation.
Mpho Madonsela, a secretary with Thiboloha Bophelong, this week confirmed receipt of the money from Motshekga.
Motshekga’s involvement in itself suggests a close relationship between her and the trust that she had empowered in her official capacity as provincial minister.
The fact that Motshekga used her position to influence Allpay to give a stake to Sediba is now common cause. The M&G has documents showing, however, that Sediba had also made an application to the provincial department of social development for funding, while she was the responsible provincial minister.
The department approved R759 000 in funding on May 4 — as Motshekga moved from that portfolio to education. The grant was to purchase office equipment and to pay staff.
Futher increasing the impression of a substantial conflict of interest for Motshekga is that Sediba’s application identified one Ditshego Kekana as book-keeper and administrator and Ben Mohlathe as programme manager. Kekana is Motshekga’s stepdaughter and Mohlathe is her cousin.
Although the department made money available for Kekana’s salary, it seems she did not draw it. Mohlathe, however, told the M&G this week that he received a R10 000 salary from Sediba until he resigned in early September.
He also confirmed that he was related to Motshekga, and said he was recruited to join Sediba by Motshekga. Although Sediba denied it this week, Mohlathe said the reason for his resignation was that he had been presented with a “flawed” employment contract.
There are questions whether Sediba has been properly accountable regarding the departmental grant. Maki Makoa, Sediba’s MD, this week said the grant has so far been used to pay Mohlathe’s salary and that of volunteers.
But the department, now under new minister Bob Mabaso, has raised concerns about Sediba’s “non-compliance” with the Public Finance Management Act.
Welcome Sibisi, the chief community liaison officer in the department, wrote a letter, dated September 9, to Sediba, saying: “You received funding from the department subject to the conditions as stipulated by both the service level agreement and the approval letter.
“The conditions are, amongst others: submission of monthly reports, submission of a list of beneficiaries and the names of staff for the programme etc. It is concerning to note that none of the above-mentioned requirements were met to date.”
Makoa said this was supposed to be fulfilled by Mohlathe. But Mohlathe said he was sidelined by Makoa and others.
Mohlathe claimed that Angie Motshekga was the “brain behind” Sediba.
And he confirmed the continued involvement of Mathole Motshekga, whom he said wanted “to control everything that happens in Sediba”.
Mohlathe gave the M&G an organisational diagram of Sediba, which showed the involvement of Mathole Motshekga’s Kara Heritage Institute as a component of Sediba.
Mathole Motshekga, through Kara, conducted a skills audit for Sediba and was responsible for Sediba’s “moral regeneration programme” as a service provider, he said.
These allegations appear to contradict Mathole Motshekga’s assertion last week that his relationship with Sediba ended when he registered the trust. He refused to comment this week.
Motshekga: The pressure mounts
The political axe is hovering over Gauteng education minister Angie Motshekga, as the African National Congress puts her under pressure to explain why she recommended that a female empowerment group, of which her husband was the director, be given a stake in a pension management deal in 2002 — when she was social development minister in the province, writes Rapule Tabane.
The organisation and provincial government officials held a series of meetings with her where she was asked to explain herself.
Motshekga met provincial secretary David Makhura over the weekend and the ANC officebearers on Wednesday as the organisation pondered whether to take any action.
ANC spokesperson Hope Papo said the organisation had noted the M&G report and would react after completing its internal processes. “We need to satisfy ourselves about the facts before we can comment.”
Motshekga has also requested a meeting with Premier Mbhazima Shilowa to discuss the issue, according to his office.
Shilowa has indicated that he will not act until and unless he has sufficient facts. Shilowa’s spokesperson Thabo Masebe said: “I think it is fair to allow all bodies with the competent authority to assess the matter before the premier can decide on a course of action.”
Further pressure was piled on Motshekga when the Gauteng legislature speaker, Richard Mda-kane, asked the integrity commissioner to investigate whether the code of conduct binding members of the legislature had been violated.
The commissioner will report on his findings to a multiparty privileges and ethics committee before the end of October.
Motshekga’s supporters believe that the screws are being tightened on her by her rivals ahead of the ANC Gauteng conference to be held in November. Motshekga holds the powerful position of ANC deputy chairperson in the province and is chairperson of the women’s league.
The conference will elect new leadership for the ANC in the province and Motshekga was expected to be available for the position of chairperson if the present incumbent, Shilowa, does not contest the post. Shilowa will have completed two terms in the premier’s office after the next election and will have to step down.
But Motshekga’s comrades said the scandal would hamper her career. “It might be what they [her opponents] were waiting for all the time,” said a supporter.