/ 5 February 2010

Disbarred energy official back at work

Disbarred Energy Official Back At Work

A senior energy department official suspended for alleged graft has been reinstated — by a department head herself accused of having conflicting interests — before the disciplinary process has made a finding.

Chief director Martin Masemola was reinstated on January 18 this year, 10 months after being suspended following a forensic report by law firm Bowman Gilfillan.

This alleged that he approved family and friends as contractors for departmental projects and received kickbacks, including land.

The forensic report also alleged that energy director general Nelisiwe Magubane, who reinstated him, had private business interests “that conflict with the department’s business”. It suggested that she ignored allegations against Masemola because of her own conflicted position.

The report also claimed that deputy director general Lambona (Ompi) Aphane ignored the allegations against Masemola and that he owned a company that rendered services to the Blouberg municipality in Limpopo.

A company search this week revealed that Aphane is a director of 19 private companies and Magubane a director of five.

The department, Magubane and Aphane this week rejected the allegations as “spurious”.

“We find [the allegations] both offensive and condescending,” said spokesperson Bheki Khumalo. “This issue — is part and parcel of a smear campaign against the person and character of the DG.”

Khumalo said Masemola was placed on “cautionary suspension”, so that there was no possibility that he could interfere with the investigation, and that this had ended on May 18 last year. Masemola’s disciplinary hearing ended on January 15 this year and Magubane recalled him three days later.

The director general had decided that, as the investigation was over, “there was no need for the department to keep on paying Mr Masemola’s salary while he sits at home”, said Khumalo.

But he disclosed that the disciplinary tribunal has not yet made a finding. The department was awaiting its recommendations and “will carry out the verdict irrespective of the decision”.

The Mail & Guardian reported on Bowman Gilfillan’s investigation in March last year.

Within a day of receiving the M&G‘s questions the former director general, Sandile Nogxina, suspended Masemola — despite the fact that the department had sat on the report for almost four months.

The report says the preliminary probe picked up enough “red flags” to warrant “a full forensic audit into possible corruption, fraud and other irregularities”. A further investigation has been conducted.

Khumalo said Magubane and Aphane had declared their interests annually.

Most of the 19 companies for which Aphane was registered as director were dormant and others did not conflict with his government roles. Khumalo said that of the nine companies of which Magubane was a director, five were dormant and four were in state entities linked to her position as director general.