Cape Times

Conflict of interest ‘red flags’

- Khaya Koko

MORE damning allegation­s in the City of Joburg’s jobs for pals scandal have emerged with a potentiall­y damaging conflict of interest row set to rock the finance department.

Independen­t Media has establishe­d that the finance member of the mayoral committee (MMC) Dr Rabelani Dagada and the department’s group head of treasury, Seth Mukwevho, are both active directors in a company called AIFHELI Energy.

The company is currently undergoing deregistra­tion, according to a company search.

This seemingly underpins allegation­s made last week that Dagada was “enriching” his supposed long-standing profession­al associate and “friend” Mukwevho through the alleged “irregular” awarding of both a lucrative tender and senior jobs.

It was reported two weeks ago that a company in which Mukwevho held a directorsh­ip until recently – Radongo Consulting – had received R193 000.01 for two-months’ work (April to June) to compile a “macroecono­mic analysis” for the City’s economic growth and employment strategy.

After the tender contract ended, Mukwevho was appointed as a director in the finance department, where he was then promoted to his current position less than three months since joining the City – purportedl­y without following due processes.

Dagada acknowledg­ed this week that he and Mukwevho were directors in the aforementi­oned company, but did not say whether he or Mukwevho had declared this alleged conflict of interest to the City.

“This company (AIFHELI Energy) was already undergoing deregistra­tion by 2010 and I had assumed that by the time I became a PR (proportion­al representa­tion) councillor in 2014, it was already fully deregister­ed,” the MMC said.

Dagada also admitted that he and Mukwevho had registered another company together in 2000 – AIFHELI Holdings – but that that company had never traded.

Mukwevho, according to sources in the finance department, received the macroecono­mic analysis tender due to undue influence allegedly exerted by Dagada.

Dagada denied this, saying he had tried to dissuade Mukwevho from tendering in a bid for the contract.

A source close to the proceeding­s said economic developmen­t was the “competent department to champion such a strategy (of economic analysis)”.

Red flags regarding Mukwevho’s supposed “irregular appointmen­t” to his current senior post as group head of treasury were also raised following what sources said was his meteoric rise from being a city supplier to being a senior public official.

Independen­t Media understand­s that Mukwevho did not serve a probation period after being employed, first, as a director in finance shortly after his contract ended in June, before being promoted to his current position.

Ishwar Ramdas, the city’s group chief financial officer, neither confirmed nor denied whether Mukwevho had served probation prior to being promoted, saying only that “I am satisfied that the prescribed process was followed in the appointmen­t of Mr Mukwevho”.

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