Quick R13m deal for CEO’s partners
Theron accepted most expensive tender from his business associates. 2 DAYS IN CHAIR: DUARTE’S COMPANY GETS BIG CONTRACT
The acting CEO of the state-owned South African Forestry Company (Safcol) awarded his business partners a R13 million contract two days after being appointed.
Harvey Theron’s predecessor refused to award the multimillion-rand tender to Analytical Risk Management (2RM), which was run by Theron’s business partners, including John Duarte, the former husband of the ANC deputy secretary-general, Jessie Duarte.
Theron also failed to declare a conflict of interest. This emerged from Lowvelder’s investigation into state capture of the Lowveld’s state-owned plantations.
The Sunday Times reported in April last year that 2RM and Theron’s company, Prospero Digital Agency, are subsidiaries of Vumela Holdings, run by John, his son Yusha Duarte and Malcolm Mabaso, the political advisor to Mosebenzi Zwane, Minister of Mineral Resources.
The chairperson of Safcol, Lungile Mabece, indicated at a board meeting in October 2015 that he wanted a due diligence investigation into the company’s performance and financials. Theron, then a board member, stood up at the meeting and presented the board with three tenders for consideration.
According to a Lowvelder source, the one quote was for R100 000, another for R2 million and the third, the one he suggested the board should approve, for R13 million. No decision was taken on the day.
A month later Theron presented new quotes and handed out spreadsheets with the quotations for the forensic investigation. In terms of the Public Finance Management Act a board member is not permitted to handle quotations. The amounts involved also needed to be handled through a proper tender process. Theron proposed that the most expensive one from 2RM be accepted.
Members of the executive committee who were present told him that any irregular expenditure of this magnitude could only be approved by the CEO, Nomkhita Mona. The board then referred the matter to Minister Lynne Brown for approval after Mona refused to sign it off. Brown did not respond to
Lowvelder’s written questions. Her spokesperson told the Sunday
Times last year the matter was referred back to the board as it was an operational matter within the competency of the board.
Mona and her chief financial officer, Zoliswa Mashinini, both resigned on December 15, 2015.
Theron was appointed acting CEO and two days later he approved the contract.
According to Theron’s written response to Lowvelder, the appointment of 2RM was discussed at length on numerous occasions in parliament as well as with the auditor-general.
“All information regarding the legitimacy of the 2RM appointment can be obtained from said organisations,” said Theron.
John could not be reached for comment.
Theron is close to Yusha and Mabaso. Theron and Yusha were best men at Mabaso’s wedding in 2015. –