Hawks probe Redisa’s di­rec­tors

Crim­i­nal charges on cards

The Star Early Edition - - BUSINESS REPORT - Roy Cokayne

THE DI­REC­TORATE of Pri­or­ity Crime In­ves­ti­ga­tions (Hawks) are in­ves­ti­gat­ing crim­i­nal charges against the Re­cy­cling and Eco­nomic De­vel­op­ment Ini­tia­tive of South Africa (Redisa) and all its di­rec­tors.

The di­rec­tors of Redisa, ac­cord­ing to the com­pany’s web­page, are chief ex­ec­u­tive Her­mann Erd­mann, Stacey David­son, Char­line Kirk, Redisa chair­per­son and non ex­ec­u­tive di­rec­tor Xolani Qubeka, Ka­bela Maroga, Bar­bara Nom­pumelelo Tapela and Eli­nor Sisulu.

Albi Modise, a spokesper­son for the Depart­ment of En­vi­ron­men­tal Af­fairs, con­firmed that the depart­ment had laid fraud and theft charges against Redisa and all its di­rec­tors in Fe­bru­ary this year.

He also con­firmed that the Green Scor­pi­ons within the depart­ment have been in­ves­ti­gat­ing charges re­lated to con­tra­ven­tions of the Waste Tyre Reg­u­la­tions and the Na­tional En­vi­ron­men­tal Man­age­ment Waste Act.

Stacey David­son of Redisa, said yes­ter­day that they were un­aware of any such charges, but these charges would in any event “have no fac­tual ba­sis”.

She said that Redisa was in the process of pre­par­ing an­swer­ing pa­pers to set aside the pro­vi­sional liq­ui­da­tion or­der ob­tained with­out no­tice to Redisa by en­vi­ron­men­tal af­fairs min­is­ter Edna Molewa, which would ad­dress in de­tail the “defam­a­tory al­le­ga­tions made about the com­pany and its man­age­ment”.

Modise’s con­fir­ma­tion of the crim­i­nal charges be­ing in­ves­ti­gated against Redisa and its di­rec­tors fol­lows Molewa on June 1 suc­cess­fully ap­ply­ing to the Cape High Court for the pro­vi­sional liq­ui­da­tion of the com­pany “to safe­guard the oper­a­tions and as­sets”.

Redisa is the only ap­proved waste tyre plan in South Africa and has col­lected more than R2 bil­lion since it launched its oper­a­tions in 2012.

The funds were col­lected via a levy paid by tyre man­u­fac­tur­ers, which re­cov­ered the cost through in­creased tyre prices paid by con­sumers, and were sup­posed to be used for the col­lec­tion and en­vi­ron­men­tal dis­posal of the waste tyres.

In an al­most 200-page af­fi­davit in sup­port of Redisa’s liq­ui­da­tion, Molewa pro­vided a litany of damn­ing al­le­ga­tions against the com­pany and its di­rec­tors, in­clud­ing that she sus­pected Redisa had suc­ceeded in trans­fer­ring al­most R30 mil­lion of pub­lic funds in­tended for the im­ple­men­ta­tion of the waste tyre plan out of the coun­try and that Redisa had failed to meet the tar­gets laid down in the plan. Molewa said Redisa was not prop­erly man­aged.

Fur­ther al­le­ga­tions by Molewa in­cluded that “stag­ger­ing amounts” were chan­nelled as man­age­ment fees to a host of com­pa­nies in which the ex­ec­u­tive di­rec­tors of Redisa had a fi­nan­cial in­ter­est.

The com­bined ex­pen­di­ture by Redisa on the fees of ex­ec­u­tive di­rec­tors and staff of Redisa, com­pris­ing about seven peo­ple, was a to­tal of R1.7 mil­lion a month.


Over and above fees earned for ser­vices ren­dered by the non ex­ec­u­tive di­rec­tors of Redisa to the amount of about R2m, these di­rec­tors were also paid an amount of R1.297m as fees for the mere ac­cep­tance of a di­rec­tor­ship in the com­pany.

Molewa said Erd­mann’s re­mu­ner­a­tion “is ex­ces­sive and pro­hib­ited by the mem­o­ran­dum of in­cor­po­ra­tion of Redisa”.

Fur­ther al­le­ga­tions were that Redisa had pur­chased a free­hold prop­erty for R18.7m, which fell com­pletely out­side the man­date of Redisa. It owned mo­tor ve­hi­cles to the de­pre­ci­ated value of R4.14m, which was not au­tho­rised in the Redisa plan, and em­ployed a se­cu­rity com­pany to se­cure the pri­vate res­i­dences of the di­rec­tors at a cost of R63 933 a month.

David­son told Busi­ness Re­port last week that the ap­pli­ca­tion for the liq­ui­da­tion of Redisa was “noth­ing but a hos­tile takeover” and de­nied any wrong­do­ing by Redisa or its di­rec­tors.


Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.