Khotso Batho still owes state agency R1.7m
UNION boss Simon Mofokeng and his wife, Maureen, have failed to repay a questionable loan from a government agency allegedly used to buy a majority stake in their company Khotso Batho more than 10 years ago.
The Mpumalanga Economic Growth Agency (Mega) issued a letter of demand to the couple after they failed to settle a R3.5-million loan they got in 2002, when Mofokeng sat on the Mega board as well as the tender committee that approved it.
Boyce Mkhize, CEO of the stateowned Mega, told Business Times this week Khotso Batho still owed it R1.7-million.
“The debt was ring-fenced for collection and letters of demand were issued,” he said. “The loan has not been written off.”
Earlier this month, the Sunday Times reported that Mofokeng, who is the general secretary of the Chemical Energy Paper Printing Wood and Allied Workers Union (Ceppwawu), engineered the appointment of Khotso Batho as a coal handler for Sasol, a company in which his union has a major presence. Mofokeng was previously a Sasol shop steward.
Board minutes show that Mofokeng sat on Mega’s tender committee when the R3.5-million “loan” to Khotso Batho was approved.
Of this, R600 000 was used by Maureen Mofokeng to acquire a 90% stake in the company, buying out existing shareholders, said sources close to the deal.
Maureen Mofokeng declined to comment. “The information requested is confidential,” she said.
Simon Mofokeng said through his lawyer, David Feinberg, that he did not believe a conflict of interest existed as loan decisions were made “by the board”.