Eastern Cape Development Corporation (ECDC) acting head Reggie Naidoo is set to leave at the end of the month amid claims he attempted to manipulate a multimillion-rand tender for friends.
According to sources in the corporation, Naidoo’s bid to secure a R20-million information technology tender for his friends’ company included trying to coerce the ECDC’s former chief financial officer Sandile Sentwa into assisting.
It is alleged Naidoo pushed to have charges relating to the Mandela funeral spending scandal against Sentwa dropped.
The charges were later withdrawn, although it is not clear if this was a result of Naidoo’s involvement.
Naidoo dismissed the allegations as “a lot of nonsense” and referred questions to the ECDC board.
“You know there are processes to follow and only the board can answer those questions.
“All I can say is the information you have is a lot of nonsense.”
Naidoo is no stranger to controversy as his company African Integrated Treasury Solutions (AITS), according to ECDC records, owes the corporation R125000 and is among some 300 companies whose debt totaling R118-million was written off in 2012.
MEC for economic development Sakhumzi Somyo said he had heard news of Naidoo’s exit, but was yet to receive written confirmation from the ECDC board.
Sources said Naidoo was asked to resign by the board after Sentwa revealed the attempts by Naidoo to secure an Enterprise Risk Planning (ERP) system supply tender for his friends while Sentwa was CFO.
Naidoo allegedly pushed for charges against Sentwa to be reinstated after he refused to cooperate. The name of the company preferred by Naidoo is known to the Dispatch.
“Board members were beginning to ask questions as to why the ERP system has not been implemented for so long.
“Sentwa just spilled the beans. He told them that Naidoo had been trying to reverse the appointment of a service provider to secure the contract for his friends in a strategy meeting. Naidoo was then asked to resign,” said a source who spoke on condition of anonymity.
Sources said Sentwa, who has since been moved to head of properties, has had the backing of other executive managers who have maintained for months he followed the right tender procedure.
“Ethically was not going to work. At the strategy meeting questions were asked as to why the system is not being implemented as it is holding back implementation of the corporate strategy.
“ Maqethuka asked questions and Sandile got a chance to explain to the board.
“Sandile raised questions as to why there were moves for charges against him to be re-instated.
“Reggie was just exposed; the following day he was asked to leave,” the source said.
The ECDC board said Naidoo’s contract was up at the end of the month.
The board had previously said Naidoo’s contract would end on the appointment of a permanent CEO candidate. — siyam@dispatch.co.za
ECDC boss to leave under cloud of claims
According to sources in the corporation, Naidoo’s bid to secure a R20-million information technology tender for his friends’ company included trying to coerce the ECDC’s former chief financial officer Sandile Sentwa into assisting.
It is alleged Naidoo pushed to have charges relating to the Mandela funeral spending scandal against Sentwa dropped.
The charges were later withdrawn, although it is not clear if this was a result of Naidoo’s involvement.
Naidoo dismissed the allegations as “a lot of nonsense” and referred questions to the ECDC board.
“You know there are processes to follow and only the board can answer those questions.
“All I can say is the information you have is a lot of nonsense.”
Naidoo is no stranger to controversy as his company African Integrated Treasury Solutions (AITS), according to ECDC records, owes the corporation R125000 and is among some 300 companies whose debt totaling R118-million was written off in 2012.
MEC for economic development Sakhumzi Somyo said he had heard news of Naidoo’s exit, but was yet to receive written confirmation from the ECDC board.
Sources said Naidoo was asked to resign by the board after Sentwa revealed the attempts by Naidoo to secure an Enterprise Risk Planning (ERP) system supply tender for his friends while Sentwa was CFO.
Naidoo allegedly pushed for charges against Sentwa to be reinstated after he refused to cooperate. The name of the company preferred by Naidoo is known to the Dispatch.
“Board members were beginning to ask questions as to why the ERP system has not been implemented for so long.
“Sentwa just spilled the beans. He told them that Naidoo had been trying to reverse the appointment of a service provider to secure the contract for his friends in a strategy meeting. Naidoo was then asked to resign,” said a source who spoke on condition of anonymity.
Sources said Sentwa, who has since been moved to head of properties, has had the backing of other executive managers who have maintained for months he followed the right tender procedure.
“Ethically was not going to work. At the strategy meeting questions were asked as to why the system is not being implemented as it is holding back implementation of the corporate strategy.
“ Maqethuka asked questions and Sandile got a chance to explain to the board.
“Sandile raised questions as to why there were moves for charges against him to be re-instated.
“Reggie was just exposed; the following day he was asked to leave,” the source said.
The ECDC board said Naidoo’s contract was up at the end of the month.
The board had previously said Naidoo’s contract would end on the appointment of a permanent CEO candidate. — siyam@dispatch.co.za
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