A FORENSIC investigation has revealed that a company belonging to ANC deputy president Cyril Ramaphosa benefited from funds meant for memorial services for former President Nelson Mandela.
The investigation, conducted by Fundudzi Forensic Services, showed Ramaphosa’s company, Auram Restaurants Co trading as McDonald’s SA, received R334000 from the Eastern Cape Development Corporation (ECDC).
Ramaphosa’s company was one of over 40 that benefited from R22214271-million that the ECDC used to pay service providers in December for services around Mandela’s funeral.
The scandal shook the corporation and led to the firing of CEO Sitembele Mase.
Fundudzi Forensic Services found Ramaphosa’s company was paid to feed ANC marshals for three days during the funeral preparations.
However, Ramaphosa’s spokesman Steyn Speed yesterday moved to distance his boss from the matter. “He’s not involved in the daily operations of McDonald’s and would therefore not have any knowledge of the order placed with the Mthatha restaurant,” said Speed.
Ramaphosa’s company started to feed the marshals on December 9, but the forensic investigation reveals that treasury HoD Marion Mbina Mthembu sent an e-mail to Mase and to ECDC chief financial officer Sandile Sentwa with the subject “banking details” on December 8, putting pressure on the two for payment of McDonald’s before the work was done. “Please receive bank details. Food ordered and payment expected before 10am. Tricky but please help.”
Since January this year, the Dispatch has written a series of stories on how several companies have irregularly benefited from money meant for memorial services for the late former president.
Many of the companies were approached by the Eastern Cape treasury to render services and the ECDC was used as paymaster for the Eastern Cape government.
The R22.2-million came from a R300-million social infrastructure grant that was going to be given to the ECDC by treasury.
Findings made by Fundudzi included that sacked CEO Mase authorised payments without the approval of the parastatal’s board of directors.
It also emerged that some of the companies were paid before they even rendered services. Victory Ticket 750cc, a company under police investigation after it was paid R6-million by Buffalo City metro, was paid R250000 before it could provide services.
The investigation also revealed that funds were transferred in advance to the accounts of various services providers and no supporting documentation was provided to forensic investigators to prove that due process was followed and no evidence of goods was provided.
Mase is alleged to have given a directive to Sentwa to make the payments.
Once they were made Sentwa requested a refund from treasury, which was refused as there was no authority to effect such payments.
The forensic investigation revealed that Sentwa knew that the money for the Mandela funeral would come from the R300-million, which was not even in the ECDC’s bank accounts at the time.
The report stated: “The ECDC paid the amount of money for the funeral arrangement even before they received funding. The funds, R300-million, were only paid in January. The letter to treasury requesting a refund was designed to mislead the board…the amount is even above the board’s delegation of authority and should have gone to the shareholder for approval.”
The investigation also found a resolution by the Eastern Cape government executive committee (Exco) to authorise payments was only sent to the ECDC on February 28. The Exco is made up of Eastern Cape MECs and the premier.
“It was the very first time an Exco resolution relating to the use of funds was sent to ECDC. Mase and Sentwa effected payments without the said Exco resolution,” the report stated.
But Mase yesterday hit back, telling the Saturday Dispatch he had documents to prove that they were given the go-ahead to pay service providers.
“I am an accounting officer and there’s no way that I was going to give money without an authority,” he said. “ECDC’s money is government money and treasury was going to pay back the money from the infrastructure development money.” Mase said he had letters written to him from the provincial treasury department thanking the ECDC for assisting with payments.
“I wish I could comment more on this, but I don’t have the forensic report. This is just a witch-hunt. I have something in writing thanking for us for assisting – why are they now saying I was wrong?”
The forensic report, released last month, recommended that Mase and Sentwa be disciplined but instead Mase was fired. Sentwa is still employed but could not be reached for comment yesterday.
The report further recommended that the ECDC board bring police in to investigate further.
Yesterday, Hawks national spokesman Paul Ramaloko confirmed they were probing the matter. — bonganif@dispatch.co.za
Cyril’s burger joint got Mandela cash
The investigation, conducted by Fundudzi Forensic Services, showed Ramaphosa’s company, Auram Restaurants Co trading as McDonald’s SA, received R334000 from the Eastern Cape Development Corporation (ECDC).
Ramaphosa’s company was one of over 40 that benefited from R22214271-million that the ECDC used to pay service providers in December for services around Mandela’s funeral.
The scandal shook the corporation and led to the firing of CEO Sitembele Mase.
Fundudzi Forensic Services found Ramaphosa’s company was paid to feed ANC marshals for three days during the funeral preparations.
However, Ramaphosa’s spokesman Steyn Speed yesterday moved to distance his boss from the matter. “He’s not involved in the daily operations of McDonald’s and would therefore not have any knowledge of the order placed with the Mthatha restaurant,” said Speed.
Ramaphosa’s company started to feed the marshals on December 9, but the forensic investigation reveals that treasury HoD Marion Mbina Mthembu sent an e-mail to Mase and to ECDC chief financial officer Sandile Sentwa with the subject “banking details” on December 8, putting pressure on the two for payment of McDonald’s before the work was done. “Please receive bank details. Food ordered and payment expected before 10am. Tricky but please help.”
Since January this year, the Dispatch has written a series of stories on how several companies have irregularly benefited from money meant for memorial services for the late former president.
Many of the companies were approached by the Eastern Cape treasury to render services and the ECDC was used as paymaster for the Eastern Cape government.
The R22.2-million came from a R300-million social infrastructure grant that was going to be given to the ECDC by treasury.
Findings made by Fundudzi included that sacked CEO Mase authorised payments without the approval of the parastatal’s board of directors.
It also emerged that some of the companies were paid before they even rendered services. Victory Ticket 750cc, a company under police investigation after it was paid R6-million by Buffalo City metro, was paid R250000 before it could provide services.
The investigation also revealed that funds were transferred in advance to the accounts of various services providers and no supporting documentation was provided to forensic investigators to prove that due process was followed and no evidence of goods was provided.
Mase is alleged to have given a directive to Sentwa to make the payments.
Once they were made Sentwa requested a refund from treasury, which was refused as there was no authority to effect such payments.
The forensic investigation revealed that Sentwa knew that the money for the Mandela funeral would come from the R300-million, which was not even in the ECDC’s bank accounts at the time.
The report stated: “The ECDC paid the amount of money for the funeral arrangement even before they received funding. The funds, R300-million, were only paid in January. The letter to treasury requesting a refund was designed to mislead the board…the amount is even above the board’s delegation of authority and should have gone to the shareholder for approval.”
The investigation also found a resolution by the Eastern Cape government executive committee (Exco) to authorise payments was only sent to the ECDC on February 28. The Exco is made up of Eastern Cape MECs and the premier.
“It was the very first time an Exco resolution relating to the use of funds was sent to ECDC. Mase and Sentwa effected payments without the said Exco resolution,” the report stated.
But Mase yesterday hit back, telling the Saturday Dispatch he had documents to prove that they were given the go-ahead to pay service providers.
“I am an accounting officer and there’s no way that I was going to give money without an authority,” he said. “ECDC’s money is government money and treasury was going to pay back the money from the infrastructure development money.” Mase said he had letters written to him from the provincial treasury department thanking the ECDC for assisting with payments.
“I wish I could comment more on this, but I don’t have the forensic report. This is just a witch-hunt. I have something in writing thanking for us for assisting – why are they now saying I was wrong?”
The forensic report, released last month, recommended that Mase and Sentwa be disciplined but instead Mase was fired. Sentwa is still employed but could not be reached for comment yesterday.
The report further recommended that the ECDC board bring police in to investigate further.
Yesterday, Hawks national spokesman Paul Ramaloko confirmed they were probing the matter. — bonganif@dispatch.co.za
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