The North West Development Corporation is investigating allegations of fraud in connection with a multi-million rand payment to a host of companies and patents linked to African National Congress (ANC) spokesperson Pule Mabe.
The Mail&Guardian is reporting that a service level agreement signed between the North West government subsidiary and Mvest Trust has been signed by Mabe's cousin who is a trustee.
The provincial government reportedly awarded Mvest a tender to develop an app for dry cleaning and laundry services in a deal worth R49 million.
In a heated exchange with Eusebius on The Eusebius McKaiser Show last week, Mabe denied any wrongdoing.
Investigations Editor at Mail & GuardianThanduxolo Jika has more on the story.
The companies involved in that service level agreement are companies which Pule has before declared to have interest in, let us not mind the fact that he did eventually resign from some of them but the trustees have very close links to Mabe. His cousin - Eulender Rakoma and his former employee and business associate Tinyiko Mahuntsi.— Thanduxolo Jika, Investigations Editor at Mail & Guardian
He did not deny the fact that he did help them from the beginning while he was still an MP and he said that he was allowed to get an incentive from this.— Thanduxolo Jika, Investigations Editor at Mail & Guardian
Jika says the ethics committee would have to look at whether the law was broken in this instance and will have to contact law enforcement agencies to deal with the matter, depending on its outcome.
The North West development corporation in its investigation, they will have to determine the alleged fraud that was committed in paying out the money. They would then have to instruct the executive and involve law enforcement agencies to try and recoup the money.— Thanduxolo Jika, Investigations Editor at Mail & Guardian
Click on the link below to listen to the full interview...
This article first appeared on 702 : 'ANC spokesperson has close links to companies in multi-million rand deal'