Latest news with #Outa
The Citizen
a day ago
- Business
- The Citizen
Outa urges probe into R56 million Polokwane tender scandal
Polokwane municipality has rejected corruption allegations as politically motivated, claiming the tender processes were lawful. The non-profit civil rights group, Organisation Undoing Tax Abuse (Outa), has called on relevant authorities to investigate allegations of more than R50 million worth of corruption involving the Polokwane mayor and municipal manager. Outa CEO Wayne Duvenage was reacting to allegations that mayor John Mpe and municipal manager Thuso Nemugumoni awarded a R56.3 million tender to a company linked to a Zimbabwean national believed to be close to them. Whistle-blower report prompts Outa's call for action The allegation surfaced recently after the matter was reported by local media and shared on social media. 'These allegations should be investigated, more so if the anonymous whistle-blower provides sufficient evidence/facts about the allegations,' Duvenage said. 'The extent of corruption and patronage in municipalities is outrageous. All oversight entities and the criminal justice system must act with urgency to assess the facts, suspend the individuals concerned and ensure accountability and if necessary, criminal charges are applied soonest.' Opposition reveals scale of irregular contracts DA councillor Jacques Joubert said the allegations contained in the documents 'show that there were irregularities with about 28 foreign-owned companies awarded tenders amounting to more than R740 million. 'The spreadsheets outline bid numbers and contract values mostly awarded between 2022 and 2023,' said Joubert. ALSO READ: DA wants Joburg tenders linked to Kenny Kunene investigated 'According to the documents, the tenders were given to people with proximity to the high-level officials. Where there is smoke, there is often fire. Mayor urged to support independent investigation 'The outcome of the investigations that we want on the matter should be made public to ensure full transparency and accountability. If the mayor and city manager indeed feel they have nothing to hide, they should welcome any independent investigation into the matter. 'I understand the mayor has ambitions to become premier, so he would need to tackle this cloud over his name.' Polokwane municipality dismisses allegations Municipal spokesperson Thipa Selala denied the allegations and said it was a smear campaign aimed at discrediting the two officials. Selala defended the mayor and municipal manager. 'We would like to address the recent defamatory claims circulating on digital platforms. It is both necessary and urgent to clarify the facts and expose the political motives behind a series of orchestrated attacks aimed at undermining the integrity of the municipality and its leadership. Officials blame political motives and selective outrage 'The people of Polokwane deserve the truth, not sensationalised fiction designed to destabilise the municipality that is focused on service delivery, clean governance and inclusive development,' Selala said. 'We have noted with concern, contempt and disappointment the continued circulation of unfounded, malicious and misleading allegations on anonymous online platforms. ALSO READ: Man sentenced for defrauding Amtola Water Board in tender scam 'These claims attempt to falsely implicate the mayor and manager and we reject these allegations as baseless, defamatory and politically motivated.' Selala said the matter was an orchestrated smear campaign and politically motivated. 'These attacks often resurface around politically significant periods and are part of a broader agenda by individuals and factions that have lost democratic influence.' He added that the municipality did business with more than 100 companies and service providers across diverse categories of work. It was concerning and suspicious that only a select few were being singled out. 'Why is Polokwane municipality being singled out?' 'It is also important to note that many of the companies listed in recent allegations have been awarded contracts through lawful, competitive bidding processes, before the appointments of both the mayor and municipal manager.' He said that some of the accused companies and others had ongoing relationships with the municipality as far back as 2017, 2018 and 2020 – well before the current leadership team. 'Why is Polokwane municipality being singled out? The answer lies not in procurement irregularities – of which there are none – but in an intensifying campaign of targeted misinformation.' NOW READ: Gauteng health maintains court 'misinterpreted law in waste tender matter
Daily Maverick
2 days ago
- Business
- Daily Maverick
Corruption and collapse: How Services Seta blew R163-million and broke SA's skills promise
From fake companies winning multimillion-rand contracts to whistleblower warnings ignored, this exposé reveals how corruption flourished unchecked at South Africa's Sector Education and Training Authorities (Setas). As pressure mounts for reform, the question remains: will new leadership break the cycle of corruption? Long before axed higher education minister Nobuhle Nkabane took office, the Sector Education and Training Authority (Seta) was already under a cloud of corruption and governance failures. Tasked with managing training levies and skills development in the services sector, the Services Seta has been dogged since 2018 by allegations of tender irregularities and financial mismanagement, exposed through investigations by watchdog group Organisation Undoing Tax Abuse (Outa). How the Services Seta missed every red flag At the heart of the Services Seta scandal lies a R163-million contract for biometric units meant to track learner attendance and manage stipend payments. Shockingly, the tender ran for just four days — far short of the Treasury's 21-day requirement — and bids were evaluated a week before the closing date. The contract went to Grayson Reed — a shell company with no track record, no South African Revenue Service (SARS) declarations, and no real capacity to deliver. Investigators later revealed that the name itself was bogus. Despite glaring red flags, the Seta's bid committees waved the deal through. Outa says this blunder cost taxpayers more than R163-million. Outa's investigation also uncovered serious financial irregularities in the execution of the contract. Grayson Reed submitted travel and accommodation claims exceeding R2.1-million, many lacking proper supporting documents. Some invoices were allegedly fraudulent, while others billed for expenses incurred by unrelated parties. Suspiciously high fuel and Uber claims suggested daily double-charging, with duplicated invoices slipping through. Despite the red flags, senior Services Seta officials — including Project Accounting head Mpho Teffo and CFO Tsheola Matsebe — authorised the payments, raising alarm bells over the Seta's internal controls. The contract's pricing was equally alarming — items like exam pads and USB sticks were inflated by up to 8,000%. Learners reported delayed stipends, faulty biometric devices, and underpayments. Strangely, records showed Grayson Reed paid its supplier more than it charged the Seta — raising red flags around possible kickbacks or financial mismanagement. Despite Outa's repeated calls for cancellation and investigation, the Services Seta only terminated the contract six months early, in 2019, with no funds recovered and no criminal charges laid. More contracts and more questions The Grayson Reed saga was not a one-off. In June 2023, Outa uncovered yet another case of suspect spending at the Services Seta — a R36-million contract handed to Five Star Communications and Projects for branding materials. A branded tender box costing R302,000 — marked up by over 8,000% — was among 29 inflated invoices paid to Five Star without question, all approved by then-CEO Andile Nongogo and branding head Duduzile Mwelase. Outa has since laid criminal charges with SAPS against the pair and two Five Star directors, citing fraud, corruption and breaches of the Public Finance Management Act. The Werksmans report: confirming the suspicions Under intense pressure from Outa and Parliament, the Services Seta commissioned Werksmans Attorneys in early 2023 to investigate procurement irregularities across multiple contracts. Werksmans' findings confirmed whistleblowers' worst fears — exposing deep rot in the Services Seta's procurement processes. Contracts were pushed through in as little as five days, with payments made before verifying delivery. In one shocking case, a contract ballooned from R6.6-million to R89-million with no valid explanation. Even committee setups were flawed — some decisions appeared to rest on just one improperly appointed member. Adding to the turmoil, the Auditor-General issued a qualified opinion on the 2023/24 financials, citing poor record-keeping, material misstatements and glaring control failures. Irregular expenditure topped R193-million for the year — pushing the total to a staggering R1.26-billion. Impunity persists Daily Maverick spoke to Wayne Duvenage, the CEO of Outa, who said that while Outa had exposed multiple irregularities, particularly concerning tender manipulation and contract awards, in many cases the incumbents had remained in their positions. 'We try to get the boards to recognise misconduct or maladministration. If they don't act, it becomes very difficult for us to effect any meaningful change,' he said. The 2023/24 annual report shows that disciplinary cases over irregular spending remain unresolved. Daily Maverick contacted the Services Seta for comment on 9 July, but the organisation did not respond to queries on the status of these cases. In hearings in October 2024, committee members condemned the Services Seta's leadership for ignoring the Werksmans report and failing to hold anyone accountable, warning that this impunity eroded public trust and fuelled corruption. Outa laid criminal complaints against Nongogo with SAPS in June 2023 over corrupt practices involving overpriced contracts awarded by the Services Seta. Nongogo was implicated alongside other officials for approving exorbitant payments and fraudulent activities. Nongogo was later appointed as NSFAS CEO in 2024. Do Seta boards dodge the old playbook? On the issue of Seta board appointments, Duvenage said that the former minister should have come up with a different approach. 'The chairperson and board members are in powerful positions, and they must be strong people appointed to exercise effective oversight. The minister knows, and we've told her, that these Setas have corrupt networks that infiltrate and use executive positions to control tender flows,' he said. 'We need skilled, credible board members with the moral courage to stand up to corruption,' said Duvenage. 'The public are not fools — we won't just accept anyone in these positions.' In June, Nkabane told Parliament that her selection of 21 Seta chairpersons was guided by an advisory panel including advocate Terry Motau SC and several senior officials. But that claim is now unravelling — Motau says he was never formally involved, and others named have also denied participating in the final decisions. Their denials cast serious doubt on the accuracy of the minister's version of events. The way forward Reflecting on South Africa's investment in skills development, estimated at R21-billion annually, Duvenage said the returns had been inadequate. He reiterated that a systemic overhaul was urgently needed. 'There must be a summit, bringing together government, business, service providers, evaluators, civil society and citizens to map out a new way forward,' he said. Duvenage called for an industry-led approach, with businesses identifying skills needs instead of the government dictating priorities. He warned that credible business leaders were stepping back due to political interference, saying: 'The system has collapsed. It's not working.' South Africa's Setas stand at a crossroads, their promise of skills development overshadowed by corruption and mismanagement. Without urgent reform and accountability, public trust will continue to erode, and the country's workforce will ultimately bear the consequences. DM
TimesLIVE
7 days ago
- Business
- TimesLIVE
Just one Gupta property finds a buyer at Saxonwold auction
Furniture from two of the houses was sold as a separate lot per property. The loose assets of house No 5 were sold to an in-person bidder for R100,000, while the furniture of house No 7 went for R60,000. The furniture for house No 3 was not sold. Park Village Auctions disposal manager Graham van Niekerk described the outcome as 'exactly what we expected'. He said despite house No 3's rundown condition, it had more redevelopment potential. 'You can see for yourself the scope to upgrade it or start from scratch. The other two are very unique and difficult properties,' said Van Niekerk. He attributed the lack of interest in houses No 5 and No 7 to several factors: high municipal valuations, poor structural condition, restrictive zoning (residential 1) and the stigma associated with the Gupta name. Outside the compound, a small group of people protested, demanding justice and accountability for the family's alleged role in state capture. 'This is not the first time we have protested,' said Li Gula, from the Organisation Undoing Tax Abuse (Outa) 'We want the Guptas to come back and account. The NPA is moving far too slowly. The Zondo commission cost taxpayers millions and yet justice still drags on.' Lazarus said the auction was part of an effort by business rescue practitioners to open the process to public scrutiny. 'There is a stigma around these properties, but the most important thing is transparency. Everyone had the same opportunity to bid,' he said. Lazarus acknowledged that properties No 5 and 7 were always going to be tough sells. 'They are in serious disrepair and need major investment to restore. The business rescue team will now explore alternative methods to dispose of them, including closed tenders.' The auction may not have cleared all assets but it opened a rare public window into what remains of the once-powerful family's South African empire now reduced to crumbling mansions and unresolved questions.
The Citizen
23-07-2025
- Politics
- The Citizen
Outa concerned about new higher education minister
Outa keeps an eye on the department, having completed a report on corruption at NSFAS, and is now calling for action at Setas. Civil action organisation Organisation Undoing Tax Abuse (Outa) is urging the new Minister of Higher Education Buti Manamela to take urgent action on corruption in the Sector Education and Training Authorities (Setas). Wayne Duvenage, CEO of Outa, said the new minister has a huge task ahead, as the Setas are mired in dysfunction, but Outa is concerned that he is too strongly linked to the old guard and the dysfunction and corruption in the department and its entities. 'While minister Manamela brings years of experience to the role, having served as a deputy minister in various portfolios since 2014, his long-standing presence within the higher education department raises serious concerns about continuity rather than change. 'Given his proximity to the dysfunction and corruption that plagued the department of higher education and its entities – particularly the Setas – for more than a decade, his appointment is not a welcome development for those demanding real reform and accountability.' ALSO READ: 'Emails' reveal Nkabane misled Parliament over Seta scandal – but insisted it wasn't intentional Outa on second deputy minister On Monday, President Cyril Ramaphosa also appointed Dr Nomusa Dube-Ncube as deputy minister of higher education and training. Duvenage said Outa did not expect the president to appoint a second deputy minister, as Mimmy Gondwe is already in place as the deputy. 'Over several years, Outa, exposed deep-rooted maladministration, governance failures and corruption at multiple Setas and at the National Student Financial Aid Scheme (NSFAS). While there have been some positive developments, such as the appointments of Dr Karen Stander as NSFAS chair and Waseem Carrim as CEO, the Setas remain mired in dysfunction, with little sign of meaningful intervention.' He pointed out that despite repeated adverse findings and qualified audits from the auditor-general, the leadership at entities like the Insurance Seta, Construction Education and Training Authority, Services Seta, Education, Training and Development Practices Seta and Media, Information and Communication Technologies Seta remained intact. 'Executives implicated in mismanagement continue to draw large salaries and bonuses, while the essential mission of developing skills and improving employability is undermined. The Setas cost business taxpayers R21 billion a year, but do not deliver value for money. 'Outa urges minister Manamela to demonstrate a break from the past by acting swiftly and decisively to restore integrity and oversight across the Seta environment. This must begin with the urgent appointment of new Seta board chairs who are ethical, independent and free from political interference to ensure that executive management is properly held to account.' He said Outa will write to Manamela to request an urgent meeting to share the substantial evidence and insights Outa gathered over the years on systemic corruption within the Setas. ALSO READ: Nzimande pulls knives out as Outa stands by report claims Outa wins against former NSFAS chair Meanwhile the high court found last week that Outa did not have to give the former National Student Financial Aid Scheme chair a right of reply to the organisation's report on corruption at the entity. The Johannesburg High Court backed Outa over publication of its NSFAS report, ruling that former NSFAS chair Ernest Khosa did not have a right to pre-publication comment before Outa published a report implicating him in corruption. 'A person implicated in acts of corruption in a report published by a private actor does not have the right to a hearing prior to publication,' the court said. The dispute revolved around a report and statement Outa published about NSFAS and Khosa in early 2024, implicating him in corruption with NSFAS suppliers. Khosa resigned a few months later. Advocate Stefanie Fick, executive director at Outa's accountability division, said Khosa wanted the court to order Outa to remove the report from its website and order that he be given an opportunity to respond to the allegations, that the report only be republished once this was completed to his satisfaction and that the republished report contain an accurate record of his responses to each allegation. However, Outa refused to remove the report, but offered to hear Khosa's version and update the report accordingly, but Khosa declined. Khosa argued that he had a right to respond to the allegations before Outa released the report but the court found that no such legal obligation exists, especially for private actors acting in the public interest. ALSO READ: Higher education minister Nkabane announces new NSFAS board to drive reform Judgment means organisations like Outa can expose wrongdoing without right of reply Fick said the legal significance of this judgment lies in its clarification of the rights and obligations of private actors, such as Outa, when publishing reports implicating individuals in alleged wrongdoing. 'This judgment reaffirms our constitutional right to expose maladministration and corruption without facing undue procedural barriers. Khosa's attempt to silence public interest reporting under the guise of procedural fairness was rightly dismissed by the court.' Acting Judge GA Fourie found: Khosa had no right to a pre-publication notice because there is no requirement in law for Outa to notify individuals before publishing allegations in a public interest report; Outa, as a private entity, does not exercise public powers or perform public functions. Its investigations and publications are not binding and do not carry statutory authority. This distinction is critical in determining the scope of procedural obligations owed by private entities; The right to dignity and reputation does not override the constitutional protection of free speech, especially when allegations serve the public good; The appropriate legal avenue for challenging potentially defamatory content is through defamation proceedings, not through pre-publication interdicts; and Constitutional rights do not extend horizontally to impose obligations on private entities like Outa in the way Khosa claimed. ALSO READ: Don't let Andile Nongogo near public money – Outa Judgment protects civil society organisations to expose corruption Fick said this judgment reinforces the principle that private actors are not bound by the same procedural obligations as public entities. 'It also protects the ability of civil society organisations to expose corruption without undue interference, while preserving the common-law remedies available to individuals who feel aggrieved by such publications. 'Khosa did not complain that the Outa report was defamatory or deal with the veracity of the allegations against him. He did not even include the report in his founding papers. This gives rise to concerns that the intention was to prevent or delay publication of the report, or distort it, which should be avoided. 'The judge said 'the impact on the ability of whistle-blowers and other private actors to expose corruption would be significant'. The court dismissed the application with costs, noting that although the matter raised novel legal questions, there was no basis for granting the relief Khosa sought.'
IOL News
21-07-2025
- Business
- IOL News
Ernest Khoza loses court bid to challenge Outa's corruption report
The Johannesburg High Court has dismissed an application by the National Students Financial Aid Scheme (Nsfas) former chairperson, Ernest Khoza's application for the Organisation Undoing Tax Abuse (Outa) to remove a report implicating him in corruption. Image: Supplied Ernest Khoza, former chairperson of the National Student Financial Aid Scheme (Nsfas), has lost his bid to challenge the Organisation Undoing Tax Abuse (Outa) over a report implicating him in corruption. The Johannesburg High Court dismissed his application to have the report removed from Outa's website. It was Khoza's second attempt after he wrote to Outa, through his attorneys, demanding the removal of the report shortly after it was published last year. The report, which was published in January 2024, exposed how Khoza and former Higher Education Minister, Blade Nzimande, defrauded Nsfas through kickbacks from service providers. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ Khoza did not respond to calls and messages. Khoza argued that Outa was no mere private party, and that the default common law position did not apply to it. Among others, he stated his argument as: In publishing its investigation reports, Outa reaches a wide audience, and therefore acts as a quasi-media organisation, and attracts similar duties to the recognised media, in particular the duty to allow implicated parties prior notice and an opportunity to comment, prior to publication. However, in its answering affidavit, Outa described itself as a non-profit civil action organisation supported and publicly funded by ordinary South Africans. Its mission includes challenging and taking action against maladministration and corruption, and, where possible, holding those responsible to account. The organisation added that as part of its work, it has investigated alleged maladministration in the administration of publicly funded bursaries and student accommodation by the Department of Education and Nsfas, the government-funded bursary and loan organization. 'Outa received recordings of a telephone conversation purportedly involving the applicant, duly investigated, and in January 2024, it published the article and impugned report,' read the papers. Outa added that the report contains accurate quotes from the recordings, and that it is truthful and has been published in the public interest. The court said the investigation did not determine anything, adding that it made prima facie findings of fact and provided them to the relevant authorities with recommendations on further action. 'None of the findings or recommendations contained in Outa's report are binding on anyone, and the police and National Prosecuting Authority will decide independently whether to investigate Outa's complaints or to prosecute anyone accused by Outa of wrongdoing,' read the judgment, which added that the organisation performs investigations and makes recommendations in its capacity as a private actor. Reflecting on the outcome, Outa's executive director of accountability, Advocate Stefanie Fick, said this judgment reinforces the principle that private actors, even those acting in the public interest, are not bound by the same procedural obligations as public entities. Fick said the judgment also protects the ability of civil society organisations to expose corruption without undue interference, while preserving the common-law remedies available to individuals who feel aggrieved by such publications. Get your news on the go, click here to join the Cape Argus News WhatsApp channel. Cape Argus
