Suspended Scorpions deputy director Cornwell Tshavhungwa allegedly received a R500Â 000 bribe to subvert an investigation into alleged irregularities around a contract awarded by the Mpumalanga government to Rainbow Kwanda Communications.
This has emerged from the 22-page charge sheet presented by the state to Magistrate Andries Lambrecht in the Pretoria Regional Court trial of Tshavhungwa
Rainbow Kwanda, a communication company linked to former City Press editor Vusi Mona, was awarded a multimillion-rand contract by the Mpumalanga government in June 2003 for services that included advertising, marketing, public relations and media liaison.
The R30-million contract prompted an inquiry by City Press owners Media24 into possible conflicts of interest for Mona, who reportedly held shares in Rainbow Kwanda and participated in its consulting services to Mpumalanga government agencies while still editor of City Press. Mona resigned from the newspaper after the Media24 probe concluded that there had been a conflict of interest.
The Mail & Guardian understands that Rainbow Kwanda was paid, with the authority of Mpumalanga director general Stanley Soko, an amount in excess of R3,6-million before any services in terms of the contract were rendered. This payment was later found by the provincial auditor general to be in contravention of Treasury regulations.
The M&G is in possession of a letter to First National Bank, dated August 12 2003, which was signed by Soko and the chief director of corporate services, JS Dlamini, authorising the payment of R3 686 586 from the premier’s office account to Zanmoss Technologies, trading as Rainbow Kwanda Communications. The provincial government approved the Rainbow Kwanda contract on June 18. The company was to commence its services on July 1. The auditor general found that Rainbow Kwanda received payment too early.
Asked by the M&G to explain the payment, Soko this week said: “That was in terms of the agreement we had with Rainbow Kwanda. I explained all these things to the auditor general. I don’t know what you want me to say now.”
Soko said the Rainbow Kwanda contract was cancelled by the Mpumalanga government last year after it was breached with regard to the marketing of a provincial event.
The Scorpions, led by Tshavhungwa, launched an investigation into the matter after allegations that officials within the premier’s office benefited financially from the deal.
However, while in the middle of the investigations Tshavhungwa, according to the charge sheet, received a cash bribe to divert the Scorpions’ investigation.
It is not clear who paid the R500 000 bribe to Tshavhungwa, but the state is expected to provide details when Tshavhungwa’s trial resumes.
Lambrecht this week postponed the case to July 26 to allow Tshavhungwa to raise money for legal representation. According to the charge sheet, the state also claims that Tshavhungwa received an amount of R701 000 to divert the investigation of the Mpumalanga Economic Empowerment Corporation (MEEC) for irregularities relating to loans granted by the MEEC.
Scorpions investigators believe Tshavhungwa misused information he obtained during the investigation to secure a tender from the MEEC through Ramcorp Business Concepts — a company owned by his cousin.
Through the help of former MEEC CEO Ernest Khosa, Tshavhungwa allegedly obtained information about other companies — including PricewaterhouseCoopers –bidding for the tender to provide the MEEC with risk management services.