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News | National | General

Linda Mti's Bosasa bonanza

JOHANNESBURG, SOUTH AFRICA Feb 06 2009 07:14
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Controversial facilities management group Bosasa lavished flights and luxury hotel stays on former prisons boss Linda Mti -- while it landed prisons contracts worth more than R1-billion.

The mutually beneficial relationship between Bosasa and Mti, now head of security for the 2010 Local Organising Committee, is laid bare by travel records in the Mail & Guardian’s possession.

They show that Bosasa:
  • Sponsored the domestic air fare of Mti and his family members on at least five occasions;
  • Paid for Mti’s stay at the luxury Hemingways hotel in East London on at least two occasions; and
  • Rented premium cars for Mti when he visited East London at least twice.
Mti received these benefits while prisons commissioner. During the last two years of his tenure the group won contracts from the correctional services department worth more than R1-billion. Mti failed to respond to numerous queries, while Bosasa’s lawyer advised the company not to answer the M&G’s questions.

Mti left correctional services under a cloud of suspicion in 2006 after Beeld revealed that Bosasa’s company secretary, Tony Perry, had registered a private company for him. He was subsequently appointed head of security for the Fifa World Cup.

Bosasa’s travel records show that:
  • On June 15 2005 Mti flew to East London at Bosasa’s expense and was put up in the four-star Hemingways hotel for four nights. The company also paid for his Avis premium rental car. The trip came shortly after Sondolo IT, 40% owned by Bosasa Operations, won a R237-million contract for the supply and installation of access control systems and CCTV at 66 prisons on April 29 2005.
  • On July 25 2005 Bosasa sponsored the return airfare of Mti’s relative, Sehlule Mti, from Johannesburg to Port Elizabeth and back. Three days later Bosasa paid for Mti and then National Intelligence Agency deputy director general Gibson Njenje to fly from Johannesburg to Port Elizabeth.
    In December 2005 Bosasa company Phezulu Fencing won a R487-million tender to supply and install security fencing at 66 prisons.
  • On March 3 2006 Bosasa sponsored a weekend trip for Mti to East London, where he stayed in the Hemingways hotel’s presidential suite. Bosasa’s travel agent was instructed to rent a seven-seat Mercedes Benz Vito for Mti.
Two weeks later, on March 17 2006, Sondolo IT won a R224-million tender to install TV sets in all prison communal cells.

A day later Bosasa paid for Mti’s son, Vukani, to fly from Johannesburg to Cape Town on a return ticket.
Njenje told the M&G he was Bosasa’s founding non-executive chairman before being headhunted by the NIA. While in the NIA’s employ his travels to Port Elizabeth were covered by Bosasa twice -- on June 10 and July 28 2005.

He told the M&G he saw no problem with Bosasa paying for his travel while he was a state employee. “I was headhunted into a government position while active as a businessman with various interests. All I needed to do to comply with the employment conditions was to resign as an executive director from the companies,” he said.

“My shareholding and all benefits accruing were a matter of declaring and that I did as required. Some of the companies I was a shareholder in had or have relations with Bosasa. My private travel expenses would be one of the benefits that accrued to all the shareholders of the companies I am referring to.

“So, as it were, it was not a matter of Bosasa ‘sponsoring’ my travels, but an arrangement between companies.”

CONTINUES BELOW


The M&G received three calls this week from “concerned Bosasa employees” who said they were afraid the M&G’s reporting about their employer would cost them their jobs.

Two threatened to organise a protest march on the M&G’s office, accusing the paper of being “racist” and printing “untruths”.

“Who will look after my children if I don’t have a job anymore?” an employee from the East Rand said.

Bosasa spokesperson Papa Leshabane did not return the M&G’s calls on the matter.

Here’s the proof
  • Annexure A: Confirmation of travel booking for Linda Mti and Gibson Njenje by Bosasa’s travel agent

  • Annexure B: Email from Bosasa’s operations coordinator Angelo Agrizzi to Bosasa’s travel agent about “VIP booking” for Mti

  • Annexure C: Confirmation of travel and accommodation booking for Mti by Bosasa’s travel agent
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    Comments

    Well done! This is what made the old Weekly Mail great! Keep up the spirit and substance of good investigative journalism.
    Com Entary on February 6, 2009, 7:56 am
    Excellent reporting. Now that we know where the taxpayers' funds ended up, why not turn the torch on corporate greed in South Africa. I suggest that you start with the banks. Same intricate details. Then you can home in on most of the JSE-listed companies and their lopsided procurement policies that are shared in golf clubs, saunas and resident pubs.
    Ed Runhar on February 6, 2009, 9:04 am
    I think that the M&G has done an excellent job in following up this whole saga. However, the facts presented here are not enough to draw definite conclusions.

    If a company intends, or is, doing business with a government department, then why should there not be meetings with a government official? Could many of these trips not simply reflect legitimate business meetings? The, the flights, the cars and the hotels would not look sinister - if not done for Mr Mti's personal benefit.

    Or, can someone explain why these things ARE irregular and / or unethical?
    Mike Atkins on February 6, 2009, 10:39 am
    Shocking!!!!!!!!!!!!!Or is this an indication that politicians and high profile government employees have no regard for the South Africans they are to apppointed or employed to serve, or the officies they hold. No serious actions would be taken against the...I painfully remember te Travelgate scandal...

    But I get worried with the kind of evidence provided in the annexures and wonder how they would have been received. How possible is it to get the email record between two employees of the companies under scrutiny without either hacking the computers or finding a high profile spy within the organisations...I wonder...
    Ndukuyakhe Ndlovu on February 6, 2009, 10:43 am
    This article is EXACTLY the same as the one you and Carrien published in 2006, what are you trying to achieve by re-publishing the same work done while under the employ of another paper?

    Also, it's common practice for companies to smooge potential clients
    James Simons on February 6, 2009, 10:43 am
    Mti must be a cheap date if all it took was a couple flights and car rentals
    Luthando Mkoliswa on February 6, 2009, 11:23 am
    seriously, either Mti is a very cheep date,or something more is up a sleeve Dude for those kind of contracts at least a trip to Europe would be plausible.
    brigitta stone on February 6, 2009, 11:58 am
    Good point, Ed - there is no doubt that corporates breach governance procedures and need to be held to account. Just remember though that corporates are owned and funded by voluntary shareholders, who can sell out if they are unhappy. The taxpayer who funds the state departments has no such option.
    Mark Robertson on February 6, 2009, 1:25 pm
    lol where else but in sa would this type of thing happen? o ja everywhere else in the world. a thought: some flights and car rentals doesnt exactly a scandal make does it? lets focus on nailing the fatcats getting even fatter from the corruption instead of the fatcats getting free local airfare :)
    to be announced on February 6, 2009, 3:17 pm
    What a load of HOG wash, as was previously said, so what, how many corporate boxes are there at the stadiums, who uses them and for what -- Typical Adriaan - a Black Man aint supposed to be entertained - Dont you ever write anything but on Bosasa -- are they paying you for the FREE ADVERTISING -- how come you just regurgitate the same old story time after time -- 4 years later, i suppose Carien Du Plessis will also regurgetate the same again. One would swear that you are one of Rupert's favourite little boys --
    andrew Mc Laughlin on February 10, 2009, 12:44 pm
    Expose them until Zuma's administration do something about this company.
    Nwali Unknown on July 20, 2009, 2:26 pm
    You are all missing the point. It is not about private companies. Its about our tax rands and govenrment run institutions. Who gives a shit if a privately owned company splashes out on thier clients. Its when they begin getting contracts through bribery and corruption using my hard earned tax money that pisses me off. These bastards have and still are enriching themslevs at our expense. M&G should keep highlighting these and all other types of shit like this every damn day until the (Gov) begin realising the impact it has on all of us. Companies like Bosasa that use these types of business ethics should be closed down.
    Apocalypse Now on November 20, 2009, 10:32 am
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