Data provided by iNet BFA
Loading...
See More

Cipro loopholes exposed in R220m tender 'hijack'

Jul 25 2010 11:43 Fin24.com reporter

Related Articles

Cipro fires seven for fake CVs

DTI annuls R153m Cipro contract

Cipro IT firm strikes back

DTI DG in firing line over Cipro tender

'Terrorists stole from SA taxpayers'

Cipro official 'suspended'

 
Johannesburg - A company that landed a R220m tender to install an electrical system for the Gautrain was 'hijacked' by politically connected entrepreneurs who exploited weaknesses in the Companies and Intellectual Property Registration Office (Cipro), Business Times reported on Sunday.

Business Times reported that  Advocate Matane Mphahlele appointed himself director and managing director of Tension Overhead at Cipro and "suspended" the existing bosses.

He also tried to take over the company's bank accounts, based on his claim that he owns 60% of the shares - a claim the company is disputing in court proceedings, Business Times said.

The much-criticised Cipro last week introduced new measures to prevent people registering as directors with fake identity numbers and no documents.

However, Mphahlele was able to "deregister" two of the company's existing directors at Cipro without providing any board resolution or resignation letters, and appointed three of his associates as directors. Both sides have laid criminal charges.

"The 'hijackers' are politically well connected. Mphahlele served as a legal director in the department of public enterprises, while his new directors include ANC member and National African Federated Chamber of Commerce (Nafcoc) deputy secretary-general Kentse Makgae, and Limpopo treasury official Thomas Mphahlele," Business Times said in its report.

Cipro's acting registrar Joey Mathekga conceded to Business Times that anyone can register as a director of any company today, and Cipro only then launches an investigation. "There is no existing legal framework that says you can't do this," he said.

 - Fin24.com
cipro
NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
10 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're talking about:

Small Business

A cash flow crunch often occurs in small businesses trying to balance cash coming in with cash going out. Watch this video to help you improve.
 
 

No more nice-to-have shopping sprees

Fin24 user Asia writes how she managed to rehabilite herself from splurging on feel-good iitems and keep clean from the bondage of lifestyle debt.

 
 

Start saving...

Time the key for retirement saving
Dummy's guide to saving
Save money with affordable account
All about endowments

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...