Share

Cipro loopholes exposed in R220m tender 'hijack'

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
We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.93
-0.0%
Rand - Pound
23.90
+0.0%
Rand - Euro
20.40
+0.1%
Rand - Aus dollar
12.32
+0.1%
Rand - Yen
0.13
+0.0%
Platinum
908.05
+1.2%
Palladium
1,014.94
+1.3%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders