Cipro loopholes exposed in R220m tender 'hijack'

2010-07-25 11:43

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.


  • Starby - 2010-07-26 07:21

    You know what's sad? Here I am busy trying to figure of ways and means to make a decent legitimate living, while these hog-nogs bend the rules for the detriment of us law-abiding citizens.

  • Surely it's April 01 - 2010-07-26 10:00

    This has to ba a joke. Surely.

  • CB - 2010-07-26 10:26

    Now why does this not surprise me...? Why would the ANC goverment do anything about coruption if it is them doing it?

  • Brathas - 2010-07-26 11:14

    Why are we even surprised. CIPRO is a joke and should be replaced by an independent organisation , but then again the corrupt ANC don't know what that word means.

  • RJ - 2010-07-26 12:03

    Read Finweek cover story of 6 May 2010 on the increase of Business Hijackings.

  • AZB - 2010-07-26 12:13

    CIPRO's systems are schocking and on top seems they have double standards. I have tried, legally, six times to deregister a CC that has been dormant (with no assets or liabilities) for many years, but just get no joy. But then I am not politically connected, just a law abiding citizen.

  • Toni Falletisch - 2010-07-26 12:15

    How about arresting Mphalele ,now caught with the smoking gun. People get arrested for shoplifting this is NO different.

  • jerry - 2010-07-26 12:56

    here we go again -ANC stealing from other people . they are so arrogant and cocksure that they will get away with it because of their political connections . opportunistic thieving parasites , the lot of them

  • Kathy - 2010-07-28 10:43

    Hi Wynand, As per our conversation yesterday, please check out this corruption happening with Cipro...

  • moses - 2010-12-16 15:30

    Why always ANC doing this and that.Blame individuals.The govt.does not only employ ANC people.Get your attitudes right.We can't change your attitudes.

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