THE manner in which ANC MP Mathole Motshekga’s insolvency company gained lucrative liquidations, especially that of Comair, drew the ire of the industry, who claimed there was “blatant corruption”.
The ANC MP made headlines after it emerged he allegedly misled Parliament on his shareholding in a major liquidation company, Sechaba Trust.
The revelations formed part of an Special Investigating Unit (SIU) investigation into alleged corruption at the Master of the High Court which unearthed irregularities in Motshekga’s declared shareholding in the company. Sechaba was recently awarded liquidation rights to that of commercial airline operator Comair and African Global Operations – formerly known as Bosasa.
Comair's wings were clipped after its application for provisional liquidation was granted in the High Court in Johannesburg in June.
In the course of the SIU investigation, a whistle-blower wrote to the Master of the High Court, advocate Martin Mafojane, detailing alleged irregularities on how Sechaba was awarded Comair’s liquidation.
“One would imagine that with the recent Comair appointment, the utmost diligence would have been applied, given the number of concerns raised by various people with advocate Mofojane, the senior master and the recent controversy and Constitutional Court application of the African Global Operations saga,” the whistle-blower said.
Jared Watson, the nephew of former Bosasa boss Gavin Watson, has challenged the appointment of Sechaba Trust’s Cloete Murry as liquidator.
According to the whistle-blower, the Comair appointment was riddled with irregularities.
“On June 14, an assistant master hurriedly appointed defunct Cloete Murray and Sechaba Trust to manage a multi-billion rand liquidation order.
“What criteria were used? In the African Global Operations matter, the reason given for the transfer of the case from the Johannesburg master to the Pretoria master by the dismissed Tessie Bezuidenhout was that the matter was large, constituted R1.3bn and needed to be dealt with at a senior level.
“The Comair matter, represents one of the most significant liquidation matters, estimated at over R2.5bn, the case is relegated to an assistant master to sign off and award,” the whistle-blower said.
Bezuidenhout was suspended last year over allegations she instructed officials to appoint certain liquidators in the Bosasa matter - including Sechaba.
According to Weekend Argus’ understanding, both the African Global Operations and Comair liquidation deals amounted to more than R4bn, allowing for, as per industry standards, liquidation companies to charge a 10% fee.
Motshekga denied the allegations stating that he did not adjudicate over who received liquidations.
"I don't know what criteria is being used for adjudication. I don't sit on the panel that adjudicates, but only on the liquidations panel ... The people that award the tender are the people that adjudicate, I don't even know who they are and don't know how they came to the conclusion that Sechaba is the best candidate."
Motshekga’s reinstatement to the national panel of liquidators last year, a body that decides which companies were awarded liquidations, also came under scrutiny over allegations it was flawed.
“It is evident that the correspondence sent by Sechaba Trust on behalf of Motshekga (to Justice Minister Ronald Lamola) seeks to get him (Motshekga) reinstated on the panel,” the whistle-blower said.
“The fact that ‘cadre deployment’ is being increased or even considered by the Department Of Justice is concerning and should not be tolerated.”
Lamola’s spokesperson Chrispin Phiri, vehemently denied this.
“There was no deviation from normal practice,” he said.
“The insolvency practitioners who were on the National List (that includes) Motshekga (are) required to do a renewal process by completing an affidavit renewal with all necessary supporting documents.
“The team that dealt with the renewal did not make any exception to Professor Motshekga. That team did not have to ask permission for its decision form anyone not even chief master or deputy general or minister.”
Another whistle-blower also laid a complaint with Mafojane, claiming that Murray had a Standard Bank judgement against his name to the tune of more than R2.5 million.
“This calls into question not only the credibility of the director in question but also the appointments made by the respective masters in awarding liquidations to the said individual and the company he represents,” read the whistle-blower’s report.
Attempts to reach Murray via telephone were unsuccessful.
Murray previously told Weekend Argus that Motshekga hadn’t misled Parliament over his shareholding.
Weekend Argus.