Monday, July 26, 2010

Acting housing CEO paid R4m

A government housing company has paid its acting chief executive officer a R2.1-million bonus on top of his R2.2m salary.

Human Settlements Minister Tokyo Sexwale revealed in a written parliamentary reply that Servcon Housing Solutions had, during the 2008/09 financial year, paid out more than R1m in a performance bonus and R1.1m as a retention bonus to acting CEO, Lindikhaya Mpambani.

Servcon is a Human Settlements Department entity that deals with the registration and verification of state property.

The Daily News was unable to reach Mpambani for comment.

Sexwale said all Servcon employees had received a retention bonus during the 2008/09 financial year, but all the payments were approved by the company's board remuneration committee.

The minister did not say how much the other employees received.

In May, former public works director-general, Manye Moroka, was grilled by Parliament's spending watchdog over a potential conflict of interest after he awarded Servcon and another state company, Intersite, a tender of R223m while he was a board member of Servcon.

Moroka disagreed with MPs that there was a conflict of interest in awarding the contract.

The standing committee on public accounts (Scopa) also questioned the R215 000 bonus Moroka got from Servcon even though he had left the company and started working as public works director-general.

Moroka said he had invested the bonus.

After joining the government, Moroka continued to serve on Servcon's board and chaired its remuneration committee.

He also told MPs that he had recommended to then public works minister, Thoko Didiza, and provincial MECs that Servcon be given the tender.

Former public works director-general, Sam Vukela, told Scopa that the department had paid Servcon R7.6m and Intersite R2.8m for work done so far.

The two companies were given contracts to audit all state assets across the country.

Moroka quit as public works director-general late last year after fighting with Public Works Minister Geoff Doidge over the R215 000 bonus.

Doidge accused Moroka of awarding the contract without following tender procedures. Moroka admitted to Scopa that there was no budget for the R223m tender.

- Daily News

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