While both board chairman of Centlec, Kenosi Moroka and CEO, Malefetsane Sekoboto are under-fire for the alleged irregular expenditure of R54 million together high court judgment respectively, new details have now emerged after a company linked to a business of the company’s secretary scored audit work.
Step Up SA News has a copy of a report submitted by Tshangana & Associates Inc. to Centlec on 30 April 2021, for among others qualification audits including the company secretary, the office of his business partner.
What is interesting is Luthando Tshangana of Tshangana & Associates and Thabo Malgas, who is Centlec company’s secretary are directors of LegalExec Investment Group together with two others.
The company was registered on the 5th February 2021, and according to South African Municipal Workers Union (SAMWU), Tshangana & Associates were appointed on the 31st March 2021 to investigate irregular expenditure that was 48 days after they registered a company.
A source with intimate knowledge confirmed that the office of the company secretary under Thabo Malgas has spent over five times what it used to.
“In the previous financial year (2018), services were done by Phatsoane and Henry for R211 932 p.a, in 2019 Thabo Malgas was appointed in his role, expenses increased to R1.3 million p.a the following financial year (2020)“
Quick search on google shows that Thabo Malgas who is an attorney and lawyer practicing in Thaba Nchu is an attorney at Moroka Attorneys, a law firm that is owned by Kenosi Moroka, who is Centlec chairman. His linked in profile states he joined Moroka Attorneys as Litigation Attorney in 2013 and till present.
SAMWU has accused Moroka for mismanagement of funds and overstaying at Centlec beyond his two terms.
Another source said it’s shocking that conflict of interest is allowed at Centlec.
“So Centlec board found it alright to appoint a company secretary who worked with the chairman of the board and his other business partner gets work from Centlec without anyone asking? If that’s not conflict of interest then I don’t know.”
Further investigations reveled how another company was paid over R1.5 million for reviewing company policies.
Lele Mamatu, Centlec Spokesperson did not respond to our questions at the time of publication. If you have news or tips please email news@stepupsanews.co.za
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