Following our article published last week in which the contents were of the leaked audio of a meeting between Kenosi Moroka, Centlec SOC board chairman, and Mokgadi Kganakga, DA councilor in Mangaung Metro, the new details have emerged.
Previously, as reported the conversation was around the impending resignation of Moroka amid frustrations due to the lack of urgency from Mxolisi Siyonzana, Executive Mayor of the Mangaung Metro, today we can report that the conversation dwelled on Thabo Malgas who is the Company Secretary and Malefane Sekoboto, Centlec CEO.
In the audio Moroka tells Kganakga some things are minuted that could finish Centlec concerning the conduct of the board and how CEO refuses to attend board meetings.
In the same audio Moroka can be heard telling Kganakga “wa tsamaya” he is going.
It’s not clear if he is referring to Malgas or Sekoboto.
In January 2021 the South African Municipal Workers Union (SAMWU) accused Moroka of having overstayed at the power utility in a media statement.
“The Centlec Chairperson of the board Mr. Kenosi Moroka is not fit to hold this position and the union strongly believes he has occupied this position irregular as opposed to the charter of the board,
Municipal Systems Act,2000(Act no 32 of 2000), Municipal Finance Management Act 2003(Act
no 56 of2003) and the Constitution of the Republic of South Africa.
The Chairperson of the Board Mr. Moroka is doing business with the parent municipality of the entity he chairs. His company was awarded bids during April 2021 in Mangaung and appointment as the panel of legal Advisors and Firms of Legal Practitioners for three (3) years.
Clause 3.5.8(ii) of the Board Charter states Board member is not, and has not been affiliated with a company that acts as an advisor or consultant to the entity or its related parties, nor is not and has not him/herself acted in such capacity at any time during the past five (5) years.
Clause 3.5.8(iii) Board member is not, has not been affiliated with any significant customer or supplier of the entity or its related parties.
Further clause 3.5.8(iv) states Board member does not currently have, nor had any personal service contract with the entity, its related parties, or its senior management at any time during the past five (5) years.
Based on the above it is showing that Mr. Moroka is not fit to occupy the position as the Board Charted has been flawed and disregarded.” reads the media statement.
Concerning the alleged irregular expenditure SAMWU said.
“On the 31st March 2021, Tshangana & Associate Inc was appointed to determine and/or do the investigation to support the Centlec board and MPAC committee in making appropriate decision to take disciplinary measures or report to relevant authorities.
The report has revealed irregular expenditure of more than fifty (50) million rands. On the 9th of February 2015, a signed letter by Mr. Moroka as the interim Chief Executive Officer confirmed the appointment of companies implicated in the report.
Mr. Moroka further signed a letter on the 19th of March 2015 as interim Chief Executive officer confirming the awarding of tenders to the very
same companies implicated in the report.
- It was short notice publication of the tender in December 2014
- There were weaknesses in the quotation processes after the award of a panel of tender
- The signing of a service level agreement that resulted in payments exceeding the initial
approved contract.
– There was an absence of documents that should be available and retained by Centlec.
The report has recommended a full forensic investigation into allegations of financial misconduct should be approved without delay but to this day Mr. Moroka has done nothing because he has benefited.
Clause 3.6.3 of the Board Charted of Centlec says The Board must ensure effective, efficient, and transparent systems of financial and risk management and internal control, robust internal
audit function, a procurement system that is fair, equitable, transparent, competitive, and cost-effective, and a methodology for the thorough evaluation of capital projects before final approval
Clause 3.6.6 says The Board must take stringent measures to guard against irregular, fruitless and wasteful expenditure and appropriate disciplinary measures must be taken against any employee who through criminal conduct or non-compliance with any operational policies incurs such losses or expenditure.
The Board must ensure that instances of financial misconduct are investigated and that the prescribed reports are lodged timeously with the parent municipality to enable the municipality to report the same to the relevant authorities.”
Based on all of the above the chairperson of the board has a case to answer whilst he was an
interim executive officer of centlec.
His conduct for not following the prescripts of the Board
Charter of Centlec displays his unfitness to hold this position.”
In conclusion, SAMWU said Moroka was not fit for office.
“The chairperson of the board has exceeded his stay as a member of the board since 2008 was a member of the board. Members of the board are only eligible to become a board member only for two(2) terms but he is now 13yrs on the board which is more than three(3) terms.
Can the council of Mangaung deal with these irregularities?
Members of the board have laid many complaints against Mr. Moroka but he seems to be untouchable however SAMWU says pack your stuff and vacate the position as the chairperson of the board because you are not fit to hold this position.
The Chairperson has been implicated in
the report of irregular expenditure to the tune of more than fifty(50) million rands in Centlec.”
Step UP SA News has followed up on these allegations by SAMWU and a leaked Financial Statement of Moroka Attorneys shows the accounting and tax consultants firm has been doing business with Mangaung Metro and raked in R2.285 405 in 2021 and R986 127 in 2020.
With Free State Development Corporation they raked in R114 365 and its alleged FDC owe Centlec over R300 million and Moroka Attorneys made over R7 million from the African National Congress between 2020 and 2021. The same ANC that held a meeting with Centlec after its switched off power in five government buildings.
Another municipality doing business with Moroka Attorneys that has a contract with Centlec is Mohokare Local Municipality while Ikgageng Construction is also a client of Moroka Attorneys and it’s also Centlec contractor.
With only two board members left after the mass exodus last month, only God knows why Mxolisi Siyonzana has not disbanded the board because there is no board.
Thabo Malgas, Centlec, company secretary said the entity has written to the shareholder in respect of the composition of the board and the shareholder has not pronounced on the composition.
Asked about the possible conflict of interest as these companies do business with Centlec he said.
“I do not know the financial statements of Moroka Attorneys and who they do business with and as such, I can not comment on that issue.”
Moroka was asked if they were plotting against Sekoboto and he said.
“I have no reason to ask any person to assist me to plot against any person as that is against my nature and conscience.
Why should i plot against another person or Malefane, i have no business to conspire against people or Malefane. Any issues i have against any person and/or Malefane, i raise them without any doubt, fear or favour, they know it.
I don’t solicit for assistance for untoward conducts, i am a matured person, i know what’s right and wrong, and i have opted for the former. “
Mxoisi Siyonzana, Executive Mayor of Mayor Metro did not respond to our questions.
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