R27m tender probe — SIU gets preservation order to prevent Pule Mabe from selling assets

More than seven years after a company linked to former ANC spokesperson and MP Pule Mabe secured a R27-million tender, the Special Investigating Unit (SIU) has launched a review application to cancel the tender and recover the funds that were allegedly unlawfully awarded.

The funds were paid to Groen Mintirho, formerly known as Enviro Mobi, for the supply of 200 three-wheeled waste collection vehicles (tuk-tuks) for waste pickers in Ekurhuleni in 2017.

While the SIU awaits the outcome of the Special Tribunal application, Mabe has been prohibited from leasing, selling or transferring his Steyn City property and Porsche Carrera car, following a preservation order secured by the SIU.

The order comes after the SIU’s investigation uncovered significant irregularities in the procurement of the tuk-tuks.

“Despite payments made to Enviro Mobi, evidence indicates non-compliance with procurement regulations, misrepresentation and failure to deliver contracted services.

“The SIU’s findings revealed mismanagement of public funds, resulting in losses exceeding R25-million, fraudulent activities linked to tender awards and settlements, and unlawful financial flows benefiting individuals and entities,” said SIU spokesperson Kaizer Kganyago.

Read more: Corruption accused Pule Mabe to step aside from ANC NEC

Mabe represented the ANC in the National Assembly from 2014 to 2017.

He was the party’s national spokesperson from 6 February 2018 to 28 January 2023. He was appointed to the position during the tenure of former secretary-general Ace Magashule, of whom he was believed to be an ally.

He declared his business interests when he was appointed as an MP. However, the State contends that while Mabe disclosed his links to Enviro Mobi when he was appointed, the company covered it up when it bid for the tender.

The matter is before the Johannesburg Specialised Commercial Crimes Court sitting at the Palm Ridge Magistrates’ Court.

Mabe, his wife and five others appeared before the court in October and were released on R30,000 bail each. They face 29 charges of fraud, theft and contravening the Public Finance Management Act and the Prevention of Organised Crime Act.

Four of the accused are former senior officials at the Gauteng Department of Agriculture and Rural Development — former heads of department Thandeka Mbassa and Matilda Gasela; former chief financial officer Abdullah Mohamed Ismail; and former chief director Loyiso Mkwana. Two of the accused, Mmatlhekelo Elsie Mabe and Tinyiko Mahuntsi, are employees of KGP Media Holdings.

Two entities, KGP (trading as Enviro Mobi) and Star Mass Direct (trading as Kariki Media Holdings), are also accused.

Speaking to the media outside the court at the time, Mabe insisted on his innocence, claiming that he was being targeted for providing his wife with legitimate funds to start a business.

“We trust in the ability of the investigating team; we also have confidence in the prosecutorial team that in doing their work they will make sure that they apply themselves to the correct facts put before them.”

EWN reported that Mabe told the court that he earned R25,000 per month and lived in Randburg with his family. But the SIU, which has been investigating his case, found he owned a property in the luxurious Steyn City estate and a Porsche 911 Carrera GTS.

Properties in Steyn City are priced from R2.2-million upwards.

At the time of case, Mabe stepped down from the ANC’s highest decision-making body, the National Executive Committee (NEC), in line with the party’s resolutions, which have affected several other high-ranking officials including former sports, arts, and culture minister Zizi Kodwa and former National Assembly speaker Nosiviwe Mapisa-Nqakula.

The case against Mabe and his co-accused was postponed until 25 March. DM