48 Hours for Sowetan to withdraw baseless allegations

19 February 2018

I am deeply disappointed by this morning’s front page story in the Sowetan, claiming my alleged use of my former company, Lephatsi Financial Services, in implementing the insourcing of security personnel within the City.

I deny these allegations wholeheartedly. Sadly, the allegations do little more than tarnish the City’s reputation and the persons named within the article.  The article, regrettably also presents the ANC’s blatant lies masquerading as legitimate reporting.

Allow me to set the record straight.

As I have previously stated on this matter, whilst campaigning for Mayor of the City of Johannesburg, I resigned from all Directorships that I had held in my business career. I have declared all of my financial interests and my office has engaged with the City’s Integrity Commissioner to ensure my declarations go beyond what is required of me.

In the process leading towards the insourcing of security personnel in the City, I requested the assistance of a former business associate to advise us on the financial modelling of the exercise. This was a critical need in the project which had been lacking within the City to that point in time. This service was provided to the City, free of charge, and after having determined that this former associate has no interests in the City.  Further to this, it was made explicitly clear that any assistance given would not entitle the individual or any organisation they may be associated with, to any existing or future business with the City.

Arising from this critical work, we have been able to initiate the process to begin insourcing to the benefit and dignity of our security guards.

The fact that I am able to bring expertise from the private sector to assist the City without financial benefit to anyone other than our residents, is something of which I am not ashamed.

I am informed that he ANC’s open opposition to the idea of insourcing stems from scores of alleged lucrative security contracts handed out to their tenderpreneurs. Unfortunately the ANC is now resorting to peddling lies to undermine this process in their efforts to continue the oppression of security guards in the City in favour of tenderpreneurs.

Sadly, it would appear the journalists in question have fallen for the ANC’s bait, despite efforts by myself and my office to set the record straight.

Considering the legitimate public interest in the matter and in order to preserve the reputation of the City and those who have been wrongly implicated in the matter, the follow must be said:

1. It was made abundantly clear to the paper that no company was involved in this process, but rather the advice of an individual, with expertise, was sought to assist the City.

2.  The implications made within the story suggest the City had hired the individual in question. Let us be clear, no payment or benefit was derived by the individual who advised the City on this matter.

3. The article proceeds to quote an unattributed source as saying “Even if the services that are going to be provided are free, the company was not declared.” 

At no point during the engagements yesterday did the paper seek to establish what had been reported in the Mayor’s Declarations of Interest. In any event, it was specifically communicated by my office that I had disclosed all interests to the City’s Integrity Commissioner. I was so concerned with ensuring transparency on the matter that I equally consulted the City’s Mayoral Committee, placing the issue on record. The fact that this was omitted from the reporting has the deliberate effect of hiding the steps I had taken to promote transparency on the matter.

4. The article continues to quote ANC Johannesburg spokesperson, Cllr Jolidee Matongo as saying “there is a process that must be followed. If there is going to be a company that is going to be appointed there must be a tender advertised in this instance it has not happened.”

Again, the paper has failed to understand the application of the Municipal Finance Management Act (MFMA) or the Supply Chain Management Policy of the City, or even so much as to quote the relevant sections that are being incorrectly referred to in the article as an unsolicited bid.

The City of Johannesburg’s Supply Chain Management Policy defines an unsolicited bid as:

“Bids that are pre-emptively submitted by the prospective supplier(s) to [the] City without any requirements being identified and advertised.” It further states that this would be a bid where the supplier identifies an opportunity to supply products or render a service not usually required by the state.

At no stage was a bidding process applicable within the present circumstances.

Over and above this, reporting done by the Sowetan fails to state that I volunteered to appear before a judge to make a sworn statement under oath to clear both the City’s and my own reputation.

It is my opinion that the reporting on this matter has been extremely poor, if not with the direct intention of not only misleading the public but also driving a narrative attacking my reputation and those named in the article.

The measures taken by the journalist in question to verify the facts are wholly inadequate and representations were ignored that would have created a balanced story.

It remains my belief that the media plays a critical role in ensuring accountability from public representations. However, it is vital that journalists are thorough and impartial in their reporting.

My office has therefore written to provide the Sowetan 48 hours to publish a full retraction and apology on the matter, failing which we will approach the Press Ombudsman.

Issued by Tony Taverna-Turisan, Director: Legal Services, Office of the Executive Mayor, 19 February 2018