DA calls on Supra-managed SOE to account for R120 million contract

21 August 2018

The Democratic Alliance (DA) in North West has written to the Chairperson of Provincial Public Accounts Committee (PPAC), Mahlakeng Mahlakeng, requesting him to summon Tokiso Security Services and the North West Development Corporation (NWDC) management to explain how a R120 million contract had been awarded without following proper procurement procedures.

The appointment of Tokiso in 2017 resulted in security companies across the province losing their contracts with government entities, leaving many security guards unemployed.

It has now come to light that the R29 million owed by NWDC to Tokiso has left the security company on the brink of liquidation and we are specifically concerned about the more than 1800 job losses that will be subsequent to such a liquidation.

The blatant looting of NWDC can be traced back to former premier, Supra Mahumapelo’s 2017 State of the Province Address when he moved all State Owned Entities (SOEs) under the guardianship of his office.

To date, millions of the people’s money is being illegally funnelled into private security for the benefit of a politically connected family, namely the Naphtaly family.

The Naphtaly family, owners of Naphtronics Security, had been approached by the NWDC to buy the company that was under business rescue at the time. The NWDC rejected the Naphtaly’s asking price of R80 million and instead offered them a 20% share in a dormant close corporation called Tokiso.

The DA will submit questions on the role of NWDC’s top management, the various provincial departments involved in the security payments as well as Tokiso itself. We need valid explanations why no reports have been registered on the management and operations here.

We will further ask for a comprehensive lifestyle audit for the top management of all departments involved.

We noted the response by the office of current Premier, Job Mokgoro to move the NWDC back to the Department of Finance, Economy and Enterprise Development (FEED), as ordered by the Inter-Ministerial Task Team (IMTT) in June this year, but we believe that if the current premier is serious about rooting out corruption in the province, he must lay criminal charges against the former premier for his role in the widespread corruption within the NWDC. This includes all role players connected to both Naphtronics and Tokiso Security Services.

We believe that the people of the North West will only see real change based on real freedom, fairness and meaningful and sustainable opportunities for all citizens of the province under a DA-led government.

Issued by Jacqueline Theologo, DA North West Spokesperson for Finance, Economy and Enterprise Development, 21 August 2018