SIU welcomes High Court rulings against former interim SABC board members and their decision to award R185 million security tender

Summary:

The Special Investigating Unit (SIU) welcomes two High Court judgments related to the South African Broadcasting Corporation (SABC) and Mafoko Security Patrols Pty Ltd. The first judgment sets aside the decision by the former interim board of the SABC to appoint Mafoko Security Patrols to provide physical security services, finding that the board disregarded recommendations and awarded the tender to Mafoko, which was R2.3 million more expensive than the recommended service provider. The court ordered Mafoko to submit an audited statement of expenses and income within 30 days. The second judgment dismissed an application by the former interim board members to review and set aside the SIU report, which found that the board had irregularly awarded the security contract to Mafoko. The SIU believes that the board failed to discharge their fiduciary duties and failed to act in the best interests of the SABC. The judgments are important for consequence management and accountability and demonstrate the SIU's commitment to recovering financial losses suffered by the State due to corruption or negligence.