After failing to defend a claim for outstanding payments, the Mpumalanga Department of Community Safety, Security and Liaison has paid a service provider more than R90 million, including interests.
Makanyoga General, a security company previously contracted by the department to render services at government sites, obtained a default judgement in 2023 after taking the government to court over a R75 million payment dispute.
This is according to the department’s reply to a parliamentary question by Economic Freedom Fighters (EFF) Mpumalanga Chairperson and MPL Collen Sedibe last month. In her letter to Sedibe and seen by African Times, dated November 19, 2024, the Head of the Mpumalanga Department of Community Safety, Security and Liaison Gloria Mazibuko confirmed Makanyoga General’s payment.
She said the department later paid the company a further R17 million in interests, sparking claims by Sedibe that the State Attorney’s office in Mpumalanga regularly failed to defend the cases in court as part of a bigger ploy to enrich some service providers in exchange for bribes.
The State Attorney’s Office is an entity of the Department of Justice and Constitutional Development that provides legal support and defends civil and criminal cases against the government.
Mazibuko said the department’s bankers, ABSA, complied with Makanyoga General’s default judgment after the security company obtained a writ of execution.
“An amount of R75 545 258,32 was processed and paid by ABSA Bank on the 13th of December 2023 as a result of a writ of execution served to the Bank due to a default judgment against the department by the company. The amount was paid on the 13th of December 2023 and a further R17 189 115, 08 for interest to the amount was processed and paid on January 23 2024,” Mazibuko said in her reply letter.
“The processing of these amounts come during the Department’s leave to appeal process, which was subsequently granted and will be heard in 2025.”
She said the department has hired Deloitte and Touche to conduct forensic investigations.
“It is envisaged that the department will receive the final report from the Forensic Investigators by the end of December 2024 and the findings will be shared accordingly,” Mazibuko added.
Speaking to African Times about the matter, Sedibe said the Office of the State Attorney’s failure to defend the case against Makanyoga General was part of a growing trend where officials in Mpumalanga deliberately enriched some service providers in exchange for kickbacks. In another case, Sedibe added, the Mpumalanga Premier’s Office had to pay R40 million to a woman who obtained a default judgment after being attacked by striking civil servants.
“Apparently, there is a trend in the State Attorney’s Office that they deliberately sleep on duty, drop the ball, and not respond to litigations. This gives an advantage to those who are challenging the government to win the cases unopposed. We suspect that there are bribes that the guys in the State Attorney’s office are taking from these service providers. You know why? Because immediately after the payment of that R75 million, another service provider also filed a similar litigation. So, it tells you that there is conniving there. We suspect that one of the guys in the State Attorney’s office is taking money from the service providers to drop the ball,” Sedibe said.
The Mpumalanga EFF leader said they want departmental and State Attorney’s Office officials responsible for the mess to be held accountable.
“All of them must account. Why does the state fail to defend the matter? Why are they being paid as state attorneys if they cannot do their work? It’s better to lose the case in court. But you don’t go there, you don’t file,” he added.
“There was a similar matter in the Office of the Premier, and they didn’t defend. It was an official in the Office of the Premier who was attacked by Nehawu during the strike in the office for going to work. She got injured and sued the State for R40 million. She was paid that R40 million. They didn’t defend or even negotiate a lower amount.”
Sedibe said they would decide how to proceed when the Deloitte & Touch report is released.
A source said the Mpumalanga Community Safety, Security and Liaison Department filed a rescission application and lost.
“Now they say they are appealing. Even though they are trying to appeal the matter, apparently the transcripts of the court are nowhere to be found. It’s an embarrassment. The department has decided to appoint Deloitte & Touch to investigate the circumstances under which they owe the money, and the circumstances under which they ended up paying the money without a fight. Deloitte & Touch went and interviewed the State Attorney. And from the look of things, the provincial head of the State Attorney’s office dropped the ball in responding to the court papers. So, they are victims of the incompetence of the State Attorney. The State Attorney has got a lot to answer,” the source added.
The Department of Justice and Constitutional Development, responsible for the State Attorney’s Office, has rejected Sedibe’s allegations that its officials in Mpumalanga deliberately failed to defend cases to enrich litigants in exchange for bribes.
Kgalalelo Masibi, the Department’s Head of Communications, said the Mpumalanga Department of Community Safety, Security and Liaison withdraw the State Attorney’s instructions and appointed a private law firm to handle Makanyoga General’s R75 million claim.
Regarding the case against the Mpumalanga Premier’s Office, Masibi said the State Attorney and the Mpumalanga government settled on a lesser amount after the Supreme Court of Appeal (SCA) ruled in the litigant’s favour.
“The office denies that there is a trend and that bribes are being paid as alleged. On the first matter the client department withdrew the State Attorney’s instructions and appointed a private attorney and a white senior counsel. On the second matter, there was no default judgement. The SCA granted the Plaintiff merits after a private attorney won in the High Court and out office as well as the Provincial DG settled the matter on quantum in the amount of +_R16 000 after the SCA directive. The State Attorney saved the Premier’s Office R3 million,” Masibi said.
She added that the department “welcomes any investigation on these allegations”.