Dodgy SABC studio deal back on track

The SABC has quietly revived a R44-million suspect television studio deal that was allegedly orchestrated by Hlaudi Motsoeneng last year.

At the time, the deal prompted a public outcry and an investigation by the National Treasury.

Documents seen by the Sunday Times show the purchase order was approved last week, just two days after the cabinet and the ANC said Motsoeneng should be fired.

The controversial deal to supply the SABC with a "multipurpose set and studio" for last year's Rugby World Cup was put on ice after some SABC officials objected, saying it was awarded irregularly.

Three executives, including former CEO Frans Matlala, and five procurement and technology officials were suspended after they objected to the R42.3-million contract.

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They were unhappy that the deal never went out to tender, it was not part of the approved capital expenditure plan, procurement officials had not signed off on it, no order was placed before equipment was delivered, and payment terms were not in line with actual equipment installed.

The company, Vision View, was also demanding payment up front, which the officials said was not allowed without guarantees.

The Treasury investigation stalled after Matlala was suspended a day before he was about to spill the beans to the Treasury, according to several sources with direct knowledge.

Matlala, SABC head of procurement Madoda Shushu, and head of internal audit Lorraine Francois have all quit.

The other procurement and technology officials remain on suspension. Vision View was paid R12-million last year for a set and screens used during the World Cup, invoices show. It never supplied the SABC with the studio.

But on September 30 this year, a purchase order of R43.9-million was approved for a "multipurpose set and studio".

The list of items is identical to those specified in the original contract. This week, Vision View's Mafadi Mpuru demanded that a 50% deposit be paid up front.

Sources close to the deal said the original project had been engineered by Motsoeneng.

"He orchestrated the whole thing. The technology guys refused to sign off on the deviation so it went to operations, where Hlaudi was chairing the committee," said one.

block_quotes_start I only knew these people when they came and presented to the operations team that I was chairing," he said. "We were impressed with their presentation block_quotes_end

"His operations committee made the deal possible by cancelling a legitimate studio tender to make way for his pet project."

Vision View is owned by Mpuru and Eddie Seane, both former MultiChoice employees.

The company had never done work for the SABC before and was not on its supplier database.

Last month, the Sunday Times revealed that Motsoeneng was allegedly paid a R10-million bonus for clinching a deal with MultiChoice which critics said had cost the SABC R2-billion in potential revenue.

Mpuru this week declined to comment on the payment.

"Due to my contractual obligations I cannot comment on these questions," he said.

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SABC spokesman Kaizer Kganyago said he was "not aware of that specific payment. But if we do business with anyone, we have to pay them."

Motsoeneng denied he had orchestrated the deal.

He said he had been introduced to Mpuru and Seane by "a specialist" after the SABC had visited rival broadcasters to seek advice on how to speed up the building of studios.

"I only knew these people when they came and presented to the operations team that I was chairing," he said. "We were impressed with their presentation."

He said the deal had not gone out to tender because it was "an emergency".

"Part of building studios is emergency. We followed the process of the SABC."

The officials who had listed a string of objections were being "misleading and malicious", he said.

"There is nothing untoward about this."

stephanh@sundaytimes.co.za