Mpisanes find new bling in football
Durban's bling couple - S'bu and Shauwn Mpisane - continue to cash in on city contracts despite the government's crackdown on dodgy tenders, corruption and wasteful spending.
Since December, the couple are said to have received R288-million from the eThekwini municipality, and have walked away from their court woes and become the new owners of soccer club Sivutsa Stars.
Yesterday, while S'bu tried to avoid giving details of the deal involving the Nelspruit National First Division club - worth between R10-million and R15-million -- the DA was calling for eThekwini municipal manager Sibusiso Sithole's head because of the payment to the couple.
DA eThekwini caucus leader Zwakele Mncwango said the council had taken a decision to rescind a multimillion-rand housing tender in Umlazi - awarded to Shauwn's Zikhulise Cleaning, Maintenance and Transport - after investigations found the low-cost housing was of poor quality.
When Shauwn gave notice of her intention to fight the city in court over its decision, the council's executive committee gave Sithole the green light to challenge her.
"Instead of abiding by this council resolution, Sithole forked out more than R288-million of council funds [and paid] Mpisane in an out-of-court settlement . in direct defiance of the council resolution. Council resolutions are legally binding and Sithole knows this," Mncwango said.
But mayoral spokesman Sthembiso Mshengu said the DA's accusation was grossly misleading and was a deliberate distortion of facts.
He said there was no council resolution directing the cancellation of a contract with the Mpisanes and that payments made to them during the current financial year were for work done.
"The work emanated from an out-of-court settlement reached between the company and the municipality in 2012. The contract allowed Zikhulise to build about 2800 houses as part of the Umlazi infill part 5 project.
"The amount . was R64076947.89, which was against invoices submitted and dated for the period October 14 2013 to December 16 2013," he said.
In 2012, the municipality acceded to the Mpisanes' demands when it agreed to settle the R176-million owed to their company for houses it had built, and to honour the contract by allowing Zikhulise to build the remaining 2825 units.
Last year the municipality revealed that, from July 2012 to March 2013, it awarded R455-million in tenders to the Mpisanes through the city's section 36 legislation, which allows it to bypass normal tender procedures.
In his State of the Nation speech two weeks ago, President Jacob Zuma said the government was cracking down on corruption, tender fraud and price-fixing. Yesterday, Finance Minister Pravin Gordhan said eliminating corruption and wasteful spending was the focus of his 2014 Budget.
Last month Shauwn had tax fraud and corruption charges against her dropped. The couple's frozen assets, worth R70-million and including a fleet of luxury cars, R28-million in cash and nine properties, were returned to them.
The Times yesterday learned that the Sivutsa Stars deal depended on the club remaining in the National First Division but the cost could jump by as much as 50% if it is promoted to the elite league.
The transfer is to take effect at the end of the season, on May 11.
Stars public relations officer Charles Nkosi said a deal was yet to be concluded and that the club's owner, Derrick Khoza, and S'bu were still negotiating.
"The chairman (Khoza) said an offer had been made but it was still up to him to have a look at it and decide what to do. The thing of the club being sold is not true," he said.
The Premier Soccer League's constitution states that all takeovers, and sales of shares and stakes in clubs, must be approved by its executive committee.