Mphaphuli Consulting responds on ‘Operation Mabone’ controversy

Burgersfort

Mphaphuli Consulting has lambasted the recent statement issued by the Special Investigating Unit (SIU) on 7 September 2023, relating to the ongoing legal proceedings in ‘Operation Mabone’ Project in Fetakgomo Tubatse Municipality (FTLM).

Responding to the SIU statement, Lufuno Mphaphuli, Mphaphuli Consulting Director, said they feel that the SIU statement is inaccurate and defamatory and is causing significant harm to their reputation.

“The SIU alleges that we overcharged the municipality by R76 Million in the ‘Operation Mabone’ contract, but we refute these claims as they have no basis in fact or evidence,” he said.

Mphaphuli said in fact, the SIU’s own pleadings in the review application contradict their statement, as they stated that it was unlawful for National Treasury to have approved the electrification costing at R16 000-00 per household.

“However, National Treasury is neither cited as a relevant party in the SIU’s action proceeding against Mphaphuli nor is National Treasury mentioned in the report submitted to the President by the SIU in September 2019,” said Mphaphuli.

He cited that it is unfathomable that the SIU can jump into such conclusions that the company overcharged the municipality while the client department, the Department of Mineral Resources and Energy (DMRE), is not complaining about being overcharged and there has not been such a finding by the Auditor General (AG) of South Africa.

Mphaphuli said the Polokwane High Court and the Supreme Court of Appeal (SCA) have unequivocally found that the opinions and views of the SIU are not final or determinative.

“In fact the high court explicitly stated that setting aside of the SIU’s report would have no practical effect on the ongoing civil litigation between the parties. The SIU’s statement implies that the SCA has issued a judgement that the SIU was authorised to investigate Mphaphuli Consulting and FTLM. This is not true,” he said.

Mphaphuli said despite the existence of records of court decisions in favour of Mphaphuli Consulting, which includes the SCA’s order granted in 2017, which dismisses the appeal by the municipality, the SIU has opted to deviate from factual evidence and drive a narrative that is contemptuous, false and misleading to the public.

He said the Polokwane High Court judgement made in July 2022 confirmed that there was a valid and enforceable contract between the municipality and Mphaphuli Consulting, hence it granted an order compelling the municipality to pay monies due to Mphaphuli Consulting for services rendered way back in 2017.

“The SIU’s statement has caused serious damage to the reputation of Mphaphuli Consulting by disseminating falsehoods and unfairly labelling its director as the face of corruption to a wide mainstream and social media audience locally and abroad,” informed Mphaphuli.

He said they have since written to SIU head, Adv. Jan Mothibi, to remove all the false and defamatory statements/postings and issue a concomitant public apology.

“Failure to do so, Mphaphuli Consulting will be left with no choice but to seek appropriate urgent recourse in the nearest High Court of South Africa,” he said.