Simeka Holdings to probe conflict of interest in R1bn Mpisane Properties tender

Following the release of a report by the Citizen detailing the award of R988,754,774.49 tender to one Mpisane Properties to lease office space to the Government Pensions Administration Agency, Simeka Capital Holdings (Pty) Ltd (“Simeka Capital”) has announced that they will be instituting an internal investigation to establish findings pertaining to this matter.

The company has also noted with concern the contents of the Citizen’s report as well as social media commentary by various social media users resulting from a tweet by Khaya Sithole regarding the awarding of the tender.

You can read the report here.

Sithole’s initial tweet posted on Tuesday, 18 February 2020 sparked interest in the awarding of the contract and the company it was awarded to, as many mistakenly believed that the company was linked to reality TV star and controversial businesswoman Shawn Mkhize (nee Mpisane).

The Citizen discovered that the company is not linked to Mkhize’s family in any way, nor is it linked to her ex-husband Sbu Mpisane.

The company was established in 2017 and has one Leonard Mpisane Nyalunga listed as its director.

The Citizen then cited an entry on Simeka Capital Holdings’ website which contained information about Nyalunga.

Simeka has since informed the Citizen that Nyalunga is employed by Mutodo Properties (Pty) Ltd, a subsidiary of Simeka Capital.  Mutodo focuses on property investment opportunities, development and related end-to-end services.

Simeka further explained that social media commentary resulting from Sithole’s tweet contained allegations of misconduct.

“As an organisation, we take any and all allegations of misconduct seriously and endeavour to conduct our business within the ethical boundaries that govern our profession. To this effect, we adhere to principles of responsible investing and endeavour to protect our investors by adhering to appropriate industry standards as well as sound corporate governance principles,” read part of a statement issued by Simeka.

“It is therefore important that we explain our position on this matter and the nature of our relationship with Leonard Nyalunga,” they added. 

According to the company, their internal policy requires any employee who has a conflict of interest with their principal business to disclose the conflict in a timely manner. 

“These interests, however, are restrained from being in direct competition with the employer for as long as the employee is employed by the business and for a set period after that. We confirm that Leonard Mpisane failed to disclose his interest in accordance with policy and Simeka Capital was only made aware of the awarded tender when it first broke out on social media.”

The company has instituted an internal investigation to establish findings pertaining to this matter in accordance with their human resources and internal governance policies, to determine the extent of the contravention of their internal policy and the law.

“It is disappointing that one of our employees has partaken in this act as it displays a contravention of Simeka’s values and ethos. It indicates to us that he used the company’s time and resources to pursue other opportunities. We are taking the necessary steps to deal with the matter,” said Group Chief Executive Officer Cecil Maswangayi.

“With this statement, we wish to categorically refute any claims and or insinuations that Simeka Capital, its directors, shareholders and/or it’s associate companies have been awarded the tender in question,” concluded Simeka before adding, “we appreciate the inquisitive and responsible citizenry that has been displayed by our journalists. We will in due course provide a report on this matter.”

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