No wrongdoing attributed to Dlodlo, Maphatsoe in botched R1.7bn broadband project

Public Service and Administration Minister Ayanda Dlodlo and Deputy Defence and Military Veterans Minister Kebby Maphatsoe were reportedly named as in a report by Nexus Forensic Services as directors of BEE company ,CitiConnect Communications (CCC), which was involved in a botched broadband project for the City of Johannesburg.

Though Dlodlo and Maphatsoe were not named in any wrongdoing, the report levelled allegations against CCC, Ericsson and Ericsson SA(ESA), Sunday Times reported.

The report alleged that mismanagement and deception ruined the project which was meant to provide Johannesburg with cheap broadband services. Initially expected to cost R600 million, nearly R1.7 billion ended up being spent on the project.

Police were reportedly investigating the possibility of fraud and corruption in the contracts.

“Naïve” Dlodlo told the publication she was led to believe it would benefit Umkhonto we Sizwe (MK) veterans, further admitting she made R3 million from selling her shares in CCC. She further said she declared her shares and resigned before assuming her role as a public servant.

“I went into that transaction when I was not a public official. As soon as I became an MP I resigned from the company but retained my shares which were diluted at some point. The forensic report also attributes no impropriety on me.

“It was a lucrative deal which I wanted to be part of. It was not illegal. What we agreed was that MK cadres would be given work through CCC, which never happened. [I] would not say we were careless, but maybe a bit naïve and too lax at the time. We never scrutinised the books or the agreement,” she was quoted as saying.

Maphatsoe told the publication he joined CCC after being approached by MK veterans.

“I was not an executive director and did not earn a salary. In 2010 I resigned. When they [wound] up the company we were given our settlements. I don’t recall what I got but it was not more than R3m.”

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