Prominent ANC Youth League leaders should be made to account for millions of rands that went missing from the organisation’s investment wing Lembede Investment Holdings, and its subsidiary companies.
But the league’s executive has decided to sweep the report under the carpet and not pursue individuals who may have abused company funds or violated the Companies Act, which is a criminal offence.
The 65-page Gobodo draft report, which the Sunday Times has seen, has uncovered a litany of financial irregularities that appear to have been the order of the day since the formation of Lembede Investment Holdings in 2000.
Lembede was set up by the league to help to create business opportunities for young people and to free the organisation from financial dependence on the ANC main body.
The Gobodo report has recommended that several former league leaders be questioned in relation to the transactions and monies they handled.
Those who have been asked to account include former leaders Lunga Ncwana and Songezo Mjongile, who were high-profile associates of slain mining magnate Brett Kebble, former treasurer Pumezo Mqingwana, outgoing Lembede CEO Lonwabo Sambudla, and interim chief executive of the newly created National Youth Development Agency, Malose Kekana.
Businessman Sello Rasethaba, who was also a close associate of Kebble and a friend of the league’s leaders, should also be questioned, the report says.
League president Julius Malema initiated the probe after he publicly said last year the company must be disbanded. The ANCYL appointed Gobodo Incorporated in October last year to determine if there was any substance to the allegations of misuse of Lembede funds for personal gain.
Lembede’s new board, under the chairmanship of current ANCYL treasurer-general Pule Mabe, released just two pages of the report on Thursday. It only mentioned the fact that the report found that Lembede had no audited annual financial statements and that the previous management failed to keep accounting records.
Justifying his statement that no criminal charges would be laid against anyone, Mabe said the report did not point fingers at anyone. Although he said no further steps would be taken to address possible corruption, the report clearly states that the Companies Act has been violated.
“We were never interested in personalities but wanted answers on whether Lembede was doing what it was formed for, or not. We have looked at the conclusions and want to implement the recommendations,” Mabe said.
The draft report tracks 32 deals worth at least R436-million that involved Lembede Investment Holdings and its subsidiaries, but it does not reflect the current status of any of those deals. It also features many typographical errors and appears not to have been subjected to a final edit before the league’s leadership decided to release only certain details and then close the probe.
Nine of the deals that Lembede struck are in the mining and resources sector, four are in telecoms and technology, and the rest are in fields including finance, fishing, forestry and engineering.
Contrary to what Mabe said earlier this week, the report proposes follow-up inquiries with current and former Lembede officials and repeatedly records a lack of documentation and information to fully understand the scope, value or outcome of the deals.
Among other things, Gobodo said:
Mjongile has to further explain what happened to the R200000 reported to have been received from Fibretek deal.
Mjongile told the Sunday Times yesterday that, at the end of his term as Lembede CEO, he reported and handed over “everything to the ANCYL national executive. I was never contacted by Gobodo. If they needed clarity they would have contacted me.”
Asked whether he had seen the report, he said: “I do not know what you are talking about.”
Outgoing Lembede CEO Lonwabo Sambudla confirmed that the auditors interviewed him but this had had nothing to do with his period as CEO. He said he would hand over “everything” when he leaves, adding that, as chief operations officer, he had inherited problems left by the organisation’s previous managers.
Kekana yesterday said he had never been a director or a shareholder of Lembede or its CEO, although the report clearly states that he was head of PYIC, which is Lembede’s associated company. He said he has “not been privy to any report nor have I been contacted for any investigations”.
Mabe said Lembede’s assets would be consolidated into a trust.
Sunday, August 2, 2009
ANC Youth League and the missing millions
Ghana Pundit Headline News
Pan Africa News
Peacefm Online - News with a vision
The Times - World News
The Times - Africa News
Pambazuka News :Emerging powers in Africa Watch
AfricaNews - RSS News
The Zimbabwe Telegraph
BBC News | Africa | World Edition
My Blog List
Guest Post: Financing Wind Power Development in Sub-Saharan Africa: From One Donor to Many - *This guest post is by Yanning Chen, PhD candidate at Johns Hopkins SAIS. This article first appeared on Agenda for International Development (www.a-id.or...1 week ago
A Leopard can’t change its skin: PNDC versus Rev. Charles Palmer Buckle, NDC versus Rev Martey & Otabil - The Catholic Standard, before it was banned by the PNDC government of Jerry John Rawlings in 1985, was Ghana’s oldest private newspaper, owned by the Catho...1 year ago