M&G finally allowed to publish report on SABC fraud allegations

The report, which is in the possession of the M&G, alleges corruption, abuse of power and intimidation at the SABC. It alleged Sihlali had defrauded the public broadcaster of up to R2m and that he is linked to CE Dali Mpofu through nine dual company directorships. Even though other newspapers, including the Sunday Times and Business Day, had since carried reports on the matter and named Sihlali, the M&G could not report on it as the interdict was still standing. A threatened interdict against the Sunday Times on July 22 never materialised, notes a Mail & Guardian Online report. Yesterday (Wednesday), the interdict order against the M&G was dismissed with costs in the Pretoria High Court by Judge Ferdi Preller. Among the factors that persuaded him to dismiss the order was the fact that the SABC audit report relates to how taxpayers\' money was invested, Preller said. As the public have a right to know, newspapers have a duty to disseminate news relating to allegations of corruption in public entities. The article on line runs the full original report, as it was meant to appear in the M&G of July 20. Full Mail & Guardian Online report

It also emerged that the SABC has paid millions to a Gauteng law firm, which is being investigated by the Law Society of the Northern Provinces because it is unregistered. According to the Sunday Times, SBS Incorporated received R6.1m in fees from the SABC. The investigation by the Law Society into SBS Inc follows reports on the SABC internal audit which showed how law firms received ‘suspicious payments’. The audit found the SABC lost at least R1.8m to just three law firms, one of which was Sihlali’s Sihlali Molefe Inc, which has since closed down. The report also fingered Sylvester Balinseni Sithole Inc as having overcharged the public broadcaster more than R1m. The audit report stated that ‘various suspicious payments’ were made and recommended that Sihlali, the law firms and their principals face criminal charges. Full Sunday Times report

Sihlali is also accused of milking the SA Post Office of millions in unearned fees. The Mail & Guardian Online reports that according to a draft forensic report, Sihlali’s former legal practice charged more than R6m to restructure the parastatal – an exercise that came to naught. The report says the expenditure appeared ‘fruitless and wasteful’, violating the Public Finance Management Act. The draft report was prepared for the Post Office last year as part of a controversial clean-up campaign under the leadership of then CE Khutso Mampeule. Full Mail & Guardian Online report