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As Mahoai’s appointment caused a maelstrom, it seems none of the critics is aware that after Mahoai realised that Simeka Group Pty Ltd/JV Regiments Capital Pty Ltd was irregularly appointed he took the initiative to approach the Pretoria High Court to review, set aside the company’s appointment and declare the award constitutionally invalid.

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Sizwe sama Yende

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Newly appointed Limpopo Treasury MEC, Kgabo Mahoai, was cleared by the Bloemfontein Supreme Court of Appeal (SCA), for a R118 million payment he approved when he was director-general of the Department of International Relations and Cooperation (Dirco).

However, critics dredged up the matter this week to question Premier Phophi Ramathuba’s wisdom for appointing Mahoai into a critical cabinet post.

Dirco minister, Naledi Pandor, dismissed Mahoai in 2021 for gross negligence, gross dereliction of duty and breach of legal obligation, and grossly irregular, wasteful, and fruitless expenditureafter he approved the payment to Simeka Group Pty Ltd/JV Regiments Capital Pty Ltd.

Simeka Group was appointed as  “a development partner, for the design, construction, operation, maintenance and finance of the suitable and sustainable office and residential accommodation for the South African Diplomatic Missions in Manhattan, New York City” in May 2016.

When Mahoai arrived at the department as acting DG, the JV had already been appointed albeit in a process fraught with irregularities. He approved the payment in good faith as motivated by a chain of officials in the department and with the existence of a contract between the department and the JV.

As Mahoai’s appointment caused a maelstrom, it seems none of the critics is aware that after Mahoai realised that Simeka Group Pty Ltd/JV Regiments Capital Pty Ltd was irregularly appointed he took the initiative to approach the Pretoria High Court to review, set aside the company’s appointment and declare the award constitutionally invalid.

The high court dismissed Mahoai’s application on the grounds of being lodged late but the SCA considered the merits of the case and ruled in the department’s favour on June 14 2023 – long after Mahoai had been dismissed.

Speaking on condition of anonymity to The People’s Eye, an insider said that the only thing that Dirco had to do was recover the money.

“The SCA vindicated him. He was maliciously charged. Mahoai did not steal the money or act negligently. The problem was that the service provider was not appointed properly by his predecessor before he arrived at the department,” said the insider.

“Public finance is Mahoai’s speciality hence the SCA ruled in his favour. Unfortunately, the ruling came after he had left the department,” he said.

Mahoai declined to comment. He said he did not want to prejudice a Labour Court application to review and set aside his dismissal.

The SCA ordered that:

·  The award of the tender for the appointment of a development partner

for the design, construction, operation, maintenance, and financing of a

suitable and sustainable office and residential accommodation for South

African diplomatic missions in Manhattan, New York City, New York

pursuant to a request for proposal (DIRCO 10/2015/16) to the joint venture

comprising Simeka Group (Pty) Ltd and Regiments Capital (Pty) Ltd is

declared constitutionally invalid and therefore unlawful;

·  The award of the tender referred to in paragraph 2 of this order is

reviewed and set aside;

·  The Project Management Agreement concluded between the

Department of International Relations and Cooperation and Lemascene (Pty)

Ltd pursuant to the award of the tender is declared to be of no legal force and

effect, reviewed and set aside;

·  The respondents, jointly and severally, are ordered to pay the costs of

this application, including the costs of two counsel where so employed.

Mahoai is a former Limpopo Public Service Commissioner. After his dismissal he retreated to his region, Waterberg, and was serving as the regional deputy chairperson of the ANC until Ramathuba thrust him to the forefront this week when he appointed him to the position of Finance MEC.

Ramathuba re-appointed Basikopo Makamu as Cooperative Governance, Human Settlements and Traditional Affairs MEC. She also appointed Mavhungu Lerule-Ramakhanya into cabinet as Education MEC,  former Elias Motsoaledi Municipality Speaker Dieketseng Masesi-Mashego (Health), Florence Radzilani (Social Development), Jerry Maseko (Sport, Arts and Culture), Tshitereke Matibe (Department of Economic Development), Sebatolo Rachoene (Department of Public Works, Roads and Infrastructure), Nakedi Kekana (Department of Agriculture and Rural Development) and Violet Mathye (Department of Transport and Community Safety MEC).