“Politically-connected” businessman Kuben Moodley is set to make R380 million thanks to a “suspect” debt-collection deal with the SABC. This is according to a report by the Sunday Times.
The report stated that Moodley is a former special adviser to Mineral Resources Minister Mosebenzi Zwane, and a golf partner of Salim Essa – “a kingpin in the Gupta empire”.
Documents seen by the Sunday Times show that acting SABC CEO James Aguma awarded the contract to Moodley’s company LornaVision last year without going out to tender.
According to the deal, LornaVision would create and implement a pilot debt collections system – getting paid a 10% cut of 10,000 TV licence renewals a month.
“But in its contract, the scope was expanded to include being paid a cut for collecting from pirate viewers, too,” stated the report.
The documents show that LornaVision was paid consulting fees for its 24-month pilot upfront – before all services were delivered.
Three weeks after being appointed, it invoiced the SABC a fee of R2.1 million – which was paid.
LornaVision told the SABC it would collect licence fees worth R500 million a year from 1.8 million pirate viewers.
LornaVision will make an additional R375 million if it meets its pirate-viewer targets.
“I am told there is a great loss and LornaVision is not delivering. They are doing far worse than the debt collectors were doing,” said an SABC source.
The SABC’s legal department warned that the contract was irregular, but those who raised concerns were threatened with suspension, stated the report.
SABC spokesman Kaizer Kganyago said they were not willing to discuss internal business operations, but a financial team was in place to oversee financial matters.
The full report is in the Sunday Times of 14 August 2016.