MTN suspends executive for Pule scandal

MTN's chief corporate services officer, Robert Madzonga and the executives are involved in a messy fight over his alleged role in diverting the sponsorship money of the ICT indaba. In addition, allegations of abuse of power and victimisation have been made.

Madzonga is threatening legal action against former MTN SA's managing director Karel Pienaar, human resource director Themba Nyathi and general manager of business risk management Lily Zondo.

Zondo allegedly accused Madzonga of receiving some of the money paid to Pule's boyfriend, Phosane Mngqibisa, as a management fee for the ICT event last year.

Pule herself was hauled before the Parliament's joint ethics committee following allegations that funds for the indaba disappeared. In January, MTN appointed Werksmans Attorneys to investigate the sponsorship.

Accusations

In documents Business Day has seen, dated 1 February, Zondo accuses Madzonga of having benefited from the indaba. A letter, dated 5 August, was sent to MTN Group's chief executive Sifiso Dabengwa and the company's board in which Madzonga hit back at Zondo's allegations and threatened legal action.

"It is my view that the words and phrases used therein by the author may be classified as defamatory and injure my reputation as an executive member of the corporate entity and as a businessman," Madzonga writes.

He also informs Dabengwa that he is lodging a grievance against Pienaar for failing to take action against Zondo after she refused to retract the allegations. According to sources, Madzonga on 4 February, approached Pienaar in his office and Zondo was called in and asked to withdraw the allegations but she refused to do so. No further action was taken.

Sources said Madzonga also approached Nyathi with complaints about investigations Zondo conducted regarding the R15m ICT indaba sponsorship cheque and the diversion of funds to facilitate alleged bribery.

The alleged victimisation started with the initial MTN investigation: Madzonga was alleged to have signed the R15m cheque, whereas the signatories were Serame Taukubong and Pienaar.

"I humbly advise honourable chair herein of my intention to institute legal proceedings and simultaneously hereby lay a grievance against then managing director, Karel Pienaar and Themba Nyathi in his capacity as HR director," Madzonga wrote in the letter to the MTN board.

MTN has confirmed Madzonga's suspension but gave no details. "We are not in a position to divulge the nature of these internal matters, nor do we want to be drawn into any media speculation about what is essentially an internal matter," the company said.

Madzonga has confirmed his suspension.

Last month, the Hawks said they were investigating corruption charges against Pule, laid by the Democratic Alliance.

Parliament's ethics committee found that Ms Pule had "wilfully misled" it in its investigation into the controversial ICT indaba. It found that several officials of the Department of Communications may have committed perjury in the evidence they presented to the committee and colluded with Ms Pule.

Source: Business Day via I-Net Bridge