Controversial Durban businessman Roy Moodley allegedly received a suspicious payment from a Prasa contractor in 2015.
According to reports, Prodigy Business Services paid a company belonging to Moodley over R4 million after it received a lucrative tender. News24 says this fuels speculation Moodley had a say in who got Prasa tenders. Prodigy denied the allegations.
Moodley was spotted on Friday registering for the ANC’s 54th elective conference at the registration centre for delegates at the University of Johannesburg. A picture of Moodley shaking hands with Jessie Duarte, the ANC’s deputy secretary general, circulated on social media on Friday.
Bheki Ntshangase, the chairperson of the ANC’s Durban region, confirmed that Moodley was attending the elective conference in his capacity as a member of the South African National Civic Organisation (Sanco).
We can today reveal that Prodigy Business Services, a provider of training and skills services, made at least one payment of more than R4m to one of Moodley’s companies in 2015.
The payment was made after Prodigy had earlier secured a contract from Prasa that would ultimately earn the company R82m.
This follows News24’s revelation in August 2016 that local electronics and security firm Siyangena Technologies made payments to companies linked to Moodley totaling a staggering R550m.
The payments came after Siyangena clinched Prasa contracts in 2011 and 2013 together valued at about R4bn.
Moodley did not respond to News24’s queries about the payment. He did not answer phone calls and failed to respond to emails and WhatsApp messages.
Nerishni Shunmugam, Prodigy’s managing director, said News24’s information was “inaccurate and false”. However, Shunmugam did not answer our detailed queries about Prodigy’s payment to Moodley’s company.
Shunmugam also demanded that News24 provide her with the details of our sources for this story.
Author and investigative journalist Jacques Pauw recently revealed in his book The President’s Keepers that Moodley had paid Zuma a salary of R1m a month for four months into Zuma’s first tenure as president in 2009. This additional income was not declared to the South African Revenue Service (Sars), according to Pauw’s book.
Documents seen by News24 confirm that, in June 2015, Prodigy transferred about R4.5m to Hail Way Trading, a company of which Moodley is the sole director. Hail Way Trading is the same company to which Siyangena channeled the bulk of the above-mentioned R550m.
For a company that has been earning hundreds of millions of rand in revenue from Prasa contractors, Hail Way Trading shows few signs of being a bona fide company with actual employees or its own business premises.
The company has no website, whilst the address used for registration purposes at the Companies and Intellectual Property Commission (CIPC) is the same one used for Moodley’s Royal Security, another beneficiary of Prasa contracts.
Hail Way Trading seems to have kept the filing of its annual returns up to date, but a CIPC note from 2015 stated that there was “no valid SMS or email address for [the] enterprise”.
Prodigy contract probed
One of Prodigy’s executives, Varish Ganpath, is a known associate of Moodley. Ganpath has featured in media reports that detailed how Moodley allegedly abused his relationship with members of Durban’s police fraternity.
The Witness recently reported that after Moodley and Ganpath had become embroiled in a spat over money with another Durban-based businessman, the latter was arrested on several occasions by Colonel Reuben Govender, a detective allegedly linked to Moodley.
Govender is the same policeman who recently tried to criminally charge Pauw and this reporter before the SAPS’ provincial leadership removed him from these investigations.
News24 has reliably learnt that Prasa paid Prodigy R82m between 2011 and 2016. According to Prasa’s 2015-’16 annual report, Prodigy was appointed to teach Prasa staff “customer services skills” through a programme called “My Station”.
But a leaked document from one of a series of probes into Prasa’s expenditure under former CEO Lucky Montana, which was recently published by GroundUp and #UniteBehind, indicates that Prasa flouted several of its own procurement rules and policies when it awarded the contract to Prodigy.
According to an investigation report by TGR Attorneys, one of the documents published by GroundUp, the Prodigy contract was characterised by a concerning absence of key documentation and processes that normally need to be filed and completed for such public expenditure.
The TGR report found that:
• Prasa did not follow an open and competitive tender process for the contract;
• Prasa did not seem to be in possession of documents that confirmed in writing what Prasa’s maximum expenditure on the contract would be;
• none of the individuals involved in the contract had signed declarations of interest; and
• Prasa could not even supply the investigators with the full tender document for the contract in question, among other findings.
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