\u201cPolitically-connected\u201d businessman Kuben Moodley is set to make R380 million thanks to a \u201csuspect\u201d debt-collection deal with the SABC. This is according to a report by the Sunday Times.<\/p>\n
The report stated that\u00a0Moodley is a former special adviser to Mineral Resources Minister Mosebenzi Zwane, and a\u00a0golf partner of Salim Essa \u2013 \u201ca\u00a0kingpin in the Gupta empire\u201d.<\/p>\n
Documents seen by the Sunday Times show that acting SABC CEO James Aguma awarded the contract to Moodley\u2019s company LornaVision last year without going out to tender.<\/p>\n
According to the deal, LornaVision would create and implement\u00a0a pilot debt collections system \u2013 getting\u00a0paid a 10% cut of 10,000 TV licence renewals a month.<\/p>\n
\u201cBut in its contract, the scope was expanded to include being paid a cut for collecting from pirate viewers, too,\u201d stated the report.<\/p>\n
The documents show that\u00a0LornaVision was paid consulting fees for its 24-month pilot upfront \u2013 before all services were delivered.<\/p>\n
Three weeks after being appointed, it invoiced the SABC a\u00a0fee of R2.1 million \u2013 which was paid.<\/p>\n
LornaVision told the SABC it would collect licence fees worth R500 million a year from 1.8 million pirate viewers.<\/p>\n
LornaVision will make an additional R375 million if it meets its pirate-viewer targets.<\/p>\n
\u201cI am told there is a great loss and LornaVision is not delivering. They are doing far worse than the debt collectors were doing,\u201d said an SABC source.<\/p>\n
The SABC\u2019s legal department warned that the contract was irregular, but those\u00a0who raised concerns were threatened with suspension, stated the report.<\/p>\n
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.<\/p>\n