Taxi boss Joe Sibanyoni, president of the South African Local and Long-Distance Taxi and Bus Organisation, appeared before the Madlanga commission on Tuesday. He admitted to receiving R2.29m from a subcontractor, Tengane Thomas Ntuli, for doing no work. The payment was related to a R3.7bn Moloto Road upgrade project in Mpumalanga. Sibanyoni claimed he had entered into a "partnership" with Ntuli, which was necessary for Ntuli to meet a "30% local content" requirement to win the tender.
Sibanyoni denied allegations of extortion against him, despite admitting to receiving R100,000 a month for merely entering into the partnership. He claimed that without his involvement, Ntuli's company would not have won the tender. However, he could not point to a specific regulation that stipulates the 30% local content requirement. Commissioner Sesi Baloyi questioned Sibanyoni about the 30% local content requirement, suggesting it seemed to require locals to provide services and be paid.
Bathabile Ntuli, director of Tengane Ntuli's company, provided an affidavit stating that payments to Sibanyoni were made under duress. The company feared for their lives due to Sibanyoni's alleged history of violent operations in Kwaggafontein. Bathabile claimed that it was a normal practice for Sibanyoni's group to demand payments, and failure to comply would put one's life in danger. Sibanyoni insisted that Ntuli's company could not have won the tender without his partnership.
Despite Sibanyoni's claims, there was no paper trail to prove his deal with Ntuli. Chief evidence leader Matthew Chaskalson pointed out that if the local share was a requirement of the contract, there would have to be some documentary evidence of Sibanyoni's interest in Ntuli's company. Sibanyoni shifted the responsibility to Ntuli, saying it was up to him to provide written evidence to Sanral.
Sibanyoni's right-hand man, Oupa "Bafana" Sindane, threatened to stop Ntuli's company's operations after Ntuli failed to pay. Sibanyoni claimed that this was not done on his instruction and described Sindane's threat as "interference" in his partnership with Ntuli. The issue of protection-fee syndicates has been growing in South Africa, with business organisations appealing to the police to intervene and protect entrepreneurs.
Sibanyoni also faced questions about his involvement in paying R250,000 in legal fees for Jabu Gwabu Mahlangu, who was convicted of a taxi violence murder. He denied personally making the payments, despite evidence showing advocate Hartley Ngoato sent a message to Sibanyoni complaining about non-payment. Sibanyoni claimed that a taxi association, under which Mahlangu's father used to operate, paid the legal fees.
The commission will continue with its public hearings on Wednesday. Sibanyoni's testimony has shed light on the allegations against him, but the investigation is ongoing. The issue of extortion and protection-fee syndicates in South Africa's business sector remains a concern.
Key points
- Joe Sibanyoni admitted receiving R2.29m for doing no work in a R3.7bn road upgrade project.
- Sibanyoni denied allegations of extortion despite admitting to receiving monthly payments.
- The Madlanga commission will continue its public hearings to investigate the allegations against Sibanyoni.
