SIZWE Madondo, the former CEO of South Africa’s state-owned African Exploration & Mining Finance Corporation (AEMFC) has been banned from occupying senior positions at government-owned enterprises, said City Press.
In an article republished by News24, City Press cited a judgement by Advocate Nazeer Cassim SC in a disciplinary hearing which found Madondo guilty on several charges that included dishonesty, nepotism and failing to act in the interests of the AEMFC.
“These findings [should] be forwarded to the relevant authorities to ensure Madondo is not given a position as a senior employee in any other SOE [state-owned enterprise], otherwise there is no deterrence to wrongdoing,” the article quoted Cassim to have said.
The AEMFC, which fell under the control of the Central Energy Fund during most of Madondo’s tenure at the company, operated the Vlakfontein mine that supplied coal to Eskom.
One of the deals that implicated Madondo was private company Lurco’s bid for Optimum Coal Mine, according to the article.
Lurco said in March last year that it was preparing a R1bn bid in joint venture with the AEMFC to take Optimum Coal Mine out of business rescue. It later emerged that the AEMFC hadn’t won the required approvals for the bid, including the support of National Treasury.
City Press said Madondo had authorised Lurco, to use his electronic signature in a bid to buy the Gupta-owned Optimum mine.
An investigation by Gobodo Forensic Investigative Accounting that predates Madondo’s disciplinary hearing found that, while the board had instructed Madondo in December 2018 to conduct due diligence on Optimum’s assets, he allegedly not only signed the bid for the mine, but committed the company to buying the mine, said City Press.
