Taxi boss Joe Sibanyoni admitted to receiving R2.29 million from a subcontractor in the R3.7 billion Moloto Road upgrade project in Mpumalanga. Sibanyoni denied allegations of extortion, claiming the payment was for a partnership that helped the subcontractor meet a 30% local content requirement. The funds were allegedly paid for Sibanyoni’s participation, despite his assertion that he provided no service to the subcontractor’s mining operations.
Sibanyoni, president of the South African Local and Long-Distance Taxi and Bus Organisation, faces criminal charges for allegedly extorting Tengane Thomas Ntuli. Ntuli’s company supplied aggregate stone to the R573 project of the South African National Roads Agency (Sanral). Ntuli faced the challenge of meeting this specific local content requirement to secure the contract from Sanral’s main contractor, necessitating a local partner to fulfill the tender conditions.
A partnership under scrutiny
During cross-examination at the Madlanga commission, Sibanyoni claimed his partnership with Ntuli was essential for winning the tender. He argued that as a Kwaggafontein resident, his involvement fulfilled the local content requirement. However, he could not provide specific regulations supporting this claim, leaving the legal basis of his involvement unverified.
Commissioner Sesi Baloyi noted that the 30% local content requirement typically involves locals providing services and receiving payment. Sibanyoni acknowledged receiving R100,000 monthly without providing any service to Ntuli’s mining company, a discrepancy that raised questions about the nature of the arrangement.
Bathabile Ntuli, a company director, stated in an affidavit that payments to Sibanyoni were made under duress due to fears for their safety. Bathabile cited Sibanyoni’s history in Kwaggafontein, claiming non-cooperation could lead to danger, creating an atmosphere of intimidation that forced the financial arrangements.
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Missing evidence and threats
Despite Sibanyoni’s claims, no written evidence of his partnership with Ntuli exists. Chief evidence leader Matthew Chaskalson pointed out that if the local share was a contract requirement, there should be documentation proving Sibanyoni’s interest. Sibanyoni contended that the lack of paperwork was Ntuli’s responsibility to provide to Sanral, rather than his own.
Sibanyoni’s associate, Oupa “Bafana” Sindane, allegedly threatened to halt Ntuli’s operations over unpaid fees. Sibanyoni denied authorizing these threats, describing them as interference in his partnership with Ntuli, while the subcontractor’s operations were reportedly halted despite Sibanyoni’s denial.
The case highlights the growing issue of protection-fee syndicates in South Africa, where businesses face demands for a share of project profits from dangerous groups, with business organisations constantly appealing to the police to intervene and protect entrepreneurs.
Legal fees and taxi violence
The commission also examined Sibanyoni’s involvement in paying R250,000 in legal fees for Jabu Gwabu Mahlangu, convicted of a taxi violence murder. Sibanyoni claimed he facilitated payment through a taxi association, not personally, citing that the association was assisting to a particular extent after the Mahlangu family approached him.
However, evidence suggests Sibanyoni may have also facilitated legal fees for Tshegofatso Richmond “Morwa” Makofane, another individual convicted of taxi violence-related crimes. Sibanyoni denied this, despite messages from advocate Hartley Ngoato suggesting otherwise, with the lawyer noting the work was originally allocated to him by Sibanyoni.
