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South African party will audit firm tied to Mbeki allies
The ruling African National Congress (ANC) has ordered an internal audit at the party's in-house investment firm, which is controlled by allies of South African President Thabo Mbeki, the Sunday Times reported
- Reuters
- Published: 21:32 February 24, 2008
Johannesburg: The ruling African National Congress (ANC) has ordered an internal audit at the party's in-house investment firm, which is controlled by allies of South African President Thabo Mbeki, the Sunday Times reported.
The probe of Chancellor House Holdings comes some two months after Jacob Zuma defeated Mbeki for the ANC leadership in a bitter contest that was marked by allegations on both sides of dirty tricks, vote-buying and political smear campaigns.
It will include an audit of black empowerment deals and tenders won by the firm and is also expected to look at the roles played by Mbeki, Deputy President Phumzile Mlambo-Ngcuka and former ANC treasurer-general Mendi Msimang, the newspaper said.
Black economic empowerment refers to the process by which companies, usually publicly traded but not always, give stakes to groups of blacks as part of an effort to make ownership of the economy more equitable after the apartheid era. Ernst & Young will carry out the audit, the report said. The ANC's current treasurer-general, Mathews Phosa, told the Sunday Times that the party wanted to establish the true value of the deals in question and ascertain whether there had been conflicts of interest in Chancellor House's business.
Criminal proceedings
Chancellor House has significant stakes in a number of companies, including mining and engineering companies. Msimang, an Mbeki loyalist who is married to the country's health minister, is among the trustees who guide the firm.
Phosa, a Zuma-loyalist elected into the top ranks of the ANC at a leadership conference in December, suggested that the probe could lead to criminal proceedings. "The law will have to take its course," Phosa said.
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