Khato Civils Response from Khato Civils on Mmegi article
Correspondent | Friday November 29, 2019 16:06
These articles were authored by Ryder Gabathuse who works for Mmegi newspaper and is apparently currently doing a fellowship at the amaBhungane Centre for investigative journalism, sponsored by IJHub. It is also not strange that all references in the article to alleged anonymous reports sited, are from IJHub.
Coincidentally, amaBhungane have previously attacked Khato Civils with other unsubstantiated allegations on another project in South Africa, which they hurriedly aired on Carte Blanche. The project had previously been awarded to a white-owned company, which was paid but failed to deliver and Khato Civils was appointed to complete the project. We are pleased that we are completing that project this week and we hope amaBhungane will swallow their pride, go and see the completed project and report again, hopefully, through the same Carte Blanche, to inform the public that Khato Civils delivered excellence on the project within budget and in time.
Khato Civils, a construction company and its affiliate engineering company, South Zambezi have executed a number of world class projects in South Africa, Malawi and Botswana. The company is 100% black-owned, with a diverse pool of talented, experienced, excellently well-paid engineers, construction management personnel, project management personnel and engineering designing professionals with world class experience.
Khato Civils has entered a space previously thought as a preserve of well-established white and Asian-owned companies. Obviously, and as expected, this has not augured well with established players in this space, seeing that Khato Civils is exceeding their expectations in terms of deliverance of quality works, executed on time and within budget therefore establishing itself as a strong competitor.
We have also seen that the battle for big construction business has intensified as companies from Asia, Europe and the West are chasing the massive infrastructure development projects on the African continent. This has intensified the battle for business on the continent and the large established companies have left no stone unturned in waging dirty tactics to scare off indigenous black African businesses from competing with them in this space.
Their modus operandi has been to work with corrupt politicians, journalists, non-governmental organisations, law societies, centres for investigative journalism, rogue units within some anti-corruption institutions and loose operatives on social media to destroy any company perceived as a threat in their space by peddling lies, alleging unsubstantiated corruption, blackmailing politicians and government officials to scare them from working with the companies they taint (mostly black-owned companies which are perceived with the false narrative of being corrupt, mediocre and incapable of competing and delivering quality projects), financing mercenary journalists to write false stories which should fit their intended narrative.
If Africa and African businesses don’t fight these colonial, conniving and condescending philosophies, we will continue to watch as our continent is robbed of our resources, skills, jobs and experience required for the continent to develop. As African businesses we ought to learn and strive for excellence so that we don’t fit in the narrative others wish to paint us with and use it as an excuse for denying us economic opportunities.
If you carefully analyse the intention of the author in both articles; he clearly was armed to use smear campaign, twisted facts, untruths, innuendos and insinuations to paint Khato Civils, its chairman and its affiliate company as corrupt.
He raises cases that have subsequently been adjudicated by independent and competent courts and disposed of for what they were, falsehoods. He makes unsubstantiated allegations. He quotes persons and institutions who had previously rebutted his own allegations. He repeats some of the false stories in the same articles, all intended to attempt to reinforce the false stories in the minds of the readers. This is his mission; this is what he has been paid to do as a mercenary writer.
Khato Civils has and will continue to vigorously fight all such falsehoods by all means available within the laws, including but not limited to seeking adjudication of such matters before the judiciaries in the various countries we operate. We are thankful for the level of development, sophistication, independence and professionalism of our judiciaries in the region for seeing what most of these attacks are, competitor sponsored malice to kill and scare off competition from locals and black-owned companies.
One very important tenet and foundation of the journalism profession is verification of facts and granting the right to be heard before stories are published in order to ensure fair and balanced reporting. This author did not even bother to follow such principles as he knew the truth could have been unearthed, something which could have been contrary to the wishes of his masters.
I will now address each and every allegation made in his article, though some of the issues raised have previously been addressed, but he brings them back as it helps him achieve the intended objectives of his masters.
The article alleges and insinuates that Khato Civils acquires its contracts through forging contacts with ministers and other politically influential figures in the countries where we operate.
This is totally untrue, as all our contracts have been awarded based on a very competitive process after international public tenders and independent evaluations. We obviously have not won all projects we tendered for. We have in fact lost much more that we won. To therefore attribute our little successes on unfair political influence and “influence buying” is ridiculous and defamatory.
The article alleges that (Mongezi Mnyane, Khato CEO) confirmed to having paid former minister Maele $130,000 (P1.3 million) to fast-track Khato Civils’ registration with the local procurement board. This is not true, as we have never paid Maele nor any former minister money for this exercise.
Allegations on the freezing of assets and crossing the border with $886,000 in a car boot. In fact the alleged amount at the time was a whopping $8million dollars cash in a car boot.
For those who know that the US dollars largest denomination is a $100 dollar bill, now you would need 80,000 $100 bills to fill a car boot. Why would anyone attempting money-laundering deposit the money in a bank in this day and age when financial institutions are very strict with KYC (Know Your Customer) processes?
This issue was another article that was falsely reported out of malice. We went to court for adjudication and the matter was conclusively determined by a competent court whose final ruling is publicly available. Had the reporter cared, he could have done his basic research from where he could have unearthed the truth of this matter and known that this is false.
In fact, he later in the same article, acknowledged that the judge ruled that there was no evidence of money-laundering and ordered the release of the money. We wonder then with such facts clearly in his possession what is his intention other than performing his mercenary reporting duties to bring us into disrepute. How does this now fit what he calls “serial controversy?”
Allegations on our water project in Malawi
We are very proud of our work on the Malawi project, which is a project that was awarded to us after a competitive process with some of the world’s top engineering and construction companies. We won that tender based on our experience, innovative engineering and technical soundness of our proposal.
Clearly, for a contract of this magnitude there were challenges from other stakeholders who had raised various technical issues and all these issues were dealt with through clarifications and formal court processes whose records are also publicly available.
Allegations on funding of political parties in Malawi
As a company, we support democracy in Malawi and everywhere on the continent. We believe that a thriving democracy is important for the political and social development of all countries and the African continent at large. We, as a corporate citizen believe in supporting democracy through a transparent and nonpartisan process of contributing our fair share in a legal and transparent manner and in accordance with the jurisdiction of the countries where we operate. Any donations are made in accordance with the law and company policy and when made are disclosed in accordance with the prevailing laws. If African citizens and corporates don’t support democracy through legal and transparent contributions, who will and how will the continent develop without a thriving democracy?
Allegations on our Giyani Project in South Africa
We are very proud of this amazing project, which was a five-year bulk water project that we practically completed 92% of it in two years in very difficult rocky terrain using our modern state-of-the-art technologies and engineering. We moved out of site due to extended non-payment. We are a business and we must be paid for the works we perform. No business can continue working when they are not paid for unreasonably long periods.
Allegations on SIU investigations
SIU and other investigative agencies are very important agencies that are established and mandated to enhance governance. As a company, we are very supportive of these institutions and we fully support them, as they will remain very important in society. We do fully cooperate with all governance institutions whenever they see a need to carry out investigations or obtain clarity on any matters that are brought to their attention. The author referred to an alleged enquiry that was made by the SIU on a former South African Minister of Water and Sanitation, he clearly states that both the SIU and the minister rejected this allegation when an enquiry was made to them, but he strangely lists this as part of his illusion for “serial controversy”
Allegations on Masama project and other WUC projects
Khato Civils like all other companies in this space has participated in various tenders by WUC (Water Utilities Corporation) in Botswana. We have in fact lost most of them. We have only been awarded a few. For the many that we lost, we never sponsored reporters to peddle lies, innuendos and malicious allegations on our competitors. We accepted our fate in realising that sometimes there will be other companies who will offer solutions superior to ours and deserve to win the tenders.
The author doesn’t talk of the many contracts we have lost, neither does he talk about the other companies that won many larger projects than ours, he also doesn’t talk about companies that have previously been awarded huge tenders without any competitive bids.
We will not comment on matters on WUC as they are the only ones that know the truth and can competently comment on such matters and the processes which they follow internally to award contracts.
Allegations on ‘axing government officials to force through Khato Civils’
It is our understanding that all projects are adjudicated through WUC processes. We are not aware of any government official’s involvement in the adjudication process. Tenders are publicly advertised, submissions by various companies made and independent adjudications made. How then does government officials fit it this process? As a company, we can’t comment on movement or changing roles of government officials, such matters can only be addressed by the concerned authorities in the departments concerned. To however connect such with Khato Civils is totally absurd and ridiculous.
Overall, we believe that this reporter is compromised and being used by our competitors who lost a specific tender and they are now engaging in mercenary tactics to bring our company and management into disrepute. Responsible journalism requires that reporters maintain fairness and balance in their reporting. This entails that before proceeding to report, thorough investigations must be made and the right to be heard must be granted. This reporter never bothered to do any of these as he was focused on abusing his office by reporting what his masters wanted him to report.
Allegations on Corporate Social Responsibility project in the constituency of Minister of water for P1.2 million for a school block and cemetery
It is our philosophy and a requirement in some jurisdictions that a project must benefit the local economy and communities where a project is undertaken including but not limited to involvement of local contractors, use and purchasing materials from local suppliers, engagement with local leadership and communities to identify projects which would benefit the local communities. Khato Civils has always invested part of its profits in community development projects as determined through engagement with local leaders in areas and countries where our projects are.
The minister was never involved in this decision and the project was discussed and determined before the minister was appointed in that portfolio. If the journalist had visited the local leaders of that community he could have established the truth.
Allegation that Khato Civils made significant contribution to the Botswana Democratic Party (BDP) in the just concluded elections.
Khato Civils did not contribute cash or material to the BDP in the just ended elections. Neither was there any request for such donation from the BDP. Any political donations we make in countries we operate are openly made, disclosed and made in accordance with the laws of those countries and only when written requests are submitted to us.
*Mongezi Mnyane is Chief Executive Officer of Khato Civils