MTN SA, still reeling from the Iran cell phone scandal, is embroiled in a new bruising battle - this time involving its legal department and a retrenched whistle-blower. The dispute between MTN and its former senior legal adviser, Violet Magagane, had been kept under wraps until this week, when the Johannesburg Labour Court heard claims of large-scale fraud involving more than R12-million. Central to the dispute is Magagane's claim that she was victimised and retrenched for blowing the whistle on alleged fraudulent transactions involving MTN's chief corporate services officer, Robert Madzonga.
The details of the alleged fraud are contained in an explosive forensic audit by Price Waterhouse Coopers. Magagane's employment at MTN came to an abrupt halt last year after she raised the alarm about Madzonga's alleged signing of 78 invoices from consultancy Nozuko Nxusani Attorneys. The law firm was hired for work apparently done by the MTN legal department. In court yesterday, Magagane described her retrenchment as a "sham" and "camouflage" for getting rid of her for "spilling the beans.
"Clearly Ms Nxusani needs to explain the lack of detail contained in the invoices."
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The report found that Madzonga:
■Knew Nxusani from university;
■Did not thoroughly check the accuracy of invoices;
■Approved invoices based on trust;
■Did not notify MTN legal advisers about outsourcing their work because he did not want to "hurt their feelings".
The report is a damning indictment of the lack of oversight in the MTN legal department. http://www.timeslive.co.za
Whenever corrupion is exposed whistlebolwers become fired.MTN needs to ensure that it communicates th emeasyres it is going to take to solve this situation before it looses its loyal customers.
ReplyDeletewe start making big wrong turns by involving friends in our business, how can u mix frienship with business?as much as you trust your friend in your personal life, it doesnt apply in business
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