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EASTERN Cape Finance MEC Mcebisi Jonas enjoys a sound business relationship with two members of a consortium he endorsed for a R1billion drug distribution tender.

Today the Dispatch can disclose that Dumisani Lupungela and Hintsa Siwisa are two of several members of Pharmaniaga Eastern Cape (Pty) Ltd, a consortium with one hand on the lucrative 10-year Health Department tender.

The deal was signed off by Jonas, who shares past and present directorships in several companies with Lupungela and Siwisa.

This week Jonas’s office denied he had any knowledge that his two business partners were vying for the pharmaceutical tender.

But a document prepared by the Health Department for Treasury spelling out the tender details clearly shows that Lupungela and Siwisa were assigned the finance and supply chain functions respectively in Pharmaniaga .

Jonas declined to comment on the matter, except to say that he was the victim of a political agenda.

The Dispatch reported yesterday how the deal had been blocked by Health MEC Phumulo Masualle, who beat Jonas to the position of ANC provincial chairman in elections last month.

Siwisa also declined to comment and told the Dispatch to go ahead and write whatever story it chose. “I do not care what you write. You (Dispatch) have always been against us anyway,” he said.

Lupungela said he was busy in a meeting and could not comment.

A company search shows that Jonas has been a business partner with Lupungela since 1999 when they were both directors of Corporate Money Investment Managers .

They both resigned from the company but are still directors of Eastern Cape Khula Nathi Construction where they each hold 35 percent of the shares .

Jonas, Lupungela and Siwisa are also listed as active directors of Ukho Investments, which was formed in 2001 .

Other businesses that Lupungela and Jonas were involved in together include Africa Inform Business Solutions, Africa Inform Events Marketing and Communications, Ntinga Africa Business Investments and Saigent Consulting Civil and Structural Engineering.

Jonas has since resigned as a director from all of them except Ntinga.

The 2000 Code of Ethics for MPLs (members of the Legislature) states that “a member may not take a decision, or influence a decision by any structure of the Legislature to take a decision, to gain material or other financial benefits” for either themselves, their friends or family members.

The code further specifies that in terms of the procurement of goods or services, a member of the Legislature must disclose any relationship to a person or business who is considered for a contract, and recuse him or herself from such a committee or structure.

Jonas’s chief-of-staff, Nkosohlanga Mboniswa, says his boss was unaware of Pharmaniaga’s shareholders when he ratified the 10-year Public Private Partnership deal (PPP) . But the document sent to Jonas’s office listed Pharmaniaga representatives, including Siwisa and Lupungela.

Jonas signed off on the deal on May 27, just 21 days after his appointment as Finance MEC.

But Masualle subsequently refused to add his signature as Health boss, and his department wrote to national Treasury on August 27 asking them to withhold final approval.

The Dispatch also established that Masualle used President Jacob Zuma’s visit to the province last week to raise his concerns.

Provincial ANC spokesperson Mlibo Qoboshiyane would not confirm or deny that Zuma had been apprised of the tender. “It will not be proper for us to comment now as we have not met with the MEC,” he said. - By THANDUXOLO JIKA

High Court Reporter