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Photo: The Star

 The company was placed under final liquidation by the Johannesburg High Court recently because of the deadlock 

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• Fines for BEE fronting

A top medical supply company fronted its director's domestic worker to win more than R160 million worth of government tenders, according to The Star.

The newspaper says that Mille Net Imports cc appointed Elizabeth Tsebe as a director and 40 percent shareholder in 2007 without her knowledge.

The Star's four-month investigation uncovered that Tsebe’s benefits from her involvement in the company were not commensurate with her position as a shareholder.

This was despite the firm winning lucrative contracts countrywide largely on the basis of its “impressive” black economic empowerment credentials.

According to Mille Net’s profile, it is a “specialist manufacturer of medical consumable products and an importer and supplier of new-generation technology disposable items”.

The company had won tenders to directly or indirectly supply disposable thermometers to health departments in all the provinces over the past five years.

An independent search showed that pharmacist Corinne Ferreira appointed Tsebe, her domestic worker since 1996, as a co-owner of Mille Net five years ago.

But Tsebe’s police affidavit said she knew nothing about that appointment until last year.

She added that Ferreira just told her to sign documents for her Unemployment Insurance Fund (UIF).

Documents in the possession of The Star – including Mille Net’s financial statements, share register, tender documents and records from the government’s register of corporate ownership – showed Tsebe received neither a director’s salary nor dividends.

After information about Tsebe’s hidden shares leaked late last year, the company offered her R3m “compensation” to walk.

According to a settlement offer drafted and signed by Ferreira’s legal representative, Maritz Smith van Eeden Inc – dated October 31, 2011 – Tsebe’s golden handshake included a severance package of R24,000 and her November 2011 salary of R6,500.

Ferreira initially offered Tsebe R650,000, then increased it to R1.7m and later R3m, but Tsebe rejected the offer and demanded R10m.

Her affidavit said the money included an unpaid director’s salary, the value of dividends for her shares and “forged signatures”.

The Star traced Tsebe, 44, to an RDP settlement in her hometown of Mokopane, Limpopo, where she settled after being fired.

The single mother-of-two, the sole breadwinner in a family of six, was inconsolable.

“I just want my own money so I can move on with my life. I can’t go back. Now my life is messed up. I have no income because Corinne told the Labour Department that I resigned from work. Because of that I can’t get my UIF,” she said.

Ferreira’s lawyer told Tsebe’s legal representative that “we have been instructed by our client to make a full and final settlement proposal to your client in this letter… for her 40 percent member’s interest in the cc, based on the actual value of same as set out in the financial statement”.

Ferreira on Tuesday denied any wrongdoing, saying it was “absolutely not true. All that you are saying and what Lizzy told you is not true”.

Mille Net was placed under final liquidation by the Johannesburg High Court recently because of the deadlock between Tsebe and Ferreira.

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Mon May 20 08:08:59 SAST 2013 ::

May 23, 2012

zacoz'

welllllldone sisi......am proud...
PAY the Lady bloody scavengers
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May 23, 2012

rasefatee

jeeerrrrr they take chance blooody crooks stick to your point 10mil is still too little dont shift your focus this pinkiies think they are clever you should have demaned 40mil nxaaa
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May 23, 2012

tpaz

half a loaf is better than none
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May 23, 2012

sabza007

Good girl ! Actually raise it to R12million. These scumbags have been milking our government millions.This is a very serious fraud case. I will suggest you move out and go to unknown location because you will be ''missing'' very soon.This is mafias industry.
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May 23, 2012

nevvybaby

stick to R10m if they agree to it increase the price add another R5m ba ho tlwaela hampe.
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May 23, 2012

TKay

pay the woman whats due to her
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May 23, 2012

Bizzabo

tpaz
half a loaf is better than none
No half a loaf here...they fraudulently used her signatures, she should have claimed for 40 mill nxa.
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May 23, 2012

netsianda893

my sister dont settle for less they have used you and its payback time you have suffered a lot its your time to shine
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May 23, 2012

Sixpack

BEE policies is an attempt to distort the Free Market. This distortion will ALWAYS have negative side-effects, like what happened with the poor lady. At least this firm was competent and delivered the service that they needed to deliver. She should have accepted the R3million. Now she will get NOTHING. The company has already filed for liquidation, and so will the directors in their personal capacity (only to start up under a new name and with other dummy directors in a few months time) - nothing left for the poor woman. Lesson - if you push clever people too far, you will end up with NO GAIN!
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May 23, 2012

MommaC

Go for it Elizabeth !
About time these sods learned their lesson.
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