The North West Development Corporation (NWDC) places on record the facts outlined below in response to articles published in The Mahikeng Mail on 3 and 10 August 2018 and on Bojanala Fm on 22 August on the matter of Tokiso Security Services.

On the matter of Tokiso Security Services being a subsidiary of the NWDC:

• The Provincial EXCO resolved during 2017 that the NWDC provides a consolidated security services to provincial government departments as an opportunity to reduce high existing costs and streamline the provision of security services
• When the project commenced in April 2017, it was the original intention of the NWDC to establish a Security Services subsidiary for the NWDC.
• The further intention was to, over time establish an integrated provincial security provision service accommodating all qualifying security service providers for the purposes of empowerment and job creation. This was to further enhance insourcing from the province’s SMMEs and cooperatives as well as encourage skills development.
• As the project unfolded it became clear that it was not feasible to establish Tokiso as a subsidiary of the NWDC due to a number of unforeseen challenges and laborious compliance requirements; NWDC and Tokiso therefore entered into a service provider / client relationship
• As a result, the relationship between the NWDC and Tokiso Security Services indeed became that of a client/service provider, as mutually agreed upon.
• Therefore, Tokiso Security Services is currently a legally-appointed service provider (agent) of security services to and on behalf of the NWDC.
• In line with a client/service provider relationship, NWDC pays Tokiso according to invoices submitted for security services rendered.
• The NWDC endorses and corroborates the statement by Abel Naphtaly, owner of Tokiso, expressed in the 3 August 2018 article published in The Mahikeng Mail that he holds strong views against any act of corruption.
• The NWDC not only shares this sentiment that there was no intention or acts of corruption engaged in and also takes a strong view against such behaviour.
• During the entire process it had been the intention of both parties to uphold and follow unquestionable ethical and legal business practices.

On the matter of the Service Level Agreement

• When the project commenced in 2017, it was the intention of the NWDC to buy shares in Tokiso Security Services and convert it into a subsidiary, which was later found not to be feasible.
• Both parties then agreed on a contractual relationship which has resulted in the current status quo of client / service provider.

The NWDC has a strict Business Code of Ethics Policy in place, which all its employees are subjected too. In upholding this principle and policy, should any employee ever act against or contradict these policies, measures are in place to deal with this, such as consequence management and disciplinary processes.
Says NWDC CEO Tshepo Phetla: “The NWDC as a corporation and its Board of Directors relentlessly strive to uphold the highest standards of ethics and business practices in the execution of our mission to contribute to the economic growth and transformation of the North West Province. The NWDC remains committed to uphold irreproachable ethical standards and business practices in line with all applicable legislation and codes of conduct.”

Enquiries:
Sam Mudramuthoo, M&C Manager, NWDC
017 422 0067/8 or 082 879 0911