Brics event nets R2.3m for Zuma relative
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Solesa boss Deebo Mzobe is alleged to have pocketed the R3.7 million profits of a 'profit-share' Brics concert. Solesa boss Deebo Mzobe is alleged to have pocketed the R3.7 million profits of a 'profit-share' Brics concert.
Durban - Deebo Mzobe, the man at the centre of the construction boom in Nkandla, was this week exposed as a key player in a R3.7 million “profit-share” concert in Durban.
Now Mzobe’s “partners”, who were corralled into a consortium with him, have turned on him, saying he was paid R3.7m by the eThekwini council and the provincial government to host a Brics beachfront festival, but they did all the work.
A week before the Brazil, Russia, India, China and South Africa heads of state met in eThekwini in July, the municipality asked production companies to bid to host the festival.
Three companies expressed an interest: Slingshot Productions, Vuka Africa and Let’s Be Local. The city liked elements of each of their pitches and asked them if they could combine their efforts.
Then, at the 11th hour, they say Mzobe’s Solesa Productions, headed by Sthembiso Khumalo, made an appearance at a meeting at the city hall and “inveigled” its way into the job as project managers.
In terms of the memorandum of understanding between the city and the parties, it was agreed that R3m would be spent on the event, but there was also scope for “profit share”, which meant that anything under that figure would be split four ways.
However, the scheme began to unravel when Mzobe’s company allegedly reneged on the deal.
The director of Slingshot Productions, Andrew Loubser, said that throughout the planning phase Khumalo had tried to cut corners to maximise the profit.
“We had taken the specifications that the city had given and brought to the table quotes for the best-quality production within the bounds of the budget.
“Every step of the way, Khumalo hammered us to cut costs and reduce the quotes so that we could maximise the profit share that we would enjoy at the end of the day.
“That is not how I do business. I was forced to push my suppliers into a corner and compromise on the quality of the show we put on, from the stage to the sound equipment,” he added when approached for comment.
“We did this, and he settled our costs, but now he refuses to pay us the ‘profit share’ that we are owed,” he said.
“There was even talk from Solesa at one point of trying to push the city’s budget up to R5m.
“This is greed we are talking about here,” Loubser said.
The director of Let’s Be Local, Athos Euripidou, confirmed that he had not been paid what was owed to him by Solesa.
“I am still waiting on the 25 percent profit share that we are entitled to in line with the memorandum of understanding. We are still waiting six months after the fact here.
“We put this whole thing together under very tight deadlines, and because Solesa was controlling the money, they tried to cut costs at every turn.
“We were forced to squeeze artists whom we have good relationships with to drop their quotes and compromise so that they (Solesa) could maximise profit,” he said.
It is understood that, in addition to the city payment of R3m, Mzobe’s Solesa Productions was paid R960 000 from the provincial government for the same event, to ensure that all 11 official languages were represented in the line-up.
The Sunday Tribune has obtained detailed quotations from Solesa Productions that were paid out by the city confirming the total in dispute.
According to a memorandum of understanding signed by the players, each was entitled to a quarter-stake in the money remaining once all costs had been paid.
The irked consortium members are now demanding nearly R1m each from Solesa, including interest that has accrued on the non-payment of the share over six months ago.
Khumalo, understood to be an ANC backer and an Umkhonto we Sizwe veteran, pocketed a cool R2.3m.
Khumalo rejected claims that Solesa had banked all of the profit from the event, and said his consortium partners we “greedy” and “p***ed off” that the city had appointed him to head the production.
“They (the city) brought me in because of the wonderful work I had done on previous beach festivals.
“These guys were trying to milk the system, and they have been paid what they are owed.
“They are just being greedy and want more and more.”
While admitting to being politically well-connected, he insisted that he had scored the deal because of his company’s extensive experience in event management.
jeff.wicks@inl.co.za
Sunday Tribune