Black Management Forum (BMF) president Mpho Motsei has been asked to account for more than R1.2 million in payments made to him or on his behalf over nearly two years, including stakeholder engagement payments, accommodation, travel and other expenses.
In a letter dated September 30, BMF Young Professionals chairperson and director Jeremiah Klaas requested supporting documents and explanations for payments totalling R1 228 352.15 recorded between November 2024 and September this year.
Klaas said the payments appeared in the BMF’s transaction history and that the board needed to understand the purpose, authority and supporting documentation for the expenditure. He said he had reached no conclusions and was seeking clarity so the board could account for the transactions to members and auditors.
Klaas said R599 088 31 was paid into Motsei’s bank account through 48 transactions. A further R475 582.27 was spent on hotels; R115 787.94 on flights; R14 006.84 on Uber, car hire and fuel; and R25 000 on a seat at the Progressive Business Forum Presidential Dinner.
A major concern was 33 payments totalling R486 952.78 that were recorded as “stakeholder engagement”. Klaas said the payments, made from March last year, at roughly two-week intervals, ranged from R7 332 to R28 774. The records did not identify the claims, events or documentation supporting the payments. He questioned whether they amounted to a recurring allowance and, if so, who authorised it.
Klaas also highlighted six payments totalling R83 684.73 made between June and August this year, despite no flights, hotels or transport allegedly being booked for Motsei after May 22.
The letter further questioned possible duplication of travel costs. Klaas said Motsei received seven Cape Town travel claims worth R53 120.23 between January and March last year, while the BMF paid for flights and accommodation linked to trips during the same period.
Klaas identified 23 hotel stays in Sandton and Johannesburg costing R196 050.33 and five stays in Limpopo totalling R22 172. Two bookings were described as “staycations”.
He asked where Motsei was living at the time, who approved the bookings and why some expenses were paid to him rather than to service providers.
Klaas also queried two payments of R13 932.90 made on the same day in September last year and asked whether one should be repaid.
The BMF memorandum of incorporation limits payments to directors to legitimate reimbursements, payments under bona fide agreements and obligations arising from legal commitments. Klaas noted that elected directors were not entitled to remuneration except where provisions applied to full-time executive leadership.
He requested policies, resolutions and approvals authorising the payments, together with invoices, receipts, travel records and details of engagements funded by the organisation.
He also asked whether any of the expenses were claimed from other organisations or whether Motsei received additional benefits linked to the forum.
Motsei was given until Wednesday to respond.
Klaas warned that if the explanation was inadequate, he would place the matter before the board and consider referring it to the auditors.
Motsei had not responded by the time of publication.
The dispute comes amid a governance battle in the BMF. In July, Sunday World revealed that a report by BMF stalwarts recommended action against Motsei and directors of the organisation’s investment arm over governance and financial concerns.
Motsei has rejected the findings and counter-suspended individuals he claims are attempting to hijack the organisation.
The report, chaired by former BMF leader and MK Party MP Mzwanele Manyi, found that investment arm directors allegedly awarded themselves increases without shareholder approval and declared a R31m dividend in July 2024 without conducting a solvency and liquidity test.
- Black Management Forum (BMF) president Mpho Motsei has been asked to account for more than R1.2 million in payments made to him or on his behalf over nearly two years, including stakeholder engagement payments, accommodation, travel and other expenses.
- In a letter dated September 30, BMF Young Professionals chairperson and director Jeremiah Klaas requested supporting documents and explanations for payments totalling R1 228 352.15 recorded between November 2024 and September this year.
- Klaas said the payments appeared in the BMF’s transaction history and that the board needed to understand the purpose, authority and supporting documentation for the expenditure.
- He said he had reached no conclusions and was seeking clarity so the board could account for the transactions to members and auditors.
- Klaas said R599 088 31 was paid into Motsei’s bank account through 48 transactions.
