MojoMotherRussia denies “dubious tender” allegation
by Herman Manson (@marklives) MojoMotherRussia MD Thando Dingaan says his agency followed normal tender processes and did nothing wrong after allegations in Business Day of 17 November 2013 named one of the agencies that merged to form MojoMotherRussia as having received a “dubious advertising tender awarded by Africa’s largest pension fund, the Government Employees Pension Fund”.
The newspaper based its story on a “closely guarded forensic report by PwC” and alleges that a tender worth “R531,555 rocketed 40-fold to R20m through a series of “irregular” behind-the-scenes machinations”.
The agency that received the tender was named in the newspaper report as Mother Russia (sic). 76 Mother Russia merged with morrisjones&co early in 2013.
Dingaan says the agency received in payment from the Government Employees Pension Fund roughly R600 000 for work completed plus production costs. The agency is currently taking legal advice to see what more it can do to clear its name.
At the time of the merger, the combined agency employed 35 people and operated in a revenue band of between R45-50 million. The 76 Mother Russia client list included Selati Sugar, the Government Employees Pension Fund, Pernord Ricard, SABC and Rand Refinery, and clients from morrisjones&co included Debonnairs Pizza, Avios, Mugg & Bean and Nestle.
The fund had suspended its principal executive officer, John Oliphant, ahead of a disciplinary inquiry. Business Day links his suspension to the allegations relating to the 76 Mother Russia tender.