Claims of whistleblowers being targeted in BEE company set up by Shell and Barloworld

A routine Labour Court hearing for condonation of late submissions by a dismissed driver this week contained some explosive allegations of fraud and mismanagement at Lociware, a joint venture BEE company set up by Shell and Barloworld to provide high end shuttle services.

Former Lociware driver Patrick Maduna claims in papers before the Labour Court that he was dismissed for blowing the whistle on financial mismanagement and fraud by two executives who have since left the company.

Lociware was launched in 2017 by Shell and Barloworld Siyakhula as a BEE empowerment deal for drivers who previously worked at Avis, part of Barloworld. One of the main clients was Shell Downstream SA.

The new company, 100% owned by a trust, was set up to provide high-end shuttle services to Shell and other clients.

Drivers were encouraged to transfer from Avis to Lociware on the understanding that they would receive dividends from the company.

This never happened, according to Maduna, who says he was dismissed in November 2022 after making protected disclosures about mismanagement and fraud at the company.

None of the intended beneficiaries have received any dividends or audited financial statements from Lociware despite requesting these on several occasions, he says.

Maduna’s court papers claim three other workers were dismissed by Lociware for questioning the company’s lack of dividend payments and refusing to provide financial statements.

Lociware’s response

Maduna’s allegations have not yet been tested in court, and Lociware’s replying affidavit in the case focuses on its opposition to Maduna’s late court filings.

Lociware’s papers ask for non-condonation and that the case be thrown out. (Maduna’s response to this can be seen here.)

The main case will likely be heard next year.

The Labour Court this week excused late submissions by Maduna, who is claiming unfair dismissal and payment of roughly two years’ salary.

Explosive allegations

What is of more interest are the allegations of wrongdoing contained in Maduna’s founding affidavit.

Maduna’s affidavit says criminal complaints were lodged in 2021 with the South African Police Service. He says two weeks later he was shot at during a high-speed chase on the N1 highway in Johannesburg, and in 2022 he received suspicious food parcels which he argues was an attempt to intimidate him.

His court papers claim the beneficiaries of the trust that owned Lociware were promised a dividend by 2020, three years after the company started operating.

This never happened, nor were there any meetings between the trustees and the beneficiaries.

Maduna, who was promoted from driver to health and safety manager in the company, says he was excluded from executive committee meetings after demanding audited financial statements. He then recommended that attorneys be appointed to resolve the outstanding issues with the Lociware Trust, but this was apparently also refused.

No bank account

A November 2020 Promotion of Access to Information Act (Paia) request for information on the Lociware Trust received a response from the trust’s attorney saying there was no bank account, nor any financial activity relating to the trust, hence no financial statements could be provided.

“The initial trustees of the Lociware Trust had failed to comply with the provisions of the Trust Deed by not opening a separate trust banking account after the Trust was established,” says Maduna’s affidavit.

This further confirmed “that there was no intention on the part of Lociware to declare any dividends or provide any financial benefits to the beneficiaries”.

‘Insolence, incitement’

In March 2021, Maduna was charged with “gross insolence” and “incitement and/or conduct detrimental to the maintenance of good order” for allegedly showing disrespect to the general manager, Gerhard Martin, and inciting fear among employees over imminent job losses.

He was found not guilty on both charges.

Despite this, the company chose not to reinstate him to the executive committee.

The matter was also reported to the B-BBEE (Broad-Based Black Economic Empowerment) Commission on several grounds, among them failing to inform the trust beneficiaries of their expected entitlement.

The affidavit also makes claims of inflated invoices being submitted to Shell for services not performed.

Lociware had generated revenue of around R80 million in its first five years of existence, but this was in actuality for the benefit of a select group of individuals and not the beneficiaries of the trust, claims Maduna.

In October 2022, Maduna found himself hauled up on a second disciplinary charge of hacking.

This was apparently based on a mistranslation of a covert recording on a GoPro camera with the words “Inkunzi Malanga” – which was translated as “hacker” when in actual fact it means someone who is experienced and skilled, says Maduna’s affidavit.

He was found guilty of this charge and summarily dismissed.