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Minister mulls tender-fraud report

ADRIAAN BASSON | JOHANNESBURG, SOUTH AFRICA - Sep 17 2009 16:33

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The Special Investigating Unit (SIU) has handed Correctional Services Minister Nosiviwe Mapisa-Nqakula a docket on what may be one of South Africa's largest cases of state tender fraud to date.

Mapisa-Nqakula's spokesperson confirmed this week that the SIU had finalised its investigation into the awarding of tenders worth over R1-billion by the prisons department and that it was currently on Mapisa-Nqakula's desk.

"[Mapisa-Nqakula] is currently considering the contents of the report as well as its recommendations in so far as such recommended actions are within the power of the department of correctional services and the ministry," said Sonwabo Mbananga, the minister's spokesperson.

The bulk of tenders scrutinised by the SIU was awarded to controversial facilities management company Bosasa Operations and companies within the Bosasa group during the tenure of former prisons boss Linda Mti.

Mti is currently heading the security department for the Soccer World Cup local organising committee.

Bosasa is headed by the politically connected Eastern Cape businessman Gavin Watson.

The Mail & Guardian reported in July that the prisons department's contract with the SIU had lapsed on March 31 and that it was not renewed by Mapisa-Nqakula or suspended prisons boss Xoliswa Sibeko. By then the minister had not received the final investigations report from the unit and her spokesperson did not rule out the possibility that a new deal with the SIU may be negotiated.

It is not yet clear what the SIU's findings were, but Mbananga gave a hint in his statement by saying: "The Special Investigation Unit will interact directly with the National Prosecuting Authority (NPA) should further actions such as criminal prosecutions be necessary."

Legislation governing the SIU makes provision for the institution of civil proceedings by the affected department against service providers and government employees found to have defrauded the state.

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The SIU is also obliged to hand to the NPA any evidence of alleged criminal conduct for possible prosecution. The NPA may then decide whether further investigation by the police is necessary.

Former president Thabo Mbeki mandated the SIU to probe allegations of tender-rigging in the prisons department when he signed a proclamation authorising the investigation in November 2007.

In February the M&G revealed the extend of the corrupt relationship between Bosasa and the prisons department by publishing email correspondence between a senior Bosasa employee and the department's former finance chief, Patrick Gillingham.

The documentation proved that Bosasa had access to tender documentation for various prisons contracts totalling hundreds of millions of rands before other suppliers.

Mapisa-Nqakula also indicated this week that she was not yet sold on the idea of her department funding the construction and operation of four privately-owned prisons. After reports that she had cancelled the tender process for the construction of prisons in Paarl, Nigel, Klerksdorp and East London, Mapisa-Nqakula reacted speedily by saying she cannot "interfere with a legal government process".

However, she listed numerous difficulties with the model whereby private consortiums would build and run the facilities, and government would pay them off over a period of years.

This is a serious diversion from the Mbeki's regime's commitment to build more prisons to take the pressure off heavily overcrowded facilities. Since 2004 Mbeki included the building of prisons as an example of government's job creation in his state of the nation addresses.

Mapisa-Nqakula will take into account issues such as healthcare, safety and education in determining the future of the projects.

Bosasa Operations is part of one of the four consortiums gunning for the prisons contracts. The Umtya Nethunga consortium is led by construction company Group Five and the American corrections management firm MTC.

Mapisa-Nqakula is yet to report back to Parliament on the outcome of an investigation done by the Public Service Commission into allegations of impropriety against Sibeko. The prisons boss was suspended in July after it was revealed that she rented a private house in the upmarket Woodhill Golf Estate in Pretoria while her official residence in Pretoria was empty.

TOPICS IN THIS ARTICLE

People

Nosiviwe Mapisa-Nqakula

Organisations

Bosasa Operations

Comments

And do you think this is surprising ?

Pasta Bag on September 17, 2009, 6:02 pm

Nqakula you are doing a pretty good Job. One guy back home stole a loaf of brown bread and a can of coke. He spent 1 year in jail before he was sentenced. What a waste of tax money. Bread and Coke cost about R15 but Government spent more than R5000 on that guy

sechaba Motloung on September 17, 2009, 7:15 pm

"The Special Investigating Unit (SIU) has handed Correctional Services Minister Nosiviwe Mapisa-Nqakula a docket on what may be one of South Africa's largest cases of state tender fraud to date"
Doesn't this just say that they've finished the investigation? Surely that could mean that their docket reports that they couldn't find any wrong-doing?

"It is not yet clear what the SIU's findings were, but Mbananga gave a hint in his statement by saying: "The Special Investigation Unit will interact directly with the National Prosecuting Authority (NPA) should further actions such as criminal prosecutions be necessary.""
That's like saying: "I haven't been broken into yet, but if I do get broken into I will call the police"

Completely pointless statement and using the word "hint" is giving it a negative denotion.

Yet again another Bassonn article with zero substance or meaning.

JT Simons on September 17, 2009, 7:33 pm

But do you think they will actually DO anything with the corrupt individuals? Apart from a stern lecture at Lithuli house?

Confiscate their assets, and kick them out of the country. Irrespective of their struggle credentials.

Sinudeity @gmail.com on September 17, 2009, 7:45 pm

The recession in S.A was manly created

Patrick Mahanuke on September 17, 2009, 7:58 pm

Three things. One, Arrest the bastards and take away whatever they have made as proceeds of crime. Two, what do you expect when the wife of the Minsiter in the department is a commissioner in the same department.

Three, I don't get it, how does the parliamentary porfolio committee blame this much on the department of prisons. They don't arrest people, police do.

Ted sigonyela on September 17, 2009, 9:24 pm

Ted, members of parliament in SA are appointed by the parties and not directly elected by the people so don't expect anything from these investigations. If a member of parliament try to do anything to these people, that person will be recalled by the party. These scenes are being played out everyday all over Africa and nothing happen to these people. Take a look north to Nigeria with the banks in that country and how many will go to jail?

Sterling Ferguson on September 18, 2009, 12:39 am

Is Gavin Watsons perhaps related to Luke Watson?

@Sinudiety, there are certain factors to consider. For example, a 1st-time offender who has a Masters in what he does might receive just a warning. Also, making one 'mistake' does not make one incompetent. As for what happens to those deserving a prison term.....I dunno

Johncarlos Biza on September 18, 2009, 7:07 am

Johncarlos: Uneducated person steals a cellphone, 10 years in prison. A person in government with a degree/political connections, steals millions from the tax payers, gets a promotion.

Sinudeity @gmail.com on September 18, 2009, 10:18 am

JT Simon, I agree with you, what is written in this article is not facts and it has zero substance.

Tman Lee on September 18, 2009, 10:21 am

ANC is going to win the fight against crime in two years time.....

Mbulelo Dyasi
in his personal capacity

Mbulelo Dyasi on September 18, 2009, 10:34 am

"Uneducated person steals a cellphone, 10 years in prison. A person in government with a degree/political connections, steals millions from the tax payers, gets a promotion"...sinudeity, sad but true hey, they get a promotion or redeployment. This is just sickening.

xolelwa maqungo on September 18, 2009, 11:11 am

Sinudeity @gmail.com

"But do you think they will actually DO anything with the corrupt individuals? Apart from a stern lecture at Lithuli house?"

please giv us examples of this? did you ever consider that some accusations was just politics at play?

May you please giv us examples proving that ANC only lectures corrup people and sweeps everything else under the carpet?

please give us examples

2boy The One on September 18, 2009, 11:54 am

@ ANC is going to win the fight against crime in two years time.....

Mbulelo Dyasi
in his personal capacity
Mbulelo Dyasi

.................................................................

Mxim...........!!

Are you DAY-DREAMING?Oska-phuma monna!

-----------------------------------------------------------
@ 2boy The One !

"May you please giv us examples proving that ANC only lectures corrupt people and sweeps everything else under the carpet?"

Come on Dude!
Are you alive?Were you out of PLANET [EARTH] for the past 10 years!

"ANC created criminals" have their own way of getting with corruption, s-pecially when they are favored by the dominant individuals or those with more influence in decision making!

So,please stop pretending, if I were to remind you...I would spend another 10 years with such x-amples!

"Tyd is geld fols"!

Take it or leave it!

GONONDER OMKHULU on September 18, 2009, 2:46 pm

@ 2boy The One !,you got a brain for an arse.With people like you the ANC will really rule until 'Jesus Comes back'.

The SIU should have powers to prosecute these a-holes.If not refer the case to the police.The Minister won't do anything except lock up the report and pray that we'll get over it very soon.

'Politics @ play' you have every stupid reasons to try and bury your head in the sand and NOT see how rotten your ANC is.Please don't do that here gimpy.

Evans Mazi on September 18, 2009, 3:08 pm

Examples? Travelgate anyone? How many, if any, of those people have been prosecuted for blatantly stealing the food out of our children's mouths?

From people in government awarding tenders to their cronies and family members, to the nurses at clinics who SELL what is suppose to be FREE baby formula to spaza shops... ANC = A Nation of Criminals! Is it any wonder now that people are stooping to buying infected spit from TB sufferers so that they can cheat their way to the measly R1000 for a temporary grant? Don't even get me started on the women who fall pregnant just for the R240 child grant. But nooo.. if the parents of a poor government school want to pay their brilliant maths teacher a little bit extra so that she will stay in the profession and continue educating their children, they are not allowed to do that! Last time I checked there was nothing wrong with rewarding people with more money (or at least a decent living wage) if they delivered on their job. But in SA its who you know, not what you know. Where will this end? We must judge them on what they DO not on what they SAY. And its a joke that the so called leader of the communist party has to drive around in a R1 million car! What has he done to deserve that car? Has he delivered a skilled labour force to service our economy? When he does that I will buy him a fleet of luxury cars.

Maylani Bezuidenhout on September 18, 2009, 3:35 pm

2boy: The travelgate 4? Serving in national government? As an example.

Sinudeity @gmail.com on September 23, 2009, 9:56 am

Fcuk me there are bloody stupid people out there. Oh, and Evans, it's an ass for a brain, not a brain for an ass. Fcuksakes. Forget about the ANC ruling forever, they are just too corrupt. SA will collapse in complete chaos before long. The truth is, this is just the tip of the ice berg. You must remember these are the fruad issues that have been so obvious that the ANC could not possibly just leave them alone. What about the billions of rands stolen that have NOT been found out. Tman Lee , are you fcuken mad or something. How much more do you need to know you are being screwed at every turn. There is enough in this article to make a grown man cry. This "tender fraud" has been investigated since 2007. How much do you think the Watsons and thier cronies have still stolen since then. It is now 2009, and they are still pumping. The Gov must stop fcuking with this lot, arrest them all. Freeze all local and international assets. Free up court time and capacity to focus on the investigation completely. Have everyone sentenced before the world cup begins.

Apocalypse Now on November 20, 2009, 9:32 am

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