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Department halts probe after leak

The Department of Agriculture, Forestry and Fisheries suspended an investigation into its procurement processes after a forensic report was leaked to the main opposition. The department had “lost faith” in Ernst & Young, the UK-based company that compiled the document, after the DA received a copy, the government said in an e-mailed statement yesterday. The report confirmed “substantial evidence of irregular contracts awarded” to Smit Amandla Marine, a division of Amsterdam-listed Royal Boskalis Westminster, the department said on October 1.

“The department has lost faith in the work of Ernst & Young and, as a result of these concerns, has resolved to put the investigation on hold,” it said. Ernst & Young is “engaging with the Department of Agriculture, Forestry and Fisheries and will comment further if appropriate”, the tax and advisory company said in reply to e-mailed questions. The forensic report found evidence of the department’s fisheries branch awarding irregular contracts to Smit Amandla Marine from 1995 to March this year. Evidence indicated that the government was defrauded of about R1.6 billion, the department said. “We don’t recognise ourselves in the initial accusations and this confirms our view,” Martijn Schuttevaer, a spokesman for the Netherlands-based Boskalis, said. “We’ve tried to get in touch with the ministry the past few months, but to no avail.”

Source: www.iol.co.za

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Department halts probe after leak

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