Probed firm gets R500m tender

A company alleged to have corruptly benefited from multimillion-rand prison contracts has won another R500 million tender from the Department of Correctional Services (DCS). This is despite a scathing report by the Special Investigating Unit (SIU) and a probe by the Hawks into the Bosasa Group, which won the half a billion rand contract. Hawks spokesperson Hangwani Mulaudzi told The Star that the directorate had recently concluded its investigation and had referred the matter to the National Prosecuting Authority (NPA) for a decision. NPA spokesperson Luvuyo Mfaku confirmed this, but said no decision had been made yet. “We have received the file, and prosecutors are still assessing it. When we make a decision (whether to prosecute) we will communicate with the suspect, not through the media,” he said.

In 2009, the SIU found that former DCS chief financial officer Patrick Gillingham and ex-prisons national commissioner Linda Mti had had an irregular relationship with Bosasa’s directors. Evidence gathered by the SIU investigation found that the two of them had also received kickbacks at about the same time the contracts were awarded, between 2004 and 2006. The matter was referred to the Hawks and the NPA for criminal charges against those implicated. The SIU investigation found that the four contracts the DCS awarded to Bosasa had been irregularly procured. Despite those findings, Bosasa was awarded seven contracts by the DCS. All in all, nine contracts were advertised.

Two other companies, Ukwezi Holdings and Food Services, got two of the contracts, for R38.9m and R44.7m respectively, while Bosasa was awarded the remaining seven, at a cost of R500m. The contracts were awarded for the “provision and management of food services” to prisons across the country. Also covered in the contract is “maintenance of food service equipment; cleaning of food service equipment and units; and training of prison officials and offenders on food services” at 10 prisons. Correctional Services spokesperson Logan Maistry confirmed that Bosasa had been awarded the contracts. The department wasn’t aware of the Hawks’ investigation, he added. Regarding the outcome of the SIU investigation, Maistry said the matter had been referred to the NPA. Despite this, the “DCS has no reason to blacklist the said service provider”, Maistry said.

“DCS manages all its supply- chain management processes in accordance with applicable legislation and regulations. “All bids received are evaluated and adjudicated in accordance with the requirements stipulated in the terms of reference document and the evaluation criteria stipulated in the special conditions of contract,” he said. In a 2013 parliamentary response, Finance Minister Pravin Gordhan said service providers were restricted from doing business with the state when an accounting officer found that a “company or person (service provider) obtained preferences fraudulently”. A contractor was also blacklisted upon being “convicted by a court of law for having engaged in corrupt activities relating to contracts”, the minister said at the time.

The Star sent a query about this matter to Bosasa’s spokesperson Papa Leshabane on Thursday. Leshabane did not respond and was sent a follow-up email on Friday and informed that he had until 5pm on Sunday to respond. He later indicated that he was working on a response. However, Leshabane had not responded at the time of publication.