Top officials face the music over dodgy tenders

Top Gauteng transport officials involved in the awarding of tenders worth over R1-billion face disciplinary action, lifestyle audits and security checks as part of a new no-nonsense approach to root out corruption. Gauteng MEC for Roads and Transport Ismail Vadi unveiled these new, tough measures after he tabled a report in the Gauteng legislature which contains irregularities in relation to the awarding of 13 tenders, worth more than a R1-billion. The report is a product of an investigation, which was commissioned by Vadi – two months after he took office in November last year. The MEC asked the Auditor-General’s office to conduct an investigation into 13 tenders that were approved by the Roads and Transport Department between September and December last year. Through the investigation, the Auditor-General’s office found problems with contracts for:

• R900 million over three years for the construction of roads.
• R49m for security services.
• R35m for setting up learner driver testing stations and a turnaround strategy for these.
• R20m for building at the Derek Masoek Centre.
• R4m for a biometric verification centre.
• R1.3m for the intelligent number plate project.

Vadi predecessor Bheki Nkosi and his former head of department have been named in relation to the an irregular relationship with a company that was doing business with the Gauteng provincial government. Nkosi and Monama were fingered in the irregular awarding of part of the R35m tender for the driving licence testing centre and turnaround strategy. According to the report, an unnamed company got a tender from the department worth R8.5m. In the report, it is stated that: “In a memo signed on July 20, 2010, the HOD (Monama) sought the approval from the department of former MEC (Bheki Nkosi) for two of the department’s officials to attend an international exhibition and conference in India. The memo further states that all costs, except the subsistence allowance of the officials, would be covered by Vendor P (the unnamed company). The department was to cover the subsistence costs. Nkosi approved the request.” The report further states that: “In a letter dated October 22, 2010, Vendor P extended a second invitation to the HOD requesting that she nominate two department officials to accompany Vendor P to India and Canada.”

The trip was to “attend the official operation of the driving simulators that are used to test driver’s licence applicants, as well as issue driver’s licence(s) in India, and to conduct a study and analysis of a Public Private Partnership model operated by drivers in Canada”. According to the Auditor-General’s report, Monama provided the motivation for the trip to Nkosi and sought his approval. Four officials went to India and Canada between November 27 and December 8 last year. The cost for the trip of the two officials was paid for by the unnamed company and the department paid only an amount of R113 780 for one official, in addition to the subsistence allowances of the three officials. Nkosi approved the trip on November 18 last year. Nkosi promised to comment on the contents of the report after he had received a copy. Monama, however, said that the Auditor-General’s report has yet to be tabled before the Gauteng Legislature. She said she would comment when all consultative measures had been completed.

Vadi said disciplinary steps would be taken against the officials involved. and security checks. “It must be noted that no contracts were actually signed between the department and the respective companies,” Vadi said at a briefing. “The (Auditor-General) has therefore recommended that the letters of award in respect of the tenders be declared null and void. “It has also recommended that corrective and disciplinary action be instituted against selected staff members.” Vadi said he was determined to ensure integrity in procurement and that he would implement the Auditor-General’s recommendations. The department’s procurement process would also be overhauled. The report also implicates businesses in manipulating the tender processes. None of the departmental officials or the companies involved are named.