Gauteng Housing Department tender irregularities revealed

The two men at the centre of the allegations are Eugene Perumal, former Chief Director of the department, and Sibusiso Buthelezi, then the Housing Head of Department and now in the same position at the Department of Transport. Housing Department spokesperson Mongezi Mnyani said Perumal was suspended and charged in December as a result of the department\'s internal probe of his alleged illegal awarding of contracts. He said Perumal then resigned, but the department was instituting a civil claim against him over his alleged improper conduct. Full report in The Star

More revelations claim Buthelezi awarded a R5m tender to the company of Nomusa Mufamadi, wife of Cabinet Minister Sydney Mufamadi, without following proper tender procedure. A Pretoria News report says Buthelezi has acknowledged that he did not follow normal tender procedures when awarding a contract to Integrasol (Pty) Ltd, of which Mufamadi is the MD. This was to assist the transport department with the conversion of taxi permits to operating licences. He said he did not advertise the tender ‘because it was a matter of urgency’ and he was impressed with Mufamadi\'s qualifications. Buthelezi said Gauteng Transport MEC Ignatius Jacobs was aware of his decision to appoint Mufamadi without following tender procedures. However, Jacobs’ office said: ‘The MEC does not get involved in procurement processes as it would be unethical and legislation is very clear on these matters.’ They said, however, that the MEC ‘will investigate if there are any irregularities in his department and appropriate steps will be taken’. Full Pretoria News report

Meanwhile, the man who wrote the top secret report has broken his silence. The Pretoria News reports that chartered accountant Pascalis Mokupo revealed all about the investigation which, he claims, cost him his job. Mokupo\'s report found that Buthelezi signed an R75m infrastructure contract with business consortium Enterprise Connection, when the Housing Department\'s Acquisition Council had only agreed to an R44m contract. His report, released at the end of last year and never published, also found \'massive irregularities\' in tenders granted by the department\'s former Chief Director Eugene Perumal to EC. Full Pretoria News report

Incredibly, Mokupo may face criminal charges for revealing the fraud. Business Day reports that he is likely to be charged for violating the confidentiality provisions in his conditions of employment. Full Business Day report