Sassa blows millions on 'suspect deals'

It says documents obtained by its reporters reveal that the SA Social Security Agency (Sassa) paid Resurgent Risk Management R14.3m for irregular deals, including one that resulted in a KZN security company looting the state entity's coffers. Resurgent is owned by former national intelligence agency boss Manala Manzini and its former operations head, Arthur Fraser, who are both are prominent ANC figures, the report states. The report says the paper trail also reveals that Sassa CEO Virginia Petersen intervened personally to ensure that auditing firm SAB&T irregularly won a R76m contract to conduct a three-year forensic audit at Sassa, even though it was R4m more expensive than that of another company recommended by the bid adjudication committee. The report alleges that all the deals bypassed normal tender procedures without good reason, procurement officials were kept in the dark, services were paid for without valid contracts being signed, and payments were done directly from Petersen's office. The report says reasons given by Petersen for flouting Treasury rules in appointing Resurgent included death threats against her, her family and Oliphant. Fraser said Resurgent had followed due process. Full Sunday Times report (subscription needed)