Tender fraudsters off the hook

The Sunday Independent reports that the tender fraudster register, established in terms of the law, is blank - even though there are known examples of fraud involving tender irregularities. Passed in 2004, the Prevention and Combating of Corrupt Activities Act makes provision for the establishment of a register for tender defaulters. The legislation is aimed at cracking down on fronting in black economic empowerment companies, improperly awarded tenders, goods being sold to the government at inflated prices, officials benefiting from government contracts, unnecessary purchases and payment for services not rendered. Full report in The Sunday Independent (subscription needed) See also a Sowetan report

Despite being under investigation for alleged serious tender fraud, management group Bosasa could win another multimillion-rand government contract, notes a Mail & Guardian report. It says Bosasa Security, a company in the group led by ANC-connected CEO Gavin Watson, is one of eight companies short-listed by the Justice Department to protect the country's courts and prosecutors. 'This is incredible. The same company that could be prosecuted by the National Prosecuting Authority is now tendering to protect the NPA's offices,' an industry insider is quoted as saying. The NPA confirmed on 7 December last year that it had received a report from the Special Investigating Unit on allegations of corruption and fraud relating to tenders received by the Bosasa group from the Department of Correctional Services. Full Mail & Guardian report

President Jacob Zuma yesterday dismissed calls to probe allegations of tender fraud by ANC youth leader Julius Malema, saying he did not know the facts and would not act without evidence of wrongdoing. 'I don't have the details of what happened with this tender. Is what is being alleged true?' a report on the IoL site quotes Zuma as telling MPs during question time in the National Assembly. COPE youth leader Anele Mda asked Zuma whether he would investigate allegations that SGL Engineering Projects, which is co-owned by Malema, raked in R140m in government tenders in Limpopo in the past two years. Zuma responded he could not proceed on the basis of press reports. The report quotes Zuma as saying: 'Certainly I will act where there is corruption, but certainly I will act with regard to the information before me. I think if there is information, concrete information on what has happened, I think let it come to government.' Zuma added that if there was a problem, he was sure the Limpopo government would 'be dealing with it'. Full report on the IoL site

Staying with concerns over the awarding of tenders, Cosatu says it will soon embark on a campaign to expose individuals who win tenders through political connections and continue to deliver shoddy services, according to a SABC News report. The country's largest labour federation has also condemned the work of SGL Engineering Projects, a company associated with ANC Youth League president Julius Malema. The federation's deputy president Tyotyo James says their campaign is not about Malema, but municipalities who provide shoddy workmanship. He says it is known that whenever work has to be done, a tender is issued. James says what is surprising is that in most instances the people who win tenders to construct roads or build houses, do not even have a wheelbarrow. Full SABC News report

The controversial sale of a R250m government-owned mining stake in Limpopo - in which Malema has emerged as a key lobbyist - is to be investigated. The Times reports that the province's MEC for Economic Development, Environment and Tourism, Pitsi Moloto, promised a delegation of angry community leaders from five municipalities in the Sekhukhune district that he would probe how five consortiums with political connections were set to benefit. The secretive sale of the 30% stake in chrome mine ASA Metals, owned by the Limpopo Development Corporation, was supposed to have benefited the impoverished communities surrounding the mine. Instead, the report said, five consortiums - and only one of the surrounding communities - have been selected as preferred bidders. Those involved include soccer boss Irvin Khoza, serial empowerment player Ronnie Ntuli and the son of Deputy President Kgalema Motlanthe, Kgomotso Motlanthe. Malema, who in 2006 was a founding director in a consortium set up to bid for the stake, was also exposed as a key lobbyist. Full report in The Times

The Auditor-General is taking a closer look at how Communications Minister Siphiwe Nyanda's erstwhile business partner Sylvester Sithole makes his money, says a report in The Citizen. It notes Sithole is the sole director of Abalozi Security, formerly known as General Nyanda Security (GNS) - a company that benefited from lucrative tenders dished out to them by suspended Transnet Freight Rail (TFR) CEO Siyabonga Gama. Nyanda's family still has a 45% stake in the renamed company. The Auditor-General committed to following up the R67.8m in contracts awarded to Abalozi by the Gauteng provincial government. In a written response to questions posed by the DA's Jack Bloom, Gauteng MEC for Roads and Transport Bheki Nkosi admitted there was 'no tender process followed', 'no other companies were short-listed' and advertisements were 'not placed'. A Moneyweb report says this is in contravention of National Treasury's laws. The report notes that according to the Treasury's Practice Note No. 8 of 2007/08, 'all accounting officers or authorities should invite competitive bids for all procurement above R500 000'. Full report in The Citizen Full Moneyweb report

A company with deep links to the ANC has emerged as the key factor in the row between steel giant ArcelorMittal, and mining house Kumba Iron Ore, says a Mail & Guardian Online report. Prudence 'Gugu' Mtshali - formerly a personal assistant to ANC treasurer-general Matthews Phosa - is a director of Imperial Crown Trading 289, the shelf company that has somehow managed to snaffle prospecting rights over a residual share of the rights to the rich Sishen iron mine, getting in ahead of Kumba, and severely complicating the current corporate dispute between it and ArcellorMittal. The report says Mtshali has a string of other party-linked business interests, including links through Vuna Coal to Andrew Hendricks, the husband of former Minerals and Energy Minister Lindiwe Hendricks. Until around September or October last year, she worked full time at the ANC's Luthuli House headquarters. The other director is Archibald Luhlabo, a senior figure in the National Union of Mineworkers investment arm, the Mineworkers' Investment Company. Phosa said that Mtshali no longer worker for the ANC, having left in September 2009. 'She is no longer associated with the ANC,' he said. Full Mail & Guardian Online report