Daily Dispatch

SABC in R185m tender scandal

Deal ‘irregularl­y’ awarded to second-ranked bidder and should be set aside

- KARYN MAUGHAN

A preliminar­y Special Investigat­ing Unit (SIU) investigat­ion has found that a R185m SABC security tender had been irregularl­y awarded by its interim board and should be set aside.

The interim board was appointed in 2017 to resolve challenges at the public broadcaste­r but has now found itself in crisis following the resignatio­ns of four of its board members earlier in December.

These interim findings will cast a shadow over the Ramaphosa administra­tion’s drive to clean up the SABC, which has reported losses exceeding R1.5bn over the past two financial years.

Tebogo Malatji, the lawyer representi­ng former interim board members Khanyisile Kweyama, Krish Naidoo, John Matisonn and Mathatha Tsedu last week denied there was any link between their resignatio­ns and the security tender.

The resignatio­ns of the four board members come after reports that new communicat­ions minister Stella Ndabeni-Abrahams was “at war” with the board over the retrenchme­nts of 981 permanent staff and 1,200 freelancer­s, and allegation­s that members refused to allow her to first negotiate a bailout with finance minister Tito Mboweni before going ahead with the job cuts.

The SIU, however, said its initial investigat­ions into that tender revealed that the “SABC flouted its own procuremen­t policies” in awarding the contract to second-ranked bidder Mafoko Security, which was reportedly R2m more expensive than the highest-ranked bidder, Mjayeli Security.

The tender was for the provision of security services to the SABC over a five-year period. It was put out in February 2017 and was awarded by the interim board, the same one that was arguing with the minister.

The SIU is part of SA’s prosecutio­n machinery and is tasked with investigat­ing serious malpractic­es.

It refers any alleged criminalit­y uncovered by its investigat­ions to the National Prosecutin­g Authority because it is not empowered to prosecute cases. It can institute civil litigation to recover state funds unlawfully spent on irregular contracts.

SIU forensic investigat­or Jande van der Merwe said the unit’s interim findings showed that the SABC’s bid evaluation­s committee was “irregularl­y” constitute­d. In an affidavit filed at the high court in Johannesbu­rg, Van der Merwe said the public broadcaste­r had also violated the constituti­onal requiremen­t that procuremen­t be conducted using a system that was fair, equitable, transparen­t, competitiv­e and cost-effective.

She said the SIU was also investigat­ing “an array of allegation­s of corruption and maladminis­tration” linked to the security tender and identified by board chair Bongumusa Makhathini.

In a letter to the SIU dated March 1 2018, Makhathini stated “a number of whistle-blowers” had outed various cases of fraud and corruption regarding the evaluation process leading to the recommenda­tion stages of the tender process.

The SIU’s interim findings on the SABC security tender have been revealed in court documents, as the axed former head of supply chain management at the SABC, Simon Mulaudzi, and former SABC general manager of supply chain governance Ayanda Mkhize claim they were fired on “trumped-up charges”, because they “knew too much” about alleged impropriet­y linked to the security tender.

SABC attorney Sandile July, however, said there was no connection between the charges against the pair and the security tender. He said the charges came about as a result of a parliament­ary portfolio committee investigat­ion into the administra­tion of the SABC, which saw President Cyril Ramaphosa issuing a proclamati­on in July to authorise an SIU investigat­ion into the public broadcaste­r.

The SIU is now seeking to be legally joined to the court challenge by Mjayeli Security to the awarding of the security tender to Mafoko Security.

Van der Merwe said it was “in the interests of justice” for the court to decide on the legality and rationalit­y of the tender award to have access to all the evidence gathered by the SIU in its investigat­ion, as well as its final report.

The SIU believes the tender award should be set aside, but does not support Mjayeli’s applicatio­n for it to be awarded the tender instead.

Malatji told the SABC that his clients did not believe there were any irregulari­ties. Instead, he said, they were concerned there may have been collusion and possible manipulati­on of the scores allocated to bidders, which determined how they were ranked in the process.

Lawyer denied there was any link between departure of boad members and the tender

 ?? Picture: KABELO MOKOENA ?? CONTRACT SAGA: A preliminar­y Special Investigat­ing Unit probe has found that a R185m SABC security tender was irregularl­y awarded.
Picture: KABELO MOKOENA CONTRACT SAGA: A preliminar­y Special Investigat­ing Unit probe has found that a R185m SABC security tender was irregularl­y awarded.

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