Payback time on dodgy tenders
Special unit investigating irregular deals
THE Special Investigating Unit (SIU) has filed a slew of cases in court against contractors over a number of irregular tenders awarded by government departments and entities.
The SIU has listed a number of civil matters in the courts, where it is trying to recover tens of millions of rand from the contractors.
The unit said in its financials tabled in Parliament yesterday it had, in the 2015/16 financial year, lodged five civil matters in court to recoup millions for the state.
The lawsuits followed forensic investigations conducted by the SIU.
The SIU reported in its financials that it was seeking to set aside a R265-million tender given to a contractor by the State Information Technology Agency (Sita). It said the rea- son to set aside the contract was because Sita’s procurement processes were flouted.
In another case, the SIU is trying to recover R82m from a contractor because the payment was illegal. This contract was awarded in 2010.
“The plaintiff was unjustly enriched and the respondent was unjustly impoverished because the plaintiff rendered no performance as quid pro quo for the payment of this amount,” it said.
In another matter, the SIU sued a contractor for a R139.4m invalid lease agreement. Supply chain management regulations were violated in this contract.
A settlement has been reached to set aside the lease agreement and the contract declared null and void.
The SIU is also seeking to recover millions of rand from inflated prices paid for leases, renovation of government properties and security in state properties.
The Department of Public Works called for investigation into a number of contracts in 2013.
At the time the department said it found it paid R28m for six unoccupied buildings in Johannesburg.
It is trying to recover the money from the landlord, and two officials were fired from the department.
The department said it was also trying to recoup R50m in another dodgy lease. It found corruption in the lease.
The SIU and public works department are still suing Roux Shabangu in the Pretoria High Court for the multi-million rand lease building for the SAPS.
In 2013, the Minister of Public Works, Thulas Nxesi, said they had saved the state R780m by taking the matter to court.
Public Works was also instituting a civil claim of R6.3m over a lease that was irregularly awarded to a contractor.
In another claim, the department wanted to recover R3.5m for an improperly awarded contract.