Grant millions blown on VIPs
Little-known township security firm given huge contracts without tender
THE South African Social Security Agency blew more than R10-million meant for the poor on bodyguards from a little-known security company to protect social development spokeswoman Lumka Oliphant and senior officials.
A Sunday Times investigation has established that Vuco Security Solutions, based in KwaMashu township outside Durban, was awarded the multimillion-rand deal.
Sassa pays grants to more than 15 million recipients and has a budget of R113-billion.
Documents seen by the Sunday Times confirm that among the Vuco payments approved were:
R1.1-million “for close protection services” for Oliphant and her family;
R2.9-million “for close protection services” for Sassa CEO Virginia Petersen and Renay Ogle, general manager for fraud management and compliance. An arrest was made after Petersen received a death threat;
R95 460 per month since October last year to protect a whistle-blower from KwaZulu-Natal and his family;
R45 000 for erecting a fence, R17 000 for a toilet, R54 000 for a wall, R30 500 for a stoep and front gate pillar, R15 000 for an electric gate; and
R206 000 for a luxury Range Rover for Andile Khanyile, who is the head of operations for Vuco and often accompanies Petersen as her “security adviser”.
Khanyile confirmed to the Sunday Times this week that he has a criminal record for drunk driving, which means he is not allowed to carry a gun. He claimed to have resigned from Vuco last month.
Documents seen by Sunday Times reporters show Petersen instructed that most of the contracts bypass normal procurement rules and be funded from her own office.
Apart from the security contracts, catering bills for ministerial meetings, flights and luxury travel for advisers are all approved and paid for from Petersen’s office, often signed by her personally.
No expense was spared for Khanyile, who often went on trips with Petersen. These trips included:
Travelling to Cape Town on January 2 during the festive season for “security matters”;
Travelling to Durban on September 5 for a ministerial imbizo;
Hiring a luxury Range Rover during a trip to Durban in December 2013 that was extended to include the Christmas holidays. On official forms, the reason given for the trip was to accompany Petersen “to fulfil her duties in KZN and surrounding areas”, and included Khanyile’s stays at the Protea Waterfront in Richards Bay, Tiger Lodge in Jozini with romantic views of Jozini Lake, and the Sun Coast and Elangeni Maharani hotels in Durban. The bill for the Range Rover alone for 29 days came to R206 000 — deemed by the official who approved it to be “in accordance with Sassa policy”; and
A return flight to Kimberley to accompany Petersen on a ministerial outreach programme in Kuruman on December 4 2012.
Further documentation suggests this is the tip of the iceberg. A raft of invoices for hundreds of thousands of rands each show Sassa pays for anything from vehicles to rifles, pistols and cellphones. It is unclear why a security company would bill its clients for these items. The bills included:
R20 500 for VIP protection officers during the day;
R21 500 for VIP protection officers during the night;
R20 500 for a vehicle to be on stand-by; ý R14 000 for armed reaction; ý A R16 500 monthly management fee; ý R2 200 for rifles; ý R1 300 for pistols; ý R 3 400 for binoculars; and ý Thousands of rands’ petrol. When Vuco Security boss Wayne Ndlovu was approached for comment, he claimed he did not know what the Sunday Times was talking about but later said: “Speak to Sassa” before slamming the phone down.
Oliphant said: “Close protection is only utilised if an official is reportedly threatened. After an initial assessment done by the security division, the matter is usually referred to SAPS crime intelligence for a threat analysis and assessment.”
She said Petersen needed bodyguards because she was tackling corruption. “Until the CEO arrived, very
’Security adviser’ has a criminal record for drunk driving, meaning he is not allowed to carry a gun
little or no work had been done to deal with fraud at Sassa.”
Oliphant said if an official urgently needed bodyguards it was treated as an emergency and no tender would be issued. A bidding process was used if the guards were needed for a longer period. This service was put out to tender annually.
Oliphant failed to explain to the Sunday Times this week how her life was threatened — making a bodyguard necessary — or how Vuco came to be awarded the Sassa deal.
In May 2013, a whistle-blower from Eshowe approached Sassa claiming to have information of a scam operating in the area. He and members of his family were immediately assigned bodyguards. Sassa paid an exorbitant amount to Vuco Security to build a wall and guard house at his home. Vuco Security invoices seen by the Sunday Times claimed an extra R65 825 on May 23 2013, for:
R10 250 for a guard during the day; ý R10 750 for a guard at night; ý R10 250 for a 2-litre vehicle; ý R26 000 for travelling 4 000km; ý R4 000 for CCTV, alarm and fence maintenance;
R3 400 for night-vision binoculars; ý R10 250 for a car on stand-by; ý R7 000 for armed reaction; and ý A R8 250 monthly management fee.
In another invoice, also dated May 23 2013, Vuco billed Sassa for R369 100, which included: ý R45 000 for an electric fence; ý R54 000 for building a wall; ý R30 500 for stoep and front gate pillars to control gate;
R26 000 for a half-metre foundation;
R27 000 for converting a garage into control centre;
R17 000 for building a toilet outside;
R25 900 for building and plastering; ý R42 000 for labour; and ý R15 000 for electrical gate with motor.
Another invoice from Vuco to Sassa dated June 25 2013 for R416 400 includes:
A R16 500 monthly management fee; ý R14 000 for armed reaction; ý R20 500 for a guard during the day; ý R21 500 for a guard at night; ý R20 500 for a vehicle; ý R20 500 for a vehicle on stand-by; ý R39 000 for travelling 6 000km; ý R8 000 for CCTV, alarm and fence maintenance; and
R3 400 for night-vision binoculars.
Police spokesman Solomon Makgale said the South African Police Service was working “very closely with Sassa to deal with criminality, both within and outside Sassa”.
Makgale said: “The department and Sassa make provision for the security of their officials.”