Hawks’ talons out for Manuel
FORMER FINANCE MINISTER AND SUCCESSOR GORDHAN CHARGED WITH ‘CORRUPTION AND IRREGULARITIES’ Contract on modernisation at Sars, worth R100 million, currently standing at R1 billion, scrutinised.
With Finance Minister Pravin Gordhan facing criminal charges, The Citizen has reliably been informed that the Hawks are widening their scope of investigation and are looking at possibly laying charges against his predecessor, Trevor Manuel, as well.
Manuel allegedly approved a contract on modernisation at the SA Revenue Service (Sars), worth R100 million, currently standing at R1 billion, without following due processes.
According to papers seen by The Citizen, the R100 million contract was awarded to Barone, Budge & Dominick (BB&D), allegedly without going out to open tender. Instead, three potential service providers were invited and BB&D was appointed on exemption.
It is also claimed Manuel’s then deputy, Jabu Moleketi, indicated he needed more information before taking a view on the matter.
Furthermore, documents seen by The Citizen show that Sars were criticised for allegedly relying on former Sars general manager of strategy, modernisation and technology, Barry Hore’s “personal experience” and “memos” for the project.
Based on these allegations, the founder of the Decolonisation Foundation and former government spokesperson Mzwanele “Jimmy” Manyi has laid charges of “corruption and irregularities” against Manuel, his successor and former Sars commissioner Pravin Gordhan and Hore. The Citizen understands the matter has been referred to the Hawks for an inquiry and the public protector for assessment.
A memo dated November 2, 2006, sent from Gordhan’s previous office at Sars to Manuel, shows that on November 23, 2006, Moleketi allegedly noted that “this read was complex, would need more information to state a view, hence can only note”. Moleketi then drew a line through the “recommended” and “not recommended” options and instead chose the “noted” option. On the same day, Manuel approved the memo.
A Sars Strategic IT Assessment, dated June 2, 2015, prepared by Gartner Consulting, states the “modernisation agenda was largely driven by a single individual and business had little say in IT investment”. The assessment notes that the modernisation process worked on a principle of “memos” describing what was going to be done. It further states these memos included elements of alignment with Sars’ business plan, but was never 100% matched with the business needs. The assessment reveals that the contract was R100 million for customer management and a subsequent contract for R10 million was awarded, also on an exemption for an automated tax processor. By June last year “Sars have spent approximately R1 billion on BB&D services” and “Sars has spent approximately R3.997 billion on modernisation”, according to the assessment.
Gartner further recorded that a memo “to minister Manuel, dated 2/11/2006, reflects that Hore was only prepared to recommend IBM, Accenture and BB&D as a result of his past experience with these vendors”.
According to the Gartner assessment, an open tender process was conducted to which three consortia responded, one of which was disqualified. The other two went through the Sars evaluation process and the Accenture consortium achieved the highest score. Gartner’s assessment confirms that BB&D was not part of the original Accenture consortium and were brought in through a tender exemption in terms of Treasury Regulation 16A6 4.
The motivation for bringing in BB&D through an exemption process was set out in the memo addressed to Manuel. The memo records that one of Sars’ service providers was “unlikely to remain a viable and affordable option” and that Sars had approached three alternative service providers to submit proposals within four weeks. The memo explains that BB&D was eventually chosen as it offered a “bespoke solution” to Sars’ needs and “a better value for money solution”.
Hawks spokesperson Briga-
Manuel allegedly approved a contract on modernisation at Sars, worth R100 million, currently standing at R1 billion, without following due processes.
dier Hangwani Mulaudzi and public protector (PP) spokesperson Oupa Segwale confirmed receipt of a complaint. The Citizen has seen the complaint, which asks that “irregularities and corruption” involving Manuel, Gordhan and Hore be investigated.
This is not the first time grievances about the appointment of BB&D were referred to the PP. In 2010, a complaint by Sars’ former regional operations manager Kenneth Fitoyi to the PP included the appointment of BB&D, citing similar concerns now raised by Manyi. But Fitoyi says the PP did not investigate the matter citing it did not fall within their mandate.
Mulaudzi said: “The Hawks have registered an inquiry and it will go through a process of thorough analysis and once we are done, we will decide whether there is a case or not.”
The PP’s Segwale said the complaint “will be assessed for jurisdiction and merit. Until the assessment has taken place, we can’t say whether it will be investigated”.
Sars spokesperson Sandile Memela said they are aware the Hawks “are investigating the matter. Sars is fully co-operating.”
Approached for comment last week, Manuel said: “I don’t talk to newspapers. Goodbye, thank you.” Pressed further for comment, an angry Manuel lashed out: “I won’t respond to rubbish, okay. Is this Mzwanele Manyi? Tell him to go and take a flying **** . Don’t call me again about rubbish like that. Go and take it to the Hawks and do whatever you want to do. It is rubbish, okay, it is rubbish, rubbish, rubbish, okay. Don’t ever call me about anything that Mzwanele Manyi has said, because you will start off my day on a bad note. I don’t want that. I don’t know where you got this number from but please stop calling me.”
Yesterday, The Citizen requested Manuel’s e-mail address to send him questions in writing, but he declined, saying: “I’m not a public person. This is my private number. Don’t ever call me ever again. Take out my number out of your bloody system. I’m not here for you, go away. Don’t bloody f ***** g bother me. I won’t bloody give it (e-mail address) to you.”
Speaking on behalf of Gordhan, Yolisa Tyantsi said a response will be released when approached by the Hawks and the office of the public protector.
Moleketi said: “I will never comment because I am hearing it for the first time from you. I haven’t heard anything from anybody. I don’t know what are the legal implications. I’d rather not comment. I have not seen any document. You are just a voice on the other end of the telephone. I don’t know what you are talking about. So, I can’t comment on things that I have not seen.”
The Citizen suggested sending him questions in writing and he said: “No, no. I’m on my way to the airport. I am out of South Africa.” A second request was made and Moleketi said: “I’m not interested at all. Don’t even bother to send questions. Go find someone else, don’t waste my time.”
Hore said: “I’m afraid I’m unable to comment on what is being said. I understand (these are serious allegations), but I am unable to comment. Even if you send me questions in writing I am unable to comment.”
Gartner’s Lisa Lawlor and BB&D’s CEO Peter Searle said they were bound by confidentiality agreements and referred all queries to Sars. – vicky@citizen.co.za
I won’t respond to rubbish, okay. Is this Mzwanele Manyi? Tell him to go and take a flying **** . Don’t call me again about rubbish like that. Trevor Manuel Former finance minister