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Corrupt execs caught red-handed


Johannesburg, 13 Aug 2010

The South African Police Services' Hawks unit and the Department of Home Affairs caught Lefatshe CEO Coltrane Nyathi and Home Affairs' chief director of infrastructure management Nkosana Hilita in the act of “corrupt activities”, the organisations claim.

This revelation follows news yesterday that Nyathi and Hilita are incarcerated on a charge of corruption, pending a bail hearing due to take place on Monday.

Despite confirming the arrest of Hilita's subordinate, Zakhele Khuzwayo, on Wednesday evening, the Hawks are now stating that a “third person” was involved in the sting.

Cash in hand

A media briefing held yesterday in Pretoria by the two government departments revealed Nyathi, along with the “third person”, allegedly attempted to hand over R200 000 in cash to Hilita.

Home Affairs director-general Mkhuseli Apleni commented that the act is thought to have had the aim of influencing Hilita to the benefit of Lefatshe.

Apleni explained Lefatshe Technology was awarded a tender by the Department of Home Affairs to “supply security systems, such as anti-virus programming, for the department's IT and computer systems.

“In terms of this tender, Lefatshe Technology has successfully concluded phase one of the contract as awarded. However, problems arose in the contract due to failure by Lefatshe Technology to meet the required standards in delivering on its mandate. Accordingly, the department was left with no option but to put a halt to the contract,” he said.

Home Affairs and the Hawks believe it is this decision to halt the contract that may have “allegedly prompted the two persons to act in [the corrupt activities], with a view to restoring the contract to Lefatshe Technology”. Apleni says the contract was valued at R20 million.

ITWebhas since established that this tender was for the implementation of the intruder prevention and detection system advertised by the State IT Agency on Home Affairs' behalf in April last year.

Contract implications

In response to questions as to whether the joint team investigated other Lefatshe employees - as Nyathi had only been with the company a few months - Apleni said the company's actions around the tender continue to be investigated.

However, the current investigation would not impact on any other contracts Lefatshe was delivering to the department.

“We will only cancel contracts on a basis of non-delivery. National Treasury decides which suppliers are not allowed to deal with government,” Apleni explained.

Lefatshe spokesperson Mbuso Thabethe had yet to respond at time of publication.

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