Trade and industry minister Rob Davies has received Cabinet's support to act against those implicated in irregularities related to the awarding of a R153 million IT contract on behalf of the Companies and Intellectual Property Registration Office (Cipro).
A statement, issued yesterday after Wednesday's weekly Cabinet meeting, states: “The minister of trade and industry briefed Cabinet about the forensic investigation into the affairs at Cipro, following a report from the auditor-general (AG).”
The statement goes on to say that the forensic report found some irregularities in the procurement of services. Cabinet noted the report and supported the minister's plan to take action against all those who are implicated in the AG and forensic reports.
At a press briefing on 26 April, Davis said he wanted the solution to the tender controversy to be procedurally correct. He noted he was preparing to present his plan to Parliament's financial watchdog, the Standing Committee on Public Accounts, on 18 May.
Davies also said the Department of Trade and Industry's own investigation “...now had sufficient basis to be passed on for legal actions”.
According to the AG's report, there were a number of irregularities in the awarding of the IT contract to upgrade Cipro's systems to prepare it for its new role as a commission in terms of the new Companies Act. A close corporation, ValorIT, won the deal over that of a far cheaper bid from Faritec.
“I find it interesting that a minister needs to seek support from Cabinet to take action against those implicated in the investigations. It strengthens my fear that there are some well-connected people named in the forensic report,” says Democratic Alliance shadow deputy trade and industry minister Andricus van der Westhuizen.
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