A forensic report, commissioned by the Department of Trade and Industry (DTI), on alleged dodgy dealings at the Companies and Intellectual Property Registration Office (Cipro), is expected to see the light of day “soon”.
According to the department's communications director, Sidwell Medupe, trade and industry minister Rob Davies will present the report to the Parliamentary Portfolio Committee on Trade and Industry once it has been consolidated with a report by the Auditor General (AG).
The AG was called to investigate the circumstances surrounding the awarding of the highly controversial R153 million enterprise content management (ECM) tender by Cipro.
The ECM tender was awarded to ValorIT, in March last year, and was shortly thereafter challenged in court by Mantra Consulting, which charged that ValorIT had failed to hand over R10 million in consultancy fees. Mantra Consulting was earlier contracted by ValorIT to provide consulting services and ensure ValorIT won the tender bid.
Speculation that confidential Cipro information, relating to bid specifications and pricing, had been handed over to ValorIT to give it an advantage over rival bidders, dogged the tender from the start. Cipro previously steadfastly refused Mantra Consulting's request to scrap the tender.
Lost heads
While the AG's report is still being finalised, Davies commissioned independent investigation firm Specialised Security Group to conduct a forensic investigation into the ECM tender and allegations of widespread fraud at the agency, which was completed last month.
Sources close to the investigation say the report could blow the lid off another suspected scam at Cipro, which relates to the creation of false companies in the Cipro database and to defraud the South African Revenue Service (SARS) of VAT.
A criminal investigation, conducted in parallel to the forensic probe, is still ongoing.
Cipro head of communications Elsabe Conradie says Davies briefed staff on the investigation and a workshop was held to discuss how the agency would prevent fraudulent activity in future.
Face to face
Meanwhile, Cipro is expected to face the Parliamentary Portfolio Committee on Friday this week, after it was shooed from a two-hour hearing last week by the committee chairman Joanmariae Louise Fubbs.
She explained to panel members at the hearing that Cipro was supposed to have answered questions submitted by the committee, and had not complied with the stipulation. It is unclear what the questions were; however, speculation is that they relate to the ECM tender.
Cipro has requested an increased budget for of R293 million for operational purposes (up from last year's R243 million). On top of that, the state-owned business has requested and additional R458 million to fund “special projects”.
These special projects include the funding of the ECM tender and the move to a new building.
The DTI says Cipro was ready and waiting for its chance to present to the committee, and had the replies to the questions on hand. However, it was informed that the meeting would have to be rescheduled.
Democratic Alliance shadow deputy minister of trade and industry Andricus van der Westhuizen has lambasted Cipro's request for increased funds, specifically since the tender issues have not yet been resolved.
He says the forensic report and the AG's report needs to made public as soon as possible. “I will write to the minister of trade and industry, who launched this investigation following a DA request for it, to ascertain why the opportunity was not used to get to the bottom of the alleged corruption at Cipro,” he adds.
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