The Gauteng Department of Roads and Transport is taking action against officials involved in the irregular awarding of contracts to the value of R1 billion.
In June, MEC Ismail Vadi announced that an investigation by the auditor-general revealed corruption and improper procurement processes within the department.
Speaking to ITWeb, Vadi said two members of the department involved in the irregular awarding of the contracts have had charges instituted against them. About 10 others have been given their first warnings.
In January, the MEC requested an investigation into the awarding of 13 tenders by the Departmental Adjudication Council.
The contracts in question relate to the intelligent number plate project, at R1.3 million; the installation of a biometric verification system, at R4 million; the provision of security to departmental buildings, at R49 million; the establishment of new electronic driver-learner testing centres, at R35 million; the construction and renovation at Derek Masoek Centre, at R20 million; and the construction of roads at R900 million, over three years.
Avoiding damages
Media reports recently said Vadi is threatening to cancel these contracts. This has raised concerns about large damages claims that could arise as a result.
One implicated contract for roads construction was found to be valid and legitimate, and so will go ahead.
Vadi added that for the other contracts, the AG's recommendations will be followed. The AG suggested the letters of award in respect of the tenders be declared null and void. The AG also recommended that corrective and disciplinary action should be instituted against selected staff members.
Papers have subsequently been filed at court to set aside the letters of award.
Vadi said some companies that received the letters of award are contesting the motion to set them aside. Other companies are requesting further information.
“We have to go to court. That's the only place where an order can be given. If the court says we must let the contracts go ahead we will, and if they say the contracts must be made null and void then we will do that as well.”
Name and shame
Vadi in June said the respective companies have not been named, because the investigation was into the department's internal processes.
“There is no indication in the AG's report about perceptible wrongdoing on the part of the companies.”
However, the Democratic Alliance feels this allows corrupt companies to attempt the same situation in another province.
“It is also a pity the companies involved were not the subject of the investigation as the possibility exists that the rot may run that deep,” says Gauteng transport spokesperson Neil Campbell.
“I think it is important that examples are made of anyone found guilty, and if the circumstance warrants it they must be fired and not given the golden handshake as usually happens with government officials.”
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