The Pubic Protector has let communications minister Siphiwe Nyanda off the hook on one complaint, but found him guilty of using his office improperly to benefit fired Transnet Rail Freight CEO Siyabonga Gama.
The findings relate to two separate reports, the first laid by Jack Bloom, a Democratic Alliance member of the Gauteng Provincial Legislature, and the second by Congress of the People (COPE) MP Juli Killian.
Bloom's complaint relates to the awarding of a R55m contract to Abalozi Security Risk Advisory Services (Formerly General Nyanda Risk Advisory Services) by the Gauteng Department of Public Transport and Works (GDTRW) for security services.
In that complaint, the Public Protector found that Nyanda had not violated the Executive Members Ethics Act or the corresponding provisions of the Code of Ethics.
However, it did find that the contract had been awarded “irregularly” and that no evidence could be found that Nyanda (a former director of Abalozi) was directly involved in securing the contract, although by its own admission the GDTRW did take into consideration his experience in the security sector for the award of the contracts.
The Public Protector found in the COPE complaint that there was no conclusive evidence to substantiate the allegation that General Nyanda was personally responsible for securing the Transnet Freight Rail (TFR) contract or that he used his position or relationship with the CEO (Gama) to obtain it.
XHead = Stated breach
However, the Public Protector found that Nyanda's media statements in support of Gama were in breach of the Code of Ethics.
Recommendations by the Public Protector are that the Gauteng contracts be reviewed and that the premier of that province be instructed by President Jacob Zuma to investigate any administrative failures in the award of the contract to Abalozi by the GDTRW. Another recommendation is that President Jacob Zuma directs the Treasury to all contracts issued on confinement that exceed R1m.
Regarding the COPE complaint, the Public Protector also recommends that the Cabinet Secretary takes appropriate steps to ensure that ministers and deputy ministers are familiar with all the provisions of the Executive Code of Ethics. It also recommends that regulations around conflict of interests for members of government executive be strengthened.
A statement issued by the Presidency says that President Jacob Zuma is considering the recommendations and that he would submit both reports to Parliament.
XHead = Feeling vindicated
Nyanda's office issued a statement saying that, in terms of the GDTRW complaint, the minister feels vindicated by the findings that no evidence could be found implicating him in the process of securing the GTRW or any of the other contracts.
“Evidence could also not be found that suggests that General Nyanda has any direct involvement with, or was benefiting from Abalozi. What was confirmed is the information already in the public domain, which indicates that General Nyanda's children's trust, the Mphephethwa Trust, to which he donated his shares on becoming Minister, owns a 45% shareholding in Abalozi,” the statement says.
As for being found guilty of breaching the Code of Ethics by making statements to benefit Gama, Nyanda's spokesperson Tiyani Rikhotso says: “The minister did not issue a media statement. It was made during an interview with a Sunday Times reporter. It was made in the context of transformation in general and the need for government to lead by example through the state-owned-enterprises which are its agents of change.”
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