Trade union Solidarity is calling for the immediate suspension of Communications Minister, Siphiwe Nyanda until a comprehensive investigation into the former military leader is completed.
The request follows yesterday's revelation that yet another government contract - to which Nyanda is closely linked - has had to be canned following discovery of procedural irregularities.
Solidarity spokesman Jaco Kleynhans says Zuma needs to take control of the issues around the department and send a strong message that he is serious about stamping out corruption. “This is not acceptable behaviour for a minister.”
A complaint laid by Cope in March this year resulted in the Public Protector launching a probe into Nyanda's time in office. Since then, the Public Protector has had to extend these investigations as subsequent complaints required the initiation of an additional two probes.
Public Protector Thuli Madonsela has already handed over the findings of one of these matters to President Jacob Zuma. The second report is expected to be wrapped up by the end of the week. As yet the Public Protector has not indicated a time frame for the finalisation of the third probe. This investigation is based on allegations that Nyanda intended to suspend then Communications Director General, Mamodupi Mohlala, as a result of her refusal to rubber stamp tenders to which the minister was linked.
Mohlala was dismissed the following week.
Investigation requires broadening
This morning Solidarity argued that a new probe needed to be launched into the minister. This would entail a comprehensive investigation of Nyanda's influence on government tenders; this time including companies to which he was linked prior to his ministerial appointment.
DA corruption spokesman, Jack Bloom supports the call for a new probe as the parameters of the former investigations are too narrow. he says.
Moreover, Bloom says a complete investigation needs to be conducted into the security company at the centre of yesterday's revelations. “We have to know if there was a payoff; it's as simple as that.” Bloom says questions about Nyanda's role in the company need to be asked, as both the canned deals revealed irregularities.
Last year it was revealed that Nyanda held a 50% stake in General Nyanda Security (GNS) Risk Advisory Services, the recipient of the tenders now cancelled. The company has since been renamed to Abalozi Security and Nyanda's family trust has replaced Nyanda as holders of a reduced 45%. The details of the transaction to change ownership and the beneficiaries of the Nyanda Family Trust are not known.
At least two tenders awarded to the security company, have been canned because they were awarded without the proper procedures being followed. These were with Transnet and the Gauteng Roads and Transport Department.
Congress of South African Trade Unions spokesman Patrick Craven says the federation will not comment on the situation until the Public Protector's report is released. However, in general, he says the congress has a strong view that good governance and proper procedures should be followed.
Nyanda's spokesman Tiyani Rikhotso was not available this morning but has previously said that there is no conflict of interest, as the contracts were awarded before Nyanda took up the communications post. Nyanda has also previously said that he is not involved in the day-to-day running of the company.
The minister is also not listed as a director of Abalozi according to information provided by the Companies and Intellectual Property Registration Office.
Improper contracts
In June, Transnet Freight Rail CEO Siyabonga Gama was summarily dismissed after being found guilty during an internal disciplinary process of charges of signing off on contracts without the proper authority.
Gama's authority to approve deals was limited to those valued up to R10 million, however the amount paid out to GNS, in total, came to R55 million over a 20-month period.
Yesterday, Bloom revealed that the Gauteng roads contract had been cancelled after a legal review found that prescribed procurement processes were not followed and that other companies could do the same service at a much lower rate.
Bloom's revelation came out after Roads and Transport MEC Bheki Nkosi replied to his questions in the Gauteng Legislature. According to Nkosi, the contract was cancelled on 16 March and the total expenditure amounted to R71 million.
The contract, awarded to GNS in October 2007, did not go out on tender and was open-ended and could have run indefinitely, says Bloom.
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