R3bn tender fraud found by SIU

Public Works Minister Gwen Mahlangu-Nkabinde revealed that taxpayers have forked out about R183 million for 34 new VIP homes. Photo: Mujahid Safodien

Public Works Minister Gwen Mahlangu-Nkabinde revealed that taxpayers have forked out about R183 million for 34 new VIP homes. Photo: Mujahid Safodien

Published Sep 20, 2011

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Tender irregularities of about R3 billion were uncovered in a Special Investigating Unit (SIU) probe into the Public Works Department, minister Gwen Mahlangu-Nkabinde said on Monday.

“We know of more than 40 cases where tenders were awarded improperly, where procedures were not followed and dishonesty took place,” said the public works minister.

“We know of irregular expenditure, what appears to be false book-keeping, and have discovered evidence of corruption by department officials.”

Criminal charges were likely to be brought against several officials and outsiders. Her department would “tighten up” the leasing of properties. “I cannot wave a magic wand and cure the ills of corruption overnight,” she said. “What has to be done is for the department to become more vigilant in ensuring that proper tender procedures are followed.”

The minister, who was appointed 10 months ago, admitted her department had failed South Africans.

“I was inadvertently handed a poisoned chalice. I inherited a situation where serious irregularities had occurred. It was extraordinarily difficult to get to the truth of what had been taking place because some officials did everything they could to obstruct my investigations,” said Mahlangu-Nkabinde.

“Frankly, I have been lied to and deceived by people who, instead of serving the people of South Africa, were intent on lining their own pockets.”

She vowed to root out corrupt personnel. “I cannot undo what was done in the past, but I can assure South Africa that the government will not tolerate corruption and dishonesty,” she said. “It will take me many months to unravel all that has happened, but it will be done.”

She said the irregularities had overshadowed the ministry’s good work.

The SIU said on Monday the cases involved leases for accommodation and buildings, prestige projects which focused on, among other things, looking after the president and his cabinet, 10 capital expenditure projects and general procurement irregularities.

“R3bn is a current figure and it is going to increase as the investigation continues,” the unit said. - Political Bureau

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