A security company linked to Communications Minister Siphiwe Nyanda was paid R55 million by Transnet under a contract awarded by suspended rail freight boss Siyabonga Gama, Public Enterprises Minister Barbara Hogan has revealed.
The amount was more than double the R19 million the tender, which helped to scupper Gama's bid to become Transnet's new chief executive, was so far believed to have been worth.
Hogan confirmed that Gama was only authorised to sign off on tenders worth up to R10 million.
She also confirmed that the company, General Nyanda Security Risk Advisory Services (Pty) Ltd, continued to benefit from the contract for several months after Nyanda was included in President Jacob Zuma's Cabinet.
She said in reply to a parliamentary question from Congress of the People MP Leonard Ramatlakane that the company "has been paid approximately R55 million in a 20-month period since the conclusion of the contract in December 2007".