R2.8bn in 10 years: How Bosasa is cashing in on government contracts

Published Jan 23, 2019

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Cape Town - Bosasa received a whopping R2.8billion for services it rendered to two government departments and two public entities over the past 10 years.

This emerged from written responses by ministers to parliamentary questions posed by the DA.

But the amount could be more as other ministers have yet to respond to the written questions - only nine have so far.

Those still to respond include Social Development Minister Susan Shabangu and Telecoms and Postal Services Minister Stella Ndabeni- Abrahams.

They have to answer whether their departments or entities contracted the services of Bosasa in the past 10 years.

The DA, in its written question, wanted to be furnished with details such as the number of contracts signed, dates and duration of each contract signed, services rendered, and the values of the contracts.

Home Affairs Minister Siyabonga Cwele said his department paid R1371007561.75 to Bosasa subsidiary, Leading Prospects Trading.

“This subsidiary provides the department with the Lindela Holding Facility where detained illegal immigrants are kept prior to deportation,” Cwele said.

He said two contracts were awarded to the company.

The first was for 10 years for the provision of a detention facility for illegal foreigners from October 2005 until September 2015 at R7894120 per month. This was extended to February 2016.

The second was for five years for the provision of a detention facility and care of illegal immigrants awaiting deportation at a cost of R9141185 per month.

Justice and Correctional Services Minister Michael Masutha said his department awarded Bosasa a contract which ran from January 2011 until September 2013.

“The service provider was appointed to render security guarding and special services to the department. The total amount spent was R535330659,” Masutha said.

He said entities reporting to him, such as Legal Aid South Africa, the NPA and Social Investigating Unit informed him that they never contracted Bosasa in the past 10 financial years.

Transport Minister Blade Nzimande said his department and 10 of its public entities did not contract Bosasa.

However, Nzimande said Bosasa has had multiple contracts with Airports Company South Africa (Acsa) for provision of security services at various airports between 2015 and 2018.

The contracts are valued at R900 308 592. The contract at OR Tambo International Airport, which was awarded in April 2014, will run until March 2023.

Nzimande also said Air Traffic and Navigation Services entered into a contract with Bosasa for the provision of security services for King Shaka International Airport between August 2012 and July 2013 at a monthly cost of R25427.84.

The ministers for mineral resources, economic development, environmental affairs, small business development, higher education, health, human settlements and police have stated that none of their departments or entities contracted Bosasa.

Political Bureau

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