I have requested the Auditor-General of South Africa (AGSA) to investigate the awarding of several contracts by the Departmental Acquisition Council (DAC): Gauteng Provincial Department of Roads and Transport (DR&T).
These contracts were awarded between 1 September 2010 and 15 December 2010. The majority of awards were made shortly after the announcement by the Premier of Gauteng of my appointment as the MEC for Roads and Transport.
The purpose of the investigation is to establish whether or not the decisions taken by the DAC in respect of the contracts were in accordance with the established legal and regulatory prescripts of government.
In this sense, this is essentially an internal investigation to assess whether or not there was due diligence on the part of departmental officials and compliance with the established regulatory framework.
The 13 contracts under investigation relate to the:
- construction of roads (R900 million over three years)
- provision of security to premises and buildings of the DR&T (R49 million)
- intelligent number plate project (R1.3 million)
- establishment of new Driver-Learner Testing Stations (DLTCs) and a turn-around strategy for DLTCs (R35 million)
- installation of a Biometric Verification System (R4 million)
- the construction and renovation at a building owned by the DR&T (R20 million).
A preliminary review of available departmental records conducted by both my office and the AGSA has shown that there are grounds for a further, in-depth investigation into the matter.
I have urged the AGSA to complete the investigation in the shortest possible time so that it does not compromise the Gauteng government's programmes of building roads and meeting the service delivery commitments to our communities. I t is anticipated that the investigation will be completed within 12 weeks.
In my first address to the Gauteng Provincial Legislature on 6 December 2010 in which I assessed briefly the state of the DR&T, I stated: we’ve come to the conclusion that the single, most important issue is the perceived negative public image of the department. Whether it is true or not, the perception exists that the department's procurement and tender processes lacked integrity and transparency.
I am determined to ensure integrity in the procurement processes within the DR&T and the current investigation will hopefully either reveal compliance with regulatory framework or show up weaknesses in the system that will have to be rectified.
For further information contact:
Ismail Vadi
Cell: 082 556 0242
Octavia Mamobolo
Cell: 082 3168 666
