NYANDA'S GAUTENG CONTRACT WAS A MULTI-MILLION RIP-OFF
It's now revealed!
The cancellation of Abalozi Security's contract with the Gauteng Roads and Transport Department has saved about R24 million a year as it was grossly overpaid for work that other companies could do far cheaper.
I have calculated this from information in a written reply to my questions from former Gauteng Roads and Transport MEC Bheki Nkosi, who finally stopped dodging my questions on this matter shortly before he was moved to the Infrastructure Development Department.
Abalozi's contract was terminated in March this year after being paid R71 million in total since getting this contract without a tender process in October 2007.
Payments to security companies that replaced Abalozi (formerly GNS Risk Advisory Services) are dramatically lower.
Instead of paying R848 160 per month to Abalozi to guard g-Fleet at Bedfordview, Pothlako Security and Cleaning Services is doing the job for R184 643 a month.
Other steep reductions include:
· R49 773 per month to Freedom Fighters Security Services versus R410 000 to guard the Urban Transport Fund Command Centre
· R37 394 per month to Pholile Business Solutions versus R260 000 to guard g-Fleet at Koedoespoort
The biggest rip-off was R747 840 a month to Abalozi for "g-Fleet risk assessment, fraud prevention and forensic investigation" that has now been dispensed with altogether.
The cancellation of Abalozi saves about R2 million a month or R24 million a year.
This whole matter stinks, especially in view of the fact that Abalozi/GNS was part-owned by politically connected former Communications Minister General Siphiwe Nyanda when it got the tender, and his family continued to benefit from this company after he transferred his share into a family trust.
Gauteng Premier Nomvula Mokonyane must now act on the Public Protector's recommendation to "conduct an investigation into any administrative failures and improper conduct that led to the circumstances under which the Gauteng Public Transport, Roads and Works Department awarded the contract to Abalozi and take action against any person whose conduct is found to have been improper".
I estimate that we probably overpaid Abalozi more than R50 million, and legal steps should be taken to recover the wasted money from the former head of this department Mr Sibusiso Buthelezi, who was the Accounting Officer who should have prevented this from happening.
Statement issued by Jack Bloom, MPL, DA Gauteng Corruption Spokesman, November 4 2010
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