GENERAL NYANDA'S COMPANY GETS R68M FROM GAUTENG DEPARTMENT
GNS Risk Advisory Services, a company that is 50% owned by Communications Minister General Siphiwe Nyanda, has been paid R67.8 million for a contract awarded without tender by the Gauteng Department of Roads and Transport.
This is revealed in a written reply to my questions by Gauteng Roads and Transport MEC Bheki Nkosi.
According to Nkosi "a contract relating to services of risk management, advisory services and security services" was awarded to GNS on 25 October 2007.
Furthermore "a tender process was not followed in awarding the contract. The Accounting Officer appointed GNS Risk Advisory Service through a deviation as provided for in terms of Treasury Regulations 16A6.4."
This is outrageous. Treasury Regulation 16A6.4 allows for procurement of required goods or services by means other than competitive bids only if this is impractical, but how could there have been anything impractical in this case?
The service provided by GNS could have been provided by many other companies at probable less cost.
Sibusiso Buthelezi, the former head of this department, was notorious for justifying deviations from tender regulations with thin excuses of urgency or impracticality.
This contract also appears to have grown in value, and was not reviewed to see if another company could do it more cost-effectively.
According to Nkosi "The value of the contract in respect of the Department and its entities in general was not in all instances of services required from GNS determined in advance and fixed for the period in which the services were rendered .... The irregularity in the award of this tender relates to the fact that no procurement procedures other than the deviation route were followed in terms of advertisements, evaluation and approval of service provider."
This contract seems to be the most lucrative one for GNS, which also has contracts with other government agencies including Transnet Freight Rail and Metrorail. Two senior managers have now been sacked by TFR for manipulating a tender awarded to GNS and CEO Siyabonga Gama faces disciplinary action after being accused of exceeding his authority by granting an R18.9m tender to GNS in November 2007.
It seems highly irregular that Minister Nyanda continues to benefit handsomely from GNS's contract with a Gauteng Government Department that should have been reviewed long ago.
I am referring this matter to the Auditor-General for investigation as it is vitally important that government contracts be untainted by suspicions of political favouritism.
Statement by Jack Bloom MPL, Democratic Alliance Gauteng Corruption Spokesman, March 18 2010
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