DA requests Public Protector investigation into R10 million VIP scandal

The DA will today report the allegations that the South African Social Security Agency (SASSA) spent an exorbitant R10 million of public money on VIP protection for its Chief Executive Officer, Virginia Petersen, and the spokesperson of the Department of Social Development, Lumka Oliphant, to the Public Protector, Adv. Thuli Madonsela.

This abuse of public money, which should have been spent on helping the most vulnerable members of our society, must be condemned in the strongest terms possible. It is the most recent case of millions of rands being spent to benefit a connected few, at the expense of the people who are most in need.

An investigation conducted by the Sunday Times revealed that a security company, Vuco, had been awarded the contract to provide security details for these two officials. It is also exposed that no proper procurement processes were followed in awarding this contract, in fact, a directive came from the CEO of SASSA to ‘bypass' all these steps in order to speed up the process (see report here). 

In addition to the flouting of tender processes, the money that has been spent on this company is outrageous and the reasons given for the expenditure are completely unreasonable.

These include:

• R1.1-million "for close protection services" for spokesperson for the Department of Social Development, Lumka Oliphant and her family;
• R2.9-million "for close protection services" for Sassa CEO Virginia Petersen and Renay Ogle, general manager for fraud management and compliance
• R95460 per month since October last year to protect a whistle-blower from KwaZulu-Natal and his family;
• R45000 for a fence, R17000 for a toilet, R54000 for a wall, R30500 for a stoep and front gate pillar, R15000 for an electric gate; and
• R206000 for a luxury Range Rover for Andile Khanyile, the head of operations for Vuco and often accompanies Petersen as her "security adviser".

This is a clear case of tax payers' money redirected from much needed services that are to benefit the poor to frivolous spending on a connected few. 

This corruption is stealing from the people directly. As an example, this money could have helped over 2 688 children with a Child Support Grant which is at R310 a month for an entire year. 

This flagrant disregard for the constitutional principles which underpin our democracy cannot be left unanswered. 

That is why the DA will approach the Public Protector, Adv Madonsela to launch a full investigation into this clear misappropriation of public money by the Department of Social Development and SASSA. The Public Protector must look at the flouted tender processes, examine the contract between SASSA and the security company Vuco, and determine whether the money paid out to this company constitute wasteful expenditure. 

The more the ANC government pays lip service to the commitment of fighting corruption, the more it becomes apparent that those words ring hollow. 

Corruption robs poor South Africans of the services that they are entitled to. 

The DA will do everything possible to ensure that an investigation is launched as soon as possible and that all those who have no regard for public money and the law are held accountable for their actions.

And like we have done with other such condemnable abuses of public money , we will be unrelenting until we ensure accountability for this wrong doing.

Statement issued by Mike Waters, DA Shadow Minister of Social Development, April 20 2014

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