COSATU Gauteng Press statement on the outcome of investigations by the Department of Roads and Transport

The Congress of South African Trade Unions in Gauteng congratulates the Auditor General for his report on 14 June 2011 on allegations of irregular expenditure and flaws in the awarding of tenders totalling over R1 billion by the Gauteng Department of Roads and Transport.

While COSATU is shocked at his findings, it is very encouraging to see such a determined and vigorous attempt to uncover the abuse of tender procedures and also the prompt response of Transport MEC Ismail Vadi, who has immediately taken action to rectify the problem.

The tenders in question relate to the following projects in the Province:

• Provision of security to departmental buildings (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);
• Construction and renovation at Derek Masoek Centre (R20 million); and
• The construction of roads (R900 million over 3 years)

The AG exposed "a systematic weakness in the department's supply chain management process and poor quality of reporting". He found that the process followed when awarding the contracts was flawed and he suggested, diplomatically, that "actions by some officials may have amounted of a conflict of interest".

Bidders were not sufficiently rated and no evaluation of different bidders took place, which led to incorrect ranking and higher value contracts.  "As a result of the process having been flawed," says Comrade Vadi, "the five successful bidders for the security tender were awarded contracts while they should have been disqualified at the preliminary evaluation stage" and therefore "these bidders received contracts which they were not entitled to".

On the roads construction contract, the AG has revealed that the department prepared and issued letters of appointment to the three service providers even though no funds were available.

"The department did not know how much the entire road construction project was going to cost as there were no bills of quantities," said Vadi. "The Head of Department also did not ensure that proper procurement processes were followed as she failed to wait for the approval of the MEC for Finance...the HOD proceeded with the appointment even after she was instructed by provincial treasury not to do so."

COSATU Gauteng welcomes the recommendation that the department should declare these tenders null and void. They must follow up on the report and uncover who is responsible for the abuses the AG has uncovered, and those responsible staff members should be brought before a disciplinary enquiry and those found guilty should face exemplary penalties.

The federation hopes that this is further proof that government at all levels is tackling the problem of the looting of public funds with the seriousness it deserves. All companies found to have been awarded tenders improperly should be blacklisted by the department and government, in line with the excellent precedent set by the Minister of Finance in Limpopo Province.

COSATU and its affiliates will continue to blow the whistle on corruption and the misuse of the people's money. We will be seeking an urgent meeting with the department to ensure that we access the report to enable us to see that justice has been done in the investigation.

Statement issued by COSATU Gauteng Provincial Secretary, Dumisani Dakile, June 15 2011

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