FOR the second time this week, a company associated with Communications Minister Siphiwe Nyanda has been named as benefiting from state tenders without an open process. GNS Risk Advisory Services, a company 50% owned by Nyanda, was awarded a contract in 2007 by Gauteng’s transport department.
The cost of the work was originally estimated at R12m by Impophoma Infrastructure Support, a business entity of the department set up to improve service delivery. But yesterday, a written reply from roads and transport MEC Bheki Nkosi in response to a Democratic Alliance (DA) question in the Gauteng legislature revealed that R67,87m had been spent on the contract so far, and that the costs had not been determined and fixed in advance. The disclosure came a day after Transnet announced it had sacked two senior managers for manipulating an R18,9m security tender in favour of GNS.
Discrepancies in the Transnet security tender had also led to the suspension of — and disciplinary action against — Transnet Freight Rail CEO Siyabonga Gama. Nkosi confirmed that a tender process had not been followed in awarding the Gauteng contract. “The accounting officer appointed GNS Risk Advisory Services through a deviation as provided for in terms of treasury regulation 16A6.4,” he said. A deviation allows for the procurement of goods or services by means other than competitive bids, only if a bid is impractical.
DA spokesman Jack Bloom said the problem was that the contract was open-ended. “ So far nearly R68m has been paid to GNS and more payments could still be made, unless the contract is urgently reviewed,” he said. Bloom said he had referred the matter to the auditor-general.
Nyanda’s spokesman, Tiyani Rikhotso, said there was no conflict of interest as the contract in question was awarded 18 months before Nyanda joined the Cabinet.
Source: Business Day
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