Nyanda under fire

Communications minister Siphiwe Nyanda is again in the spotlight after two senior Transnet staff members were axed for awarding his company a multimillion-rand deal. Nyanda's company, General Nyanda Security Risk Advisory Services (GNS), was irregularly awarded a contract to provide specialised security services.

However, the limit on such tenders was R10 million, and Transnet has now fired two senior managers for awarding a deal worth more than that. The minister owns half of GNS, which had been paid R55 million between December 2007 and late last year, Barbara Hogan, minister of public enterprises, said in reply to questions in Parliament. The initial value of the deal was R18.9 million and was awarded by suspended Transnet Freight Rail chief executive Siyabonga Gama. Gama was suspended last September for his role in awarding contracts, including the security deal, without following the proper procedures.

Transnet spokesman John Dludlu this morning told ITWeb that the security contract with GNS has since been terminated. The state-owned enterprise has dismissed two senior managers in charge of security at Transnet Freight Rail, after wrapping up an internal disciplinary process. The managers were found guilty of dishonesty and misconduct by an independent investigation. The unnamed managers had awarded the GNS contract without opening a tender process, and without following the required governance processes. Their dismissal follows their suspension late last year, after the irregularities came to light. Tiyani Rikhotso, Nyanda's spokesman, was not available this morning to comment on the matter. The minister has, however, previously denied being involved in the day-to-day running of the security company.

The Parliamentary register of interests lists Nyanda as a 50% shareholder in GNS, but there is no value attached to his stake. His only listed benefit from GNS is a driver for general household tasks, the register indicates.

Nyanda previously come under fire from opposition party Congress of the People over the contracts between GNS and Transnet Freight Rail, as well as other government departments. He has also been called to task over his lavish spending at Cape Town hotels, instead of staying in his official residence, and for splashing out on luxury cars.

Source: IT Web