Loading...
See More

R30m Mvula tender in the spotlight

Jan 29 2013 17:22 Sapa

Of the eight audited departments, the department of defence spent the highest amount: R10.4bn in the past three years.

Related Articles

Zuma warns on tenders

Tenders can help only a few - Jansen

Tender system dents ANC image - Zuma

Zuma's nephew in bus tender dispute

Questions over Zuma ally's R1bn tender

Malema pals benefit from R1.7bn tender

 
Johannesburg - Non-governmental organisation Mvula Trust fronted for a contractor in a R30m tender meant for job creation, Corruption Watch (CW) said on Tuesday.

"The revelations follow a four-month long investigation after CW was approached by a whistle-blower last year, who alleged that rural development NGO Mvula Trust had obtained a government tender irregularly," the organisation said in a statement.

Mvula Trust won the tender to manage the distribution of millions of rands through a communities-based job creation project.

Repeated attempts on Tuesday to get comment from the department of co-operative governance and traditional affairs (Cogta), which awarded the tender to Mvula, were unsuccessful.

Spokesperson Nghamula Nkuna promised to issue a statement "later".

The tender was part of the department's community works programme.

"The tender irregularities occurred under the watch of trust chairperson and Deputy Water and Environmental Affairs Minister Rejoice Mabudafhasi.

"The investigation found that Mvula Trust sub-contracted a significant part of the awarded contract to a third party."

This arrangement between Mvula Trust and the third party, Ubuntu Sima, was not disclosed in the initial bidding documents as required, CW said.

It said a number of questionable links relating to conflicts of interest between Mvula Trust and Ubuntu Sima were also uncovered.

An ex-trustee reported the irregularities to the police and the case was being investigated by the commercial crimes unit.

"We have approached Cogta and provided it with detailed information based on our investigation," said CW director David Lewis.

"We are requesting them to further investigate the matter and to follow up with necessary tough action against those found to be in the wrong."

Mvula's acting chief executive Silas Mbedzi said the problem lay with vague and outdated rules governing the trustees, according to a report by the Eyewitness News/Daily Maverick earlier on Tuesday.

Mbedzi said old rules allowed for conflicts of interest to be declared verbally, and this, he said, is exactly what happened with the tender. In November last year, the board charter and trustee deeds were updated to close any loopholes, Mbedzi told the two publications.

Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.

corruption watch  |  tenders
NEXT ON FIN24X

Prasa posts R336m profit

2014-09-29 20:19

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
21 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're talking about:

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...