Gordhan highlights beleaguered Bain's history of govt tenders

The Department of Public Enterprises and National Treasury awarded global management consultancy firm Bain & Company a tender worth R12.1m, Parliament has heard.

Public Enterprises Minister Pravin Gordhan said in a written reply to a question from Member of Parliament for the Economic Freedom Fighters Mzingisi Dlamini that the Department of Public Enterprises (DPE) and National Treasury had participated in awarding the tender to Bain following a tender evaluation.

The tender was for work to be done at state-owned airlines, said Gordhan.

Hot water

Dlamini wrote to Gordhan after the firm landed in hot water when its name came up during Judge Robert Nugent’s Commission into the South African Revenue Service, and evidence emerged of its role in changing the operating model at SARS in 2015 under the watch of now suspended Commissioner Tom Moyane.

Most recently, Business Leadership South Africa cut ties with the consultancy firm over the imbroglio.

• READ: R12m for foreign firm to manage SA's airline mergers

Bain also pledged R164m as prescribed by the Nugent Commission of Inquiry or – in the absence of such prescription – for the benefit of South Africa.

MOU

"The two departments entered into a memorandum of understanding where National Treasury contributed R10m and the Department of Public Enterprises R2.1m respectively towards the project to develop an optimal group corporate structure for the state-owned airlines," said Gordhan.

Gordhan said the tender was procured for the development of "the optimal group corporate structure for the state-owned airlines".

The contract was awarded in October 2016. The work undertaken by Bain commenced in November 2016 and was completed in March 2017, he added.

He said Eskom had awarded a tender to Bain and Company in 2010, but that other state-owned companies like South African Airways, Denel and Transnet had not.

This article has been amended to reflect that Business Leadership South Africa has cut ties with Bain and Company, and not Business Unity South Africa. Business Unity South Africa has never been a member or partner to Bain and Company. It was also amended to reflect that the R164m will be used either as prescribed by the Nugent Commission of Inquiry or – in the absence of such prescription – for the benefit of South Africa, not to assist with the costs of the Commission.

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