Finance Minister Orders The Termination Of R378M Tender Awarded To ANC Buddy


As culled from a News24 report, South Africa’s Finance Minister, Pravin Gordhan ordered the Justice and Correctional Services Minister Michael Masutha to terminate a R378M tender awarded to a buddy of the ANC.

In a letter, Gordhan referred Masutha to a report on the review of the bidding process involving the appointment of a service provider for the supply, installation, commission and maintenance of a development framework for an integrated inmate management system for the period of three years.

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He then informed Masutha that National Treasury’s review of the bid process to verify if the Department of Correctional Services complied with the Supply Chain Management (SCM) legal framework during the bidding process, revealed that Integritron Integrated Solutions Ltd was irregularly appointed on various grounds.

According to the Finance Minister, the false declaration by the bidder; a lack of capacity and ability to execute the contract; fronting relationship between the main contractor and sub-contractor; and the fact that the sub-contracting limit of 25% was exceeded; indicated that the tender was irregularly awarded.

Based on the above, Gordhan told Masutha that he’s advised to ensure that the contract is cancelled.

The Justice and Correctional Services Minister was asked to ensure Integritron Integrated Solutions Ltd and its associates are restricted from conducting business with government.

And to also, “investigate disciplinary charges against members of the bid committees and accounting officers.”

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Earlier this month, Masutha was commenting on the R378M Tender. Then, he said the controversial prisons IT contract cannot be stopped until an audit and a court case are completed.

“As far as we are concerned, it does not befall on us to stop a process of this nature…It is only for a court to decide,” he stated. Let’s see if he’ll heed Gordhan’s order.

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