As exposed at yesterday’s Standing Committee on Public Accounts (SCOPA) sitting, South African National Road Agency Limited (Sanral) illegally awarded contracts worth over R800 million to unregistered companies.
Precisely, the worth of the contracts illegally awarded to unregistered companies is R827 million.
At SCOPA sitting, it was revealed that 12 companies not registered with Companies and Intellectual Property Commission (CIPC), were awarded contracts in contravention of the Public Finance Management Act.
South Africa’s official opposition party quickly reacted to the revelations saying it put the leadership at Sanral in a chokehold.
“(we will) call on the Minister of Transport, Ms Dipuo Peters, to launch an investigation into why key legislation was flouted in the awarding of these contracts and whether any other companies not registered with CIPC were also awarded contracts by Sanral.
The value of the contracts awarded to these companies total a staggering R827 million and the Minister must account for why the requisite vetting processes were not undertaken and there was no due diligence.
At a time when entities of the Department of Transport, such as Prasa, are currently under investigation for over a billion in the current financial year in irregular payments, it is deeply concerning that Sanral has also followed suit, clearly revealing a lack of leadership at the department.”
With that above, DA vowed that it will continue to fight for state entities to comply with procurement regulations.
“It cannot be that millions are paid to illegitimate and ill-equipped companies who are capable of placing the lives of many South Africans at risk when building key infrastructure,” added the opposition party.
Not long past, the DA indicated that it will request a full-scale investigation by SCOPA into Prasa’s R16,04 billion in irregular payments discovered through the Auditor General’s (AG) Financial Management Report.