The times are certainly not looking too good for the administration, as humongous amount of money is being exposed regularly from various quarters. The auditor-general will be requested to investigate why President Jacob Zuma’s friend, Philani Mavundla, was given a R81m advance payment on a tender to address acid mine drainage.
Democratic Alliance (DA), which criticised the payment on Sunday. The construction magnate once offered to pay Zuma’s portion of the security upgrades to his home in Nkandla.
Similarly internal sources revealed that:
“Although such empowerment deals do include advance payment as many companies who win bids do not always have the capital, in this case the beneficiary is a wildly wealthy crony of Zuma, who doesn’t need or deserve upfront payment,” said Leon Basson, the DA’s head of Water and Sanitation in a reaction.
“ However, the democratic Alliance looks forward to a timely conclusion of the auditor-general investigation and the possible prosecution of all those responsible for violation of state procurement regulations,” Basson said in a statement.
This sensitive findings and recommendations will help to insulate future tender processes from possible corrupt tendencies from those who enjoy the political cover provided by number one.
This follows the revelations of documents, which got to several media houses, showing how Mavundla’s joint venture company was paid the R81m advance before he even broke ground on the plant , which is expressly forbidden by the Public Finance Management Act (PFMA) and other ethics.
It was also discovered by an a senior official that there is no provision for advance payment for such tenders traditionally.
Due process stipulates that you supply the goods and the services, then we pay – not the other way round. The bidding process is meant to eliminate those who do not have resources and those who do not have the capacity to do the job.
“If you can give a tender to anyone and then assist them to do the job, what is the point of procurement policies? Advancing payments means you can give a tender to anyone, without regard to whether they have the resources or capacity to deliver.”
This fresh expose was the latest instalment of City Press’ Watergate investigation, which previously exposed the scale of corruption in bulk water delivery projects, as well as how Water and Sanitation Minister Nomvula Mokonyane’s young companion has been effectively running her department, and how Phase Two of the Lesotho Highlands Water Project was stalled by Mokonyane in apparent efforts to ensure that business beneficiaries close to her got a slice of the R26bn deal from the department.