SA: Zimbabwean-owned firm nabs millions in dodgy transport tender

The Citizen

The South African department of transport has allegedly paid more than R10 million to a Zimbabwean-owned private company for livestreaming services, without going out to tender and despite claims that the work could have been done internally at no additional cost.

The allegations are contained in a disclosure submitted under the Protected Disclosures Act, pointing to possible procurement manipulation, irregular expenditure and retaliation against officials who questioned the spending.

The “Whistle-blowing Act” is intended to promote transparency and accountability by protecting employees in the public and private sectors who disclose information relating to unlawful, corrupt or irregular conduct.

According to the revelations, a digital communications company, allegedly owned by a Zimbabwean national, has received repeated request for quotation (RFQ) awards for livestreaming and digital content services for the department since 2023.

According to the whistleblower, the department circumvented competitive bidding requirements by splitting the work into multiple RFQs, each deliberately kept below the R500 000 threshold that would ordinarily trigger an open tender process.

A senior manager in the department said they repeatedly refused to approve the payments because the procurement process appeared structured to sidestep Treasury regulations.

“I refused to approve the repeated engagement of an external service provider receiving in excess of R10 million through successive RFQs to avoid competitive procurement thresholds,” the disclosure said.

Bypassing competitive bidding with multiple RFQs

The official also alleged that departmental staff already possessed the equipment, technical expertise and digital infrastructure required to livestream events.

“The services were capable of being delivered internally,” the whistle-blower said.

The disclosure, dated 19 May, was submitted to parliament, the Presidency, the departments of transport, public service and administration and finance, as well as the auditor-general and the public protector.

The most damning allegations in the leaked disclosure relate to the value for money received.

According to the disclosure, some livestreamed events attracted fewer than 100 viewers despite costing between R150 000 and R350 000 per event.

Fewer than 100 viewers each time

“There is nowhere in the world where I could justify paying such large sums when few people tune in,” the whistle-blower wrote.

The official submitted payment records reflecting amounts allegedly paid to the company, as well as a letter dated 29 April addressed to Transport Minister Barbara Creecy informing her of the intention to make a protected disclosure.

The whistle-blower said the concerns were repeatedly raised during staff meetings and through formal correspondence, but were ignored.

Copies of previous correspondence have also been attached as evidence that the concerns had been raised internally beforehand. Instead of investigating the allegations, management allegedly retaliated against the official for refusing to approve the transactions.

“My supervisor confirmed the refusals under oath, characterising them as insubordination,” the disclosure said.

Department investigates

Advocate Adam Masombuka, the transport department’s acting director-general for cooperate affairs, said the allegations about procurement irregularities were new to the department.

“The allegations are going to be referred for internal forensic investigation to test their veracity,” he said.

On its website, the company claims to have worked with high-profile clients, including President Cyril Ramaphosa and the office of Gauteng premier Panyaza Lesufi.

Standing committee on public accounts chair Songezo Zibi confirmed receipt of the disclosure and said the matter would be considered in due course.

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