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Shaik firm's govt deal at risk
14/02/2007 21:40 - (SA)
Johannesburg - A transport department contract with one of convicted fraudster Schabir Shaik's companies hangs in the balance, SABC news reported on Wednesday.
An announcement on the department's dealings with Prodiba, which had been manufacturing credit-card format drivers licences on behalf of the government since 1998, was expected next week.
Shaik resigned as director of the Nkobi group of companies, but one of his subsidiaries still held shares in Prodiba.
The Public Finance Management Act forbade government departments from doing business with convicted criminals.
Transport director general Mpumi Mpofu told Parliament's Standing Committee on Public Accounts: "In the month of January alone we've been doing a whole lot of work with respect to this matter, with particularly the state law advisors, on how we proceed... and we have firm opinion on how we should do that."
Scopa chairman Themba Godi asked what specific course of action was likely to follow.
Mpofu replied: "We will be acting on that legal advice and this committee will be duly informed... I can't say more than that."
Shaik and his companies stand to lose a substantial amount of money. In the first phase of the deal Prodiba was paid R260m.
The SABC also reported that a decision on Shaik's 81-day stay in Durban's St Augustine's Hospital was expected soon.
Correctional services was studying a medical report from an independent specialist. If found fit he could go back to jail.
His medical aid, Discovery Health, was to decide on Friday whether or not to pay his medical bill, reported to be more than R500 000.
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