Report: Prison boss was bribed

2011-03-20 09:16

Johannesburg - A shock report by the Special Investigating Unit (SIU) claims a mansion was built for former prisons boss Linda Mti by a company that received tenders worth R1.5 billion on his watch.

The report nails facilities management group Bosasa, headed by the politically connected businessman Gavin Watson, for bribing Mti and the former chief financial officer of the prisons department, Patrick Gillingham.

City Press is in possession of a copy of the report that has been kept under wraps after it was handed to correctional ­services minister Nosiviwe Mapisa-Nqakula by the SIU in September 2009.

The SIU found the existence of an ­“improper and corrupt” relationship between senior correctional services officials and the Bosasa group, which has received massive tenders since 2004 to provide ­catering services, security equipment, televisions and modern fencing to prisons.

Bosasa has links to senior government and ANC officials, including National ­Intelligence Agency boss Gibson Njenje, who was one of the company’s founding members and a former chairperson.

The group also benefits from massive transport and justice department tenders, and is running the Lindela repatriation camp for the home affairs department.

The SIU report claims that:

  •  The department of correctional ­services (DCS), under Mti, used savings from the fund for the compensation of prison staff to pay for the Bosasa tenders;

  • Gillingham received cash, cars, a ­kitchen and payments towards a house from Bosasa;

  • Gillingham carried business cards indicating he was a “consultant” to a Bosasa affiliate while he was working for the DCS;

  • Bosasa was involved in drafting tender documents for contracts it won in a way that gave it a clear advantage in the awarding of these tenders; and

  • Mti, who was head of security for the 2010 Fifa World Cup, appointed Gillingham as acting chief financial officer in 2004 shortly after allegations surfaced that he (Gillingham) submitted fraudulent subsistence and travel claims, had an affair with his secretary and intimidated staff.

The SIU concludes that there was an “improper and corrupt relationship” ­between Gillingham, Mti and the Bosasa group of companies.

Bosasa has previously denied acting illegally and brought a court challenge against the investigation. The SIU undertook not to “interrogate material witnesses” (including Bosasa officials and the company’s auditors) until the court case was finalised.

Mti and Gillingham previously denied taking bribes. Mti said in November 2009: “I can tell you that there’s no money that went into my own pocket.”

How the SIU did it

In 2006 various allegations surfaced in the media relating to the alleged irregular awarding of multimillion-rand contracts by the Department of Correctional Services (DCS) to the Bosasa group of companies.

Later in 2006 the Public Service Commission and the Auditor-General referred specific allegations relating to the Bosasa contracts to the Special Investigating Unit (SIU) for further investigation.

In November 2007 former president Thabo Mbeki issued a proclamation authorising the SIU to investigate tender irregularities at the DCS.

The SIU employed a multi-disciplinary team of forensic lawyers, forensic accountants, forensic investigators and cyber forensic experts to conduct the investigation.

The SIU obtained 28 affidavits, the majority from correctional services officials.

A former Bosasa employee, who is unnamed in the report, provided the SIU with a crucial affidavit, describing how Bosasa influenced tender processes.

In December 2008 the SIU made mirror images of Bosasa’s computer servers and the laptops of Bosasa employees Angelo Agrizzi, Andries van Tonder and Frans Vorster.

The SIU discovered that a data deletion utility had been used to wipe data from the servers, but the unit managed to retrieve data by employing advanced data-recovery techniques.

  • ebdg3000 - 2011-03-20 09:35

    What's so shocking aobut this? Its just another day in SA ...

  • Blip - 2011-03-20 09:35

    When you, a deployed cadre, have a snout and someone waves yummy gravy under it, there will only be one outcome, every time. The shortest distance between two points -- one a snout; the other, plenty of gravy -- is a straight line.

  • Paul - 2011-03-20 09:45

    The bigger problem is why the minister has done nothing about it since Sept 2009. Fire the minister and prosecute the rest of the bastards. Maybe you can't blame the minister, since he/she is obviously following our Presidents repeated instructions to get tough on corruption, and root it out. Or maybe the minister knows that JZ's talk is just talk, and no action is desired.

  • Blue - 2011-03-20 09:47

    DAMIT MAN!!!! WHEN THE HELL IS THIS GOING TO STOP???? Isn't there anyone ( with the right amount of influence ) out there who is bave enough to make a stand and ABSOLUTELY DEMAND that our tender processes in this country be done transparently...OPEN THE TENDER PROCESS. It is honestly as easy as that. OPEN THE BLOODY TENDER PROCESS!!!

      tiotudg - 2011-03-20 09:56

      Dink u vir een oomblik dat die wat die mag het en dit vir die afsienbare toekoms bedrieglik gaan behou, die minste begeerte of voorneme het om dinge anders te laat verloop? Hulle WIL dine so he^.

  • Benny66 - 2011-03-20 09:56

    Perhaps some of us should focus on the story and not the journalist! The report was handed to the ANC Gov 18 MONTHS ago in Sep 2009? What has our prezzy and his cronies, who have publicly stated that they want to wipe out corruption, done about it in all this time?

  • exocist - 2011-03-20 10:13

    MORE ANC ELECTION RAZZLE DAZZLE five years for this to come out WHY NOW? is it to con the electorate? nothing will be done about it as usual, after the elections it will be swept under the mat, like all other corruption

  • saliem - 2011-03-20 10:14

    I are finks that these am shock realisations of korrupt akts :P

  • GrimReaper10 - 2011-03-20 10:49

    Lot of corruption news comming out before the election....

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