We did not use Progressive Business Forum to our benefit - Integritron

2016-04-15 21:14


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Durban – Integritron Integrated Solutions (IIS) on Friday denied using the ANC's Progressive Business Forum (PBF) to its advantage to score millions in government tenders.

"To our best knowledge, it is not possible to leverage PBF membership in this manner. We are one PBF member of at least 6 000 businesses," South African Security Solutions and Technology Group CEO Geoffrey Greyling said in a statement. 

Greyling said his business had also not received any communication from Solly Tshitangano, chief director for governance monitoring and compliance in the office of the Chief Procurement Officer (CPO) and had therefore not been afforded the opportunity to defend its position.

News24 exclusively reported this week that Integritron, which is part of the Sasstec group of companies, benefited richly from government tenders to its affiliates.

On Thursday the company responded to a list of questions from News24, saying that everything was above board when it was awarded the tender and that there was no conflict of interest.

On Wednesday News24 reported that South Africa's new tender regulator had instructed the correctional services department to cancel the "irregular" tender of R378m to Integritron, an ANC benefactor.

Documents obtained by News24/Netwerk24 show how prisons boss Zach Modise defied requests by the newly-established office of the CPO to review the processes followed in awarding a contract for an inmate management system to ISS.

National Treasury, under which the CPO falls, has now instructed Modise to apply steps to cancel the contract. Any fruitless and wasteful expenditure incurred through cancelling the contract should be recovered from Modise personally.

Government tenders

SA Fence & Gate, an Integritron subsidiary, has been awarded government tenders worth billions of rands by Eskom, the Department of Correctional Services (DCS) and the Passenger Rail Agency of South Africa (Prasa).

SA Fence & Gate is an ANC donor and belongs to the PBF.

When it was formed almost a decade ago, the PBF emphasised that members would not receive preferential treatment, when government handed out tenders, because of its donations to the ANC. But at a PBF dinner late last year, President Jacob Zuma encouraged companies who did business with the state to donate money to the party.

Explaining the company's position further, Greyling said IIS was unable to further comment on the Integrated Inmate Management System contract due to confidentiality limitations in the contract with the DCS.

He said that Sasstec primarily operated in the integrated security solutions industry. Greyling said group companies operating in this industry were, SA Fence & Gate, Integritron, Civil-Quip Plant & Equipment Hire and Tavhara Manufacturing and XI Systems.

He said during the five years from 2011 to 2015, the group collectively recorded a turnover of between R300m and R500m per annum.

He said the group employed 1 200 people.

"During this five-year period the group has been awarded only three contracts in the public sector with a value exceeding R50m."

He said during the same period, the group had not been awarded any contracts from Eskom in excess of R50m. He said Sasstec had submitted unsuccessful tenders to the total value of at least R15bn in the public sector during this five-year period.

Read more on:    anc  |  tenders

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