DA calls for probe on Malema cousin

2011-06-06 12:27

The Democratic Alliance today called on the Limpopo Treasury to investigate how ANC Youth League president Julius Malema’s cousin was awarded a R44 million contract allegedly without tendering for it.

The opposition party’s Limpopo leader Desiree van der Walt was responding to an article published in the City Press yesterday that Tshepo Malema’s company, Arandi Trading Enterprises, won the pharmaceutical contract in Limpopo without submitting a formal tender.

The newspaper reported that Arandi Trading Enterprises was one of eight companies whose dealings with the Limpopo health and social development department were now the subject of an internal fraud and corruption probe.

However, Van der Walt said the department of health and social development should not be allowed to investigate its own alleged recklessness and lack of oversight.

She called on provincial treasury MEC David Masondo, “as the custodian of our provincial finances” to intervene.

Arandi Trading Enterprises and the other companies were allegedly awarded tenders worth a total of ­
R167 million by the department to supply syringes, surgical blades, disposable needles, labels for medicines and patient referral forms to Limpopo’s hospitals and clinics.

Despite treasury regulations, which require competitive bids for all contracts above R500?000, the department allegedly issued the tenders through a written quotation system in February this year.

Limpopo health and social development spokesperson Joe Maila was quoted by City Press confirming that Phil Setsiba, the senior manager for pharmaceutical services, had since been suspended for allegedly inflating the quantity of stocks needed and the costs involved.

Tshepo Malema told the newspaper that everything was above board. “I delivered, but did not get anything. I have not yet reached the stage of enquiring why I have not been paid,” he said.

Van der Walt said this could be the “tip of the iceberg”.

“Scratching deeper into our provincial tenders will reveal even more shenanigans,” she said.

“After all Tshepo Malema’s alleged tender irregularity comes only a week after National Treasury Minister Pravin Gordhan announced that henceforth his department will be monitoring all tenders over half a million, including those by provincial state departments.

“In the same week he also pointed out that the majority of tender defaulters who are blacklisted in the National Treasury’s website are from Limpopo,” she said.

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