R10m Bosasa contract with Zondo commission irregular - probe finds

2019-02-22 20:34
Chairperson for the commission Deputy Chief Justice Raymond Zondo.

Chairperson for the commission Deputy Chief Justice Raymond Zondo. (Netwerk24)

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A forensic investigation has confirmed that a R10m Bosasa contract to provide security and surveillance systems to secure the Zondo commission into state capture was awarded without procurement processes being followed.

Chairperson for the commission Deputy Chief Justice Raymond Zondo, in a statement issued on Friday confirmed News24's reportage from July 2018 which revealed the existence of the contract and that procurement procedures had been flouted.

READ: Is Zondo commission tainted?

Global Technology Systems (GTS), a Bosasa subsidiary, was "nominated" by Department of Justice and Constitutional Development officials in March last year to undertake the task, News24 reported at the time.

The contract included the installation of CCTV and access control for the offices occupied by the commission in Parktown and a three-year deal to provide physical security at the entrances to the public venues and offices, totalling R10m. 

GTS, previously known as Sondolo IT, has over the years been awarded several multimillion-rand contracts by the justice department to provide security and install systems at courts around the country.

Zondo said that GTS had now been asked to remove its equipment and cease all work.

More details on probe to be released

"After it was established that GTS was indeed connected with Bosasa, the chairperson made the position of the commission clear that in light of the connection and the fact that over many years there had been continuing allegations of corruption against Bosasa, GTS should not have been appointed or contracted or brought in to provide services to the commission while those allegations remain unresolved.

"GTS is, as of now, no longer providing any services to the commission and was asked to remove its equipment from the premises of the commission," the statement reads.

Following the News24 report, which was also published by sister newspaper City Press, Zondo stated he would probe the deal.

According to the statement, a forensic investigation, at his instance, followed correspondence he addressed to the justice department.

"The commission and the department are agreed that procurement procedures were not followed in regard to GTS, but the minister of justice will in due course inform the public in greater detail of the outcome of the investigation."

The department announced that Justice Minister Michael Masutha, together with his two deputies, John Jeffery and Thabang Makwetla, would brief the media on Monday, February 25, 2019, on the outcomes of the investigation.

READ: Liquidator moves to secure documents, computers at Bosasa head office

On Monday, Bosasa announced that the company – including GTS and nine other subsidiary companies – had been placed under voluntary liquidation after its bank, FNB, notified the company it would be closing its accounts at the end of February.

This as a result of explosive and damning testimony before the selfsame commission in January by former Bosasa boss Angelo Agrizzi.

Agrizzi revealed how the company had for nearly two decades bribed a series of government officials in exchange for multibillion-rand tenders, destroyed evidence to stymie criminal investigations and even allegedly bribed top prosecutors to keep employees out of jail.

By Friday a liquidator, Cloete Murray, was appointed by the Master of the High Court in Johannesburg. Murray moved swiftly to secure the Bosasa premises on Thursday evening and on Friday addressed staff and met with the directors of Bosasa.

Read more on:    bosasa  |  state capture  |  state capture inquiry

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