R378m prisons tender 'was above board' - company

2016-04-14 18:25
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Durban – Integritron Integrated Solutions said on Thursday that everything was above board when they were awarded a multi-million-rand "irregular" tender from the Department of Correctional Services.

It has also insisted that there was no conflict of interest.

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

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.

SA Fence and Gate, in particular, 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 and Gate is an ANC donor and belongs to the governing party's Progressive Business Forum (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.

According to Greyling, Integritron "opened communication with the National Commissioner and Treasury, after the tender was awarded, to ensure that the process was not irregular".

He said, in response, an open letter from the National Commissioner was addressed to Treasury on January 11 2016.

The letter read: "An open and transparent process was used to invite suitable bidders to submit proposals in respect of the above-mentioned bid. Only one service provider, namely Integritron, met the minimum threshold on functionality... Only Integritron qualified for demonstration, as well as phase 2 [Financial Evaluation].”

The letter said Integritron’s proposal was sound and found that it responded to the specifications of the bid as advertised, and the company’s financial proposal was found to be reasonable and cost-effective in that it was within DCS’ pre-tender estimate.

Disagrees with Treasury

Read more on:    prisons  |  government spending
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