In keeping with our zero-tolerance approach to corruption, ActionSA wrote to the Auditor-General (A-G) of South Africa requesting a real-time audit to be conducted on all 25 companies listed on KwaDukuza Municipality’s panel for roads rehabilitation.
ActionSA drew the Auditor-General’s attention to the R1,2 billion disaster grant received by the municipality and the conflicts of interest in some of the participating companies. ActionSA also flagged a company called Benijvert, the owner of which is alleged to be owning two other companies on the panel, namely Yena Uyabusa and Grace and Goodness. Multiple tenders have already been awarded to these companies.
The A-G subsequently investigated the allegations and reviewed the appointment processes of the panel of contractors.
In their response letter, the A-G confirmed that indeed conflicts of interest were identified in some participating companies. The A-G also identified several aspects of non-compliance with supply chain legislation. With regard to the 3 companies, Benjivert, Yena Uyabusa and Grace and Goodness, the A-G found several discrepancies in the documents submitted during the bidding process.
ActionSA is elated that the A-G has corroborated their suspicions of tender irregularities, and the possibility of fraud, in KwaDukuza Municipality as far the R1,2 billion grant is concerned. The Auditor-General’s office has committed their findings and risks identified to the municipal management for attention.
ActionSA will ensure that consequence management measures are instituted against those found guilty.
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