Two contracts were awarded to the companies to build security and perimeter fences for the Department of Correctional Services.
A ruling by the Special Tribunal will force five companies to repay the proceeds earned on multi-million rand contracts.
The five companies were awarded contracts by the Independent Development Trust (IDT), contracts which have been set aside for review by the tribunal, it was announced on Tuesday.
The Special Tribunal is an arm of the Department of Justice whose mandate is to recover public funds lost through corruption and irregularities.
Profits on R1.6 billion contracts to be returned
The IDT falls under the Department of Public Works and Infrastructure and the reviewed contracts were for work done for the Department of Correctional Services (DCS).
A Special Investigating Unit (SIU) probe into DCS dealings found that the IDT failed to follow proper procurement procedures for contracts that would later run over budget.
ALSO READ: Western Cape couple accused of using nine-year-old daughter to commit R13 million fraud
Three companies, Secelec Consulting Engineers, Bakone Consulting Engineers and Bakone Secelec Consulting, were given R492 million to build fences around multiple prisons.
Another contract with an eventual budget of R861 million, also for fences and communication equipment, went to Manyeleti Consulting and SA Fence and Gate.
“Following the calculations of expenditure to service the now illegal contracts, the companies shall pay whatever profits that were earned,” stated the tribunal.
“Furthermore, the companies were ordered to cover the legal costs of the review application brought by the SIU,” the tribunal added.
R2.2 million SASSA fraud
The 54-year-old South African Post Office (Sapo) employee appeared in the Pretoria Specialised Commercial Crimes Court recently on at least 80 counts of theft and fraud.
ALSO READ: Man arrested for allegedly defrauding Sassa and Post Office of R2.2 million
Sepheka Masooa was accused of channelling roughly R2.2 million from the South African Social Security Agency (Sassa) payments system, through the post office and into the accounts of ghost recipients.
It is alleged that fictitious accounting entries were made on the system reflecting payments to beneficiaries.
Masoosa attracted the attention of detectives by conducting his alleged fraudulent activities outside of Sapo operating hours.
.
