The Special Investigating Unit (SIU) says it is probing the North West Development Corporation’s alleged awarding of three irregular multi-million-rand contracts.
They include the sale of the Christiana Hotel and Game Farm and the appointment of the Tokiso Security Company to guard government buildings in Mahikeng.
A tender was also awarded to a company of a senior national African National Congress (ANC) leader for the procurement of three-wheeler motorbikes. These contracts reportedly amount to R185 million.
The Special Investigating Unit says investigations into allegations of the irregular awarding of contracts have been under way for a while. They include the sale of Christiana Hotel which amounts to R48 million.
Another contract worth R48 million went for the procurement of three-wheeler motorbikes. The motorbikes were to assist rural communities to access services.
It has emerged that the contract was awarded and money paid but not a single motorbike was delivered. The last contract under investigation is the tender awarded to Tokiso Security to guard government buildings in Mahikeng. The alleged irregular tender amounted to R89 million.
The SIU did not want to name implicated individuals as they are still awaiting their answering affidavits.
“There is a security company that is doing business in almost all government departments and its contract was entered into in an unfair manner because it did not follow processes that it was supposed to follow, and that investigation is amounting to a contract of about R89 million. The other one we are looking into is the sale of the Christiana Hotel, we are looking at how that contract was entered into. We have already in a way found some irregularities. The other one is the invest and it amounts to R48 million,” says SIU spokesperson Kaizer Kganyago.
Opposition parties in the North West have welcomed the investigation.
“This matter must not be used for conference purposes to intimidate those who are going to contest in the national conference, to intimidate them. We want arrests to be effected because there is corruption, not because people are going to challenge the status quo,” says EFF NW provincial secretary Papiki Babuile.
“As the DA in the North West legislature, we are relieved that the SIU investigation into the fraudulent purchase contract is at an advanced stage. We hope that the Hawks and the National Prosecuting Authority will speed up the process of prosecution where needed and bring those ANC cronies to justice and return the fraudulent monies siphoned out of the North West so that this money can rather be applied to basic services,” says DA spokesperson Jacqueline Theologo.
The SIU says if those implicated should be found guilty, they will be forced to return all government’s money. This will be done through attaching their properties.
The North West government did not want to comment on the matter.
VIDEO: SIU probes North West Development Corporation for alleged irregular contracts: