SA Tourism spends R9.6 million with Guptas' PR agents

12 June 2017

The DA is deeply concerned that the South African government has spent R9.6 million on the PR services of Bell Pottinger, at the same time that the Guptas were using Bell Pottinger to sow racial division in South Africa.

A reply to a DA Parliamentary Question has revealed that SA Tourism, an entity under the Department of Tourism, hired Bell Pottinger, on a 3 year contract from 2014 and paid them approximately R9.6 million.

The DA will therefore write to the Tourism Portfolio Committee Chairperson, Beatrice Ngcobo, to call on the Tourism Minister, Tokozile Xasa, to justify this large amount of money spent by the Department at Bell Pottinger and to table the full contract with Bell Pottinger.

We believe that there is a disgraceful conflict of interests for Bell Pottinger to be on the South African government payroll at the same time as the Guptas were paying them to sow division in South Africa.

No ethical firm could accept business to both advance and damage a country at the same time.

The DA will demand a full justification for this spending from the Tourism Minister, and we will seek an explanation for how SA Tourism continued to pay Bell Pottinger after the Gupta scandal emerged numerous months ago.

Text of the reply:

Ref: TM 2/1/1/10

NATIONAL ASSEMBLY:

QUESTION FOR WRITTEN REPLY:

Question Number: 1508

Date of Publication: 26 May 2017

NA IQP Number: 18

Date of reply: 12 June 2017

Mr S C Motau (DA) to ask the Minister of Tourism:

Whether (a) her department and (b) each entity reporting to her procured any services from and/or made any payments to (i) a certain company (name furnished) or (ii) any other public relations firms; if not, in each case, why not; if so, in each case, what (aa) services were procured, (bb) was the total cost, (cc) is the detailed breakdown of such costs, (dd) was the total amount paid, (ee) was the purpose of the payments and (ff) is the detailed breakdown of such payments?  NW1650E

(b)  DEPARTMENT

(i)  Certain company- (Bell Pottinger)

(aa) The Department has never procured the services of the certain company ( Bell Pottinger)

(bb) – (ff) Not applicable

(ii) Any other Public Relations Firms

(aa) The Department has never procured the services of any Public Relations Firm

(bb) - (ff) Not applicable

(c) SA TOURISM

(i) Certain company- Bell Pottinger LLP

(aa) Services Procured

Bell Pottinger LLP was appointed by the SA Tourism UK Office for a period of 3 years effective 1 January 2014 following an open tender process in the UK. The services were for Public Relations including Digital PR and Online Communications to complement and align to existing media buying, events and social media services in order to complete a 360°consumer and trade engagement.

The UK tender has recently been reissued and a new service provider will be in market from 01 July 2017.

(bb) Total Cost : R 8 611 281

(cc) Detail breakdown of such cost: Refer to Annexure A

(dd) Total amount paid : R 9 600 858

(Variance between procurement amounts and amounts paid are due to foreign currency rate fluctuations where the foreign currency exchange rate was higher at payment date)

(ee) Purpose of Payments

 Payments were made for work agreed and delivered in good order as per the scope of work contracted for under question b (i) (aa)

(ff) Detailed breakdown of payments: Refer to Annexure A

(ii)   Any other Public Relations Firms

(aa) Services Procured:

The PR agencies were appointed by the SA Tourism Offices following open tender processes. The services were for Public Relations including Digital PR and Online Communications to complement and align to existing media buying, events and social media services in order to complete a 360°consumer and trade engagement.

(bb) Total Cost: R 38 472 101

(cc) Detail breakdown of such cost: Refer to Annexure A

(dd) Total amount paid: R 40 678 690

 (Variance between procurement amounts and amounts paid are due to foreign currency rate fluctuations where the foreign currency exchange rate was higher at payment date)

 (ee) Purpose of Payments: Payments were made for work agreed and delivered in good order as per the scope of work contracted for under question b (ii) (aa)

(ff) Detailed breakdown of payments: Refer to Annexure

ANNEXURE A

PR Agencies utilised by SA Tourism between April 2016 and May 2017

Issued by Parliament, 12 June 2017

ENDS

Issued by James Vos, DA Shadow Minister of Tourism, 12 June 2017