DA REFERS GAUTENG TOLL CONTRACTS TO PUBLIC PROTECTOR

I have today requested the Public Protector to investigate the controversial Gauteng e-toll collection contracts, including a possible link with suspected arms deal corruption.

According to reports, there are allegations of links between Swedish companies involved in the arms deal, and the Vienna-based Austrian company Kapsch TrafficCom, which is the largest shareholder in the Electronic Toll Collection (ETC) consortium (see Daily Maverick report).

Swedish Kapsch TrafficCom holds 40% of ETC while Austrian principal Kapsch has the remaining 25%. The Swedish arm was previously part of Swedish manufacturing company SAAB Aerospace and later became part of Kapsch AG.

SAAB, which sold 28 Gripen jet fighters to South Africa in the arms deal, sold a subsidiary called Combitech Traffic Systems to Kapsch. Together with arms deal company BAE Systems, it formed a company called SANIP (Pty.) Ltd, which was the joint venture between Saab Aerospace and BAE Systems to fulfil their obligations under the Arms Deal Offset Programme, which has been revealed to be largely empty.

Saab president, Håkan Buskhe admitted in a public statement on 16 June 2011 that R24-million was paid by SANIP to former Defence Minister Joe Modise's right-hand man, Fana Hlongwane. A subsequent City Press investigation revealed that Hlongwane was also paid as much as R200-million by BAE Systems. Arms deal campaigner Terry Crawford-Browne has maintained that SANIP was set up with the specific purpose of paying bribes to leading South African officials.

In giving the background to his interdict against the e-tolls, Judge Bill Prinsloo criticised SANRAL for its secrecy on the contract with the Electronic Toll Collection (ETC) Consortium.

There are also 35 sub-contracts with ETC, all with confidentiality clauses.

The DA submitted an application last year under the Promotion of Access to Information Act to get the contracts, but SANRAL has so far not complied.

It is also disturbing that 50% of the Black Economic Empowerment stake in ETC was sold for about R70 million shortly after it was awarded the contract.

Suspicion is high that politically connected people may have benefited from the toll companies contracted to SANRAL.

Widespread public concern needs to be allayed by a full investigation by the Public Protector.

Statement issued by Jack Bloom MPL, DA Gauteng Caucus Leader, May 3 2012

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