DA asks Auditor-General to investigate unnecessary R81 million advance payment to Zuma benefactor

The Democratic Alliance will write to the Auditor-General (A-G), Mr Kimi Makwetu, to ask him to investigate why wealthy Zuma crony, Philani Mavundla, was given a R81 million advance payment on a tender to address acid mine drainage.

While empowerment deals do include advance payment as many companies who win bids do not always have the capital, in this case the beneficiary is a wildly wealthy crony of Zuma, who doesn't need or deserve upfront payment.

Reports indicate that Philani Mavundla’s company, CMC-PG Mavundla EB JV, was given advance payment of R81 million on the tender despite having been informed during contract negotiations that they will not be getting any.

Mavundla’s reported links to President Jacob Zuma and his much publicised offer to pay his Nkandla debt, brings into sharp focus the extent of state capture on state enterprises by Zuma’s cronies to benefit number one.

As the political head of the Department of Water and Sanitation, Minister Nomvula Mokonyane needs to explain her knowledge of and the authorization given to facilitate the advance payment to Mavundla’s company.

The DA looks forward to a timely conclusion of the A-G investigation and the possible prosecution of all those responsible for violation of State Procurement regulations. Its findings and recommendations will help to insulate future tender processes from possible corrupt tendencies from those who enjoy the political cover provided by number one.

Statement issued by  Leon Basson MP, DA Shadow Minister of Water and Sanitation, 21 May 2017