R23M LEFATSHE CONTRACT MUST BE INVESTIGATED

A full investigation is needed into the R23 million IT contract the Gauteng Finance Department gave to Lefatshe Technologies last year without going out to tender.

Lefatshe is a politically-connected company that has faced serious corruption allegations and is currently being investigated by the Hawks for various contracts, including a multi-million rand contract with the Westonaria municipality.

A R65 million Lefatshe contract with the Road Traffic Management Corporation was cancelled after a task team appointed by former Transport Minister S'bu Ndebelele in 2010 found substantial irregularities and recommended legal action to recover R15 million that it was overcharged.

Lefatshe chief executive Coltrane Nyathi was also allegedly caught giving a R200 000 bribe to a Department of Home Affairs official to secure a R20 million contract.

According to former Gauteng Economic Affairs MEC Firoz Cachalia, a forensic inquiry by the Resolve Group in 2010 criticized the conduct of Mr Keith Khoza with regard to a Lefatshe contract. Khoza was formerly head of the Gauteng Liquor Board and is presently an ANC spokesperson. I have requested a copy of this Resolve Group report under the Promotion of Access to Information Act, but the Department has refused to make it public.

It was revealed in 2009 that Lefatshe gave lavish gifts to former Gauteng Director-General, Mogopodi Mokoena, including flights and accommodation for a golf weekend and Jazz festival in Cape Town.

Furthermore, former Lefatshe CEO Noedine Isaacs-Mpulo used to chair Blue IQ, an agency of the Gauteng Economic Affairs Department.

We need to know why Lefatshe was given a R23 million contract by the Gauteng Finance Department without going out to tender. The DA will demand answers in the Public Accounts Committee of the Gauteng Legislature, and will push if necessary for criminal prosecution in this very fishy matter.

Statement issued by Jack Bloom MPL, DA Gauteng Caucus Leader, November 13 2012

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