Gigaba must assure Parliament that R70 billion contract with Chinese is above board

The DA calls on Finance Minister, Malusi Gigaba, to assure Parliament and the South African public that two mega-contracts between government and Chinese parastatals will not go ahead without the procurement laws being adhered to.

According to media reports, the Water and Sanitation Department as well as the Passanger Rail Agency of South Africa (Prasa) are in the process of handing contracts worth R70 billion to Chinese parastatals without a public tender or permission from Treasury to bypass tender laws.

Minister Gigaba must urgently account for Treasury’s alleged planned deviation in the competitive tendering process  and make an assurance that due procedure will be followed before handing over these R70 billion contacts to Chinese companies without the proper tendering process.

The last thing that South Africa can afford right now is another corrupt multi-billion rand intergovernmental tender deal. Earlier this year the Western Cape High Court ruled that the process leading to government signing agreements with Russia for a nuclear contract was “flawed, unconstitutional and not in line with sound decision making”.

The DA will not allow an attempt at grand corruption of this sort to transpire again and we will use all available avenues to challenge the lack of due process in these deals. Treasury must account to parliament on its involvement in these negotiations and provide a full disclosure on whether the legal tender process is being followed.

The DA will pose these questions to Treasury when it appears before the Standing Committee on Finance on Wednesday next week. Minister Gigaba must act in an open and accountable manner to the South African public on this massive deal that currently seems to be flouting all competitive tender processes.

Statement issued by Alf Lees MP, DA Shadow Deputy Minister of Finance, 10 September 2017