In Gauteng, South Africa, government leaders have been confronted about a contract between Abalozi Security and the Gauteng Roads and Transport Department.
According to details from Jack Bloom, MPL, DA Gauteng Corruption Spokesman, Abalozi’s contract was terminated earlier this year after being paid R71 million since October of 2007. Bloom compiled the information in a written response to questions from former Gauteng Roads and Transport MEC Bheki Nkosi.
Abalozi Security is owned by the family of Siphiwe Nyada, the now former Communications Minister of Gauteng, and there is the possibility Nyada’s family company was chosen to better his own personal agenda financially.
Of the overpayments to Abalozi, Bloom discloses that instead of paying just over R49,000 to Freedom Fighters Services to guard the Urban Transport Fund Command Centre, Abalozi was payed R410,000.
The biggest discrepancy Bloom found was a payment of R747,000 to Abalozi for what he referred to as “g-Fleet risk assessment, fraud protection and forensic investigation” that has been eliminated altogether.
The cancellation of the contract saves Gauteng about R2 million per month or about R24 million per year. Gauteng’s Public Protector urged Premier Nomvula Mokonyane to begin further investigation to any failures in the administration and improper conduct that may have led to the mistakes.
This investigation could have major impact on businesses throughout South Africa as many companies have services specifically for the governments in the province. On the other hand, it could make officials more wary about who they choose to do business with and make sure business transactions are done fairly.