Watergate: Service provider paid R81 million in advance

According to City Press reporter Sipho Masondo, a close friend of President Jacob Zuma was paid R81 million advance on a R1 billion tender by an entity of the Department of Water and Sanitation, Trans Caledon Tunnel Authority.

Masondo says an advance like that defeats the whole purpose of wanting people to bid for tenders. He adds that if an advance is going to be offered to the service provider chosen for the tender, that option should be mentioned in the tender document, which in this case was not.

Another red flag is that the plant built by this company was finished and commissioned in June 2016 but according the information we've received the company continued claiming construction costs until February 2017 when the construction was finished at least 6 months prior.

Sipho Masondo, Investigative journalist for City Press

However, spokesperson for the department’s entity, Wanda Mkutshulwa, insists the advance payment was regular. She referred to a clause in the treasury regulation which allows for a 10% upfront payment to service providers.

In the pre-appendix of the tender it was mentioned that there will be a 10% upfront payment that will be made, so it is not true that this was not mentioned in the tender document.

Wanda Mkutshulwa, spokesperson for Trans Caledon Tunnel Authority.

Mkutshulwa says the contract allows a 12 month period to do non critical work but in this case the departments through the right channels and procedures requested operations and maintenance which is separate form the initial contract.

To hear more of this interview, listen below:


This article first appeared on CapeTalk : Watergate: Service provider paid R81 million in advance


Recommended

by THE NEWSROOM
Read More
Tiger Bay The Musical has a universal message of immigration and community

Tiger Bay The Musical has a universal message of immigration and community

The musical was brought to life by composer Daf James who chats to Africa Melane about the show.

Pityana: ANC deflecting from Zuma's misdemeanour

Pityana: ANC deflecting from Zuma's misdemeanour

Save SA's Sipho Pityana says Zuma must explain his reliance on a dubious intelligence report to justify his Cabinet reshuffle.

Pension fund administrator cook books after losing R255 million

Pension fund administrator cook books after losing R255 million

According to City Press reporter, Sipho Masondo, Bophelo Beneficiary Fund lost money belonging to families of deceased mine workers

Pick your own roses (and drink coffee) in urban rural tranquility

Pick your own roses (and drink coffee) in urban rural tranquility

Chart Farm in Wynberg Park is a hidden gem where you can sip coffee, pick your own roses and drink in views of local vineyards.

Why today’s marches in Pretoria (and court proceedings!) may be a turning point

Why today’s marches in Pretoria (and court proceedings!) may be a turning point

The Money Show’s Bruce Whitfield interviews Nic Borain, Consultant at BNP Paribas Securities South Africa.

Popular articles
I was not introduced to Ajay Gupta - Grootes

I was not introduced to Ajay Gupta - Grootes

Stephen Grootes says he believes former Eskom CEO Brian Dames when said he was not formally introduced to the Gupta family.

Minister Zwane confirms trips to Dubai and Switzerland

Minister Zwane confirms trips to Dubai and Switzerland

EWN parliamentary correspondent Gaye Davis says Mineral Resources Minister Mosebenzi Zwane received detailed and tough questions.

Vavi: I can't sleep at night for making Zuma the president

Vavi: I can't sleep at night for making Zuma the president

Zwelinzima Vavi says South Africa is paying dearly for choices they've made in being angry with Mbeki and not thinking logically.

Zweli Mkhize 'taken by surprise' with latest cabinet reshuffle

Zweli Mkhize 'taken by surprise' with latest cabinet reshuffle

The ANC treasurer-general confirmed Mantashe’s comments that the President did not consult the ANC leadership on the reshuffle.

Zuma is paying it forward and stacking the deck in his favor - Brown

Zuma is paying it forward and stacking the deck in his favor - Brown

Political analyst Karima Brown says the latest Cabinet Reshuffle is a move to strengthen his hand at the December conference.

"Duduzane Zuma is the Gupta family's greatest asset"

"Duduzane Zuma is the Gupta family's greatest asset"

Sunday Times journo Thanduxolo Jika who broke the front page story about the Gupta family emails vouches for their authenticity.

So what exactly is radical economic transformation?

So what exactly is radical economic transformation?

Wits associate professor of economics Christopher Malikane speaks to Azania Mosaka about the term that is being bandied about.

‘My worst fear is being 80 years old and poor’ – famed actor Dr. John Kani

‘My worst fear is being 80 years old and poor’ – famed actor Dr. John Kani

"My earliest memory of money is my father saying, ‘Why do you want to do this thing? How are you going to feed the family?'"

Who is Advocate Tembeka Ngcukaitobi?

Who is Advocate Tembeka Ngcukaitobi?

The EFF lawyer stole the show during the state capture report court battle.

3 easy questions could bag you R2000!

3 easy questions could bag you R2000!

WIN R2000! But only if you can prove you're a whiz of the MTN Biz Quiz by answering the following three questions...