On Tuesday, the Democratic Alliance (DA) confirmed that the first phase of the nuclear deal has been found to be corrupt by the Auditor-General (AG).
The DA is in possession of extracts of the AG’s forthcoming report for the financial year ending 31 March 2017.
Gordon Mackay, DA Shadow Minister of Energy says this means that the first phase of the nuclear deal which essentially entails procuring a management system, an advisory service which informs the department on how to move ahead with the transaction has been deemed irregular and unauthorised.
In laymans terms really means it is illegal.— Gordon Mackay, DA Shadow Minister of Energy
The statement released by the DA cites that the original amount of the contract was also inflated from R60 000 to R171 million by the Department of Energy (DoE).
The very fact that there is a deviation in price tells you there is something wrong with this contract and couldn't have piggy backed on the so-called Free State contract which is what the department has claimed and raises red flags explains Mackay.
Mackay adds that Vivian Reddy and one of President Jacob Zuma's son as well a few members of the department seem to have benefitted directly from the contract.
The statement also says the DA is reliably informed that the Director General, Thabane Zulu, has refused to sign off. It also says this may be due to the allegations, as indicated in media reports last week, that Mr Zulu may have played a direct role in both irregular contracts.