PAC LABELS COMMERCE ‘ROTTEN’, CALLS FOR PROBE

LOBAMBA – Sheer rot! That is how operations at the Ministry of Commerce, Industry and Trade were described by the Public Accounts Committee (PAC), which described the ministry as corrupt and called for the police to not only investigate it, but also arrest individuals.

This transpired yesterday when it was revealed that the ministry had made large payments to one construction company (Heptagon Construction) without the proper documentation in place.

The PAC was informed that Heptagon Construction had been paid about E80 million in some instances without the engineer’s signature on the certificate and without the six copies needed before payment was processed.

This was after the construction company was contracted to construct Phase II of the New Industrial  Estate in Matsapha. 
During the sitting, it transpired that after being awarded the contract, Heptagon Construction had hired MC Masuku and Co as a consultant or resident engineer, allegedly at a fixed payment of E60 000 per month.

Eventually, public funds amounting to E1.7 million were paid to MC Masuku and Company, which should not have been done because government had not engaged Masuku as a consultant.

PAC Chairperson MP Phila Buthelezi said the money paid to MC Masuku should not have been paid by government because the company had not been engaged by the latter. “It is clear that Heptagon hired his own friends because government does not have any contract with Masuku,” said Buthelezi.
The PAC said Heptagon had to refund government the E1.7 million as soon as possible.

rich

Lubombo Region MP Lorraine Nxumalo said it was clear that the ministry was in the business of making people rich, adding that there was absolutely no reason why it had to pay a company it had not entered into a contract with. The controlling officer at the ministry is Siboniso Nkambule.

MP Roy Fanourakis, in his submission alleged, that there was a lot of misappropriation of funds when the company was awarded the tender.
He wanted Nkambule to produce a contract which stated that Heptagon could then hire its own consultant or resident engineer yet the ministry had its own in-house engineer.

The PS informed the PAC that they were advised by the ministry’s engineer, Caleb Motsa, that in the construction industry, there was nothing wrong with the contractor employing his own consultant. However, what was noted to the ministry was that government was not supposed to pay the private consultant.
Mangcongco MP Oneboy Zikalala also wanted the ministry, through its legal advisor, to show them the exact clause which mentioned that in the contract.
However, after much perusal, it was revealed that there was none such clause in the contract.

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