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PROBE GUDUZA, KHANDLELA COMPANY TENDER – MPS

29/11/2022 08:41:00 Timothy Simelane

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LOBAMBA – The controversial award of a multimillion Emalangeni tender for the installation of an electronic visa issuance system (e-visa) will be subjected to an independent investigation after a robust debate by Members of Parliament (MPs) yesterday.

The actual worth of the tender remains indefinite, according to a report tabled by Deputy Speaker Madala Mhlanga in the house of Assembly yesterday. After a preliminary investigation, Mhlanga, who is the Chairperson of the Ministry of Home Affairs Portfolio Committee, found that the tender had a price tag of E5 million in one part, while another version states that the tender is worth E263 million. The company that was awarded the work is Crypto Technology (Pty) Ltd, and is co-owned by Land and Minerals Board Chairperson Prince Guduza and Royal Protocol Officer Khandlela Mdluli.

Adoption

At least 31 MPs voted for the adoption of the report, which means the tender will be investigated independently, while only 11 said the report must not be adopted. Not adopting the report means that the project goes ahead unabated. MP Mhlanga’s committee was also tasked to investigate if there was any conflict of interest in the issuance of the tender, given that Prince Guduza is brother to Minister of Home Affairs Princess Lindiwe whose ministry is the custodian of the e-visa work. The portfolio committee cleared the key players of any conflict of interest but found serious irregularities with the issuance of the tender. They revealed to the House that the company was actually awarded the tender despite lacking in crucial documents that were mandatory for the award of a tender.

In the first instance, Mhlanga said the company did not have a tax clearance certificate when it won the tender. On another note, he said it did not have a registration certificate, in that the directors only produced a certificate a month after it had already been awarded the work. Mhlanga’s report also details that the company scored 77 per cent in the tender point scoring system, while the company that was not so lucky, HDI Global, scored 87 per cent. He said his committee was also appalled to discover that the company was actually registered six months before it was awarded the tender.

After detailing the summary of the report, MPs were locked in four hours of robust debate, with some saying there was no need to set up a probe, while others said the tender had hallmarks of alleged corruption and fraud that should be unearthed and those responsible be dealt with. “We found that the tender process was closed on April 23, but the company submitted a licence that had been issued on May 26 2021.” Mhlanga said it was on these grounds that his committee recommended that the Prime Minister’s office should be tasked to set up an investigation into the issuance of the tender. He said the scope of the committee was confined to the Ministry of Home Affairs and did not touch on the other role players in the issuance of the tender. One of the recommendations was that the implementation of the system must be suspended while investigations were being conducted.

MP Mhlanga was seconded by MP Nokuthula Dlamini, who said a commission of inquiry would best unearth the alleged violation of procedures in as far as the tender was concerned.
Shiselweni 2 MP Strydom Mpanza was first to support the report, saying it was unheard of in the history of the country that a company would be awarded such work without producing a tax clearance certificate. “This is daylight robbery. I don’t understand how such a tender could be allowed to go through when the country is faced with such problems. We represent the people here, we have to be resolute in such matters. I ask that the report be adopted,” he said.

Meanwhile, Mangcongco MP Oneboy Zikalala reminded the MPs that hospitals were running short of medications while the economy was shaky. “We cannot allow such a huge amount of money to go away just like that,” he said.

Penalised

Mkhiweni MP Michael Masuku said those who were responsible for awarding the tender should be penalised after the probe. “Let this be a lesson to everyone that we do not tolerate corruption,” he said. Ngudzeni MP Big Boy Mamba said the attorney general (AG) could shed light on the issue, given that the report tabled by Mhlanga did not state if all concerned parties were interviewed. Kwaluseni MP Sibusiso Mabhanisi Dlamini also said the report said nothing about the procurement committee, which would have shed light on the questions raised in the report. “It is not clear how the report arrived at all the findings that are being mentioned. Lomunye umuntfu angafela nje kutsi utalwa kuphi,” he said, meaning if a shoddy job was done, one would be penalised just for their birthright. He also said there was no law prohibiting a company less than six months old to be awarded a tender.

Assessment

Mahlangatsha MP Musa Ngcobo said his assessment was that the alleged corruption started even before the company was awarded the tender. He asked MPs to adopt the report and its recommendations. Motshane MP Robert Magongo said to his knowledge the company was already at work, which cast doubt on the MPs ability to intervene at this stage. He also wanted to know if the Home Affairs Portfolio Committee had any mandate to investigate the issue. “It is not clear where they took their information from, especially the scores. It looks like they just called a retired Sabelo Masuku and asked him questions,” he said. MP Magongo said a draft contract for the company was done with all parties involved and that the AG gave his advice on the matter.

Ndzingeni MP Lutfo Dlamini said even if other parts of the report were questionable, the fact that the company was awarded a tender without a tax clearance certificate and a registration certificate meant there was violation of procedure in the issuance of the tender. Lobamba Lomdzala MP Marwick Khumalo, who had promised to speak on an objective point of view, said there was everything wrong with taking a procurement issue and subjecting it to a parliament committee. He reminded the MPs that the issue should have been blocked at budgeting stage. “If we allocated a budget for this issue, then how can we bring it up for investigation now?” he asked.

Khumalo also said procedure was such that if MPs were intending on probing the matter, they should have appointed a select committee first and further drafted its terms of references.
He also warned that there could be legal implications if the MPs were to suspend the tender yet it had already been issued. “Angeke uteke indzaba ibe ngumjeje nje,” he said, meaning that MPs could not just do half the work and not involve all the other essential processes in the issuance of the tender. “They said the minister is Prince Guduza’s sibling. If they are related, is he not supposed to venture into business?” MP Khumalo asked.