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Defence Committee to ask Minister to probe military contract

28th October 2009

By: Sapa

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The National Assembly's Defence and Military Veterans Committee has agreed to a Democratic Alliance (DA) request to ask Defence Minister Lindiwe Sisulu to investigate military procurement.

This followed a committee meeting "in which the DA was able to link two companies which are both involved in controversial tenders", DA spokesperson James Lorimer said.

"The first company is called Origin Exchange and attracted attention when it was revealed to have secured a contract of almost R108-million to clear unexploded ammunition.

"This was despite the fact that it has no track record and no resources and bid nearly R33-million more than the next highest bidder," he said.

Tracing Origin Exchange's directors linked it to an organisation called Classic One Consortium.

C1C was a joint respondent in an action launched in the Gauteng North High Court this week where logistics company Pilog SA demanded the overturning of a R142-million contract awarded to C1C without a tender process.

"In both cases, the same South African National Defence Force (SANDF) officers and officials were involved," he said.

In response to Lorimer's request to probe procurement, Sisulu told Parliament earlier this month that should the portfolio committee require her to investigate the matter, "I am open to that".

"The committee will now formally ask for such an investigation."

During a committee meeting on Wednesday, questions on the Origin Exchange deal "were avoided by the defence establishment" who referred to an investigation undertaken by the SANDF Inspector General.

The committee also agreed to ask the minister to ensure that report be shown to the committee when it was completed, Lorimer said.

 

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