DEPARTMENTS IN COLLUSION WITH SOME CORRUPT CONTRACTORS

Issued by: Government Communication and Information System,

The Department of Public Works' Fraud Awareness and Special Investigation Unit played a pivotal role in bringing to the attention of Ministers Stella Sigcau (Public Works) and Penuel Maduna (Justice) the existence of widespread corruption involving officials from both Departments in collusion with some corrupt contractors.

A joint task team including members of the Departments of Public Works and Justice was formed to investigate. The team focussed on repairs and renovations carried out during the period 1 January 1997 to October 1998 at numerous Magistrates' Offices and official residences in all the provinces.

The investigations revealed the following:

In view of the fact that the investigation revealed possible fraud, the Investigating Team also referred the matter to the Investigating Directorate for Serious Economic Offences for possible criminal prosecution. Efforts are continuing in an attempt to recover some of the losses.

In a separate incident in May this year a contractor tried to bribe one of the unit's Inspectors by offering him R60 000,00 to change findings in a report on the contractor's activities. In a joint operation between the SAPS Commercial Branch: Pretoria and the Directorate: Fraud Awareness and Special Investigations, the contractor was arrested and charged. The contractor already appeared in Court and was released on R10 000,00 bail.

The Department is currently probing into allegations of Fraud and Corruption at the Pietersburg regional offices of the National Public Works Department.

The Department of Public Works in its commitment to good governance and clean administration has put up measures to tighten financial management systems including increasing human capacity in the Directorate for Fraud Awareness and Special Investigation Unit.

For more information contact Lucky Mochalibane Tel: (012) 337-2057

Issued by the Government Communication and Information System
Pretoria

28 September 1999