24 August 2000
Issued by: Department of Public Works
Swift action by the Department of Public Works prevented the Department from losing R332 740 00 to corrupt contractors and officials at their Durban Regional Office.
A senior official in the Department, Mr Eric Ramsamy, has already appeared in the Durban Magistrate's Court on two charges of fraud and is currently on suspension from the department. Departmental misconduct proceedings against this officer have already commenced. Nine other officials are under investigation pending possible charges of misconduct.
Criminal charges are being finalized against 8 companies. The probe by the audit team revealed collusion between some contractors and departmental officials which amounted to criminal practices.
These include issuing invoices for services which were not rendered, misrepresenting values of invoices, accepting payments to allocate government work unprocedurally and having undeclared interests in businesses doing work for the department.
Evidence of fraudulent invoicing amounting to R2 million is being investigated against two companies, and criminal suit is expected to follow.
Historical lack of proper management systems including poor quality controls at the Durban Regional Office appear to be the lure of such criminal tendencies. In the past year 5 officials were dismissed for corruption related charges.
In reaction to the findings of the investigation, the Minister of Public Works, Ms Stella Sigcau, said: "This demonstrates our resolve to deal effectively and comprehensively with corruption, wherever it might rear its ugly head.
"Our efforts to route out corruption in Public Works and maximize the impact of our service delivery are beginning to pay off and this is encouraging especially as we prepare to convene a National Anti-Corruption Conference of all Public Works Departments in the country in October this year. This follows the adoption of a 5 Point Anti-Corruption Plan by the 9 MEC's and myself in October last year" The Minister hailed the excellent work performed by the audit team and praised the co-operation shown by other officials in isolating bad elements in their midst.
Contact : Mr Lucky Mochalibane, Chief Director: Communications
Tel : 012 337 2057
Cell : 082 899 9775
ISSUED BY GOVERNMENT COMMUNICATIONS (GCIS) ON BEHALF OF THE DEPARTMENT OF PUBLIC WORKS