Empowerment company Zama Resources will know on Wednesday whether it will remain the preferred bidder in a multi-million rand forestry privatisation deal tarnished by a bribery scandal.
Public Enterprises Minister Jeff Radebe is expected to announce the fate of the R335-million Komatiland deal after Wednesday’s Cabinet meeting.
The minister’s special adviser, Ian Phillips, said on Tuesday there were still ”one or two things” to be decided, but an announcement on the deal was ”imminent”.
Government has to decide whether to re-open the tender, after calling for the office of the auditor-general to investigate the evaluation process.
Concerns around the bidding process heightened earlier this year when it emerged that Zama’s CEO, Mcebisi Mlonzi, since suspended, had deposited
R55 000 into the account of former Public Enterprises chief director Andile Nkuhlu, shortly before the company won the bid.
Nkuhlu, who headed the bid committee dealing with the contract, was supsended pending an inquiry by the Public Service Commission.
He announced his resignation late last week, citing a breakdown of trust between himself and the department.
The losing bidder, Indian firm Paharpur — which has challenged the choice of Zama as preferred bidder in court — has reportedly stated it is unlikely to tender for a second time if the process is re-opened.
Zama acting CEO Dr Mlungisi Kwini said he was sure Cabinet would do the best thing for the good of the country.
Referring to Zama’s diverse shareholding, he said it would be ”a travesty if they were to suffer due to something that had nothing to do with the Komatiland bid”.
Mlonzi would remain suspended from his position until further notice, Kwini said.
The company’s board had also taken various decisions to bring management at the company in line with the King II report on corporate governance.
Zama has been cleared by two separate investigations, conducted by auditors PricewaterhouseCoopers and the Public Service Commission (PSC) of bribery, but those findings were compromised by revelations over the weekend.
The Sunday Times revealed that the company’s administrative manager, Michelle McMaster, confessed she had lied in her testimony to PricewaterhouseCoopers and the PSC.
This was reportedly to cover up for her boss, Mlonzi, and to save her company from losing the forestry deal.
The PSC cleared Nkuhlu of ”unduly influencing” the awarding of the contract, but found he transgressed public service regulations and breached a confidentiality agreement by being in regular contact with Mlonzi.
Non-executive director Dr Gordon Sibiya resigned from the Zama board of directors on Monday, citing serious management and corporate governance problems. – Sapa