Cabinet has cancelled the current sale process of the Komatiland forest, for which the controversial Zama Resources was named preferred bidder, Public Enterprises minister Jeff Radebe announced on Friday.
”Cabinet approved the recommendation to cancel the current Komatiland forest sale process on the basis of non-compliance with the bid rules and procedures and recommence the process with requests for new bidders,” he told reporters in Pretoria.
Radebe stressed that the cancellation was not based on any proven unlawful acts by either of the parties — Zama and its competitor, a consortium led by Indian group Paharpur.
”Several incidents which occurred during the bidding process have resulted in the bidding process being tainted.”
Senior counsel was of the opinion that the bidding process had been compromised, he said. Both Zama and Paharpur had been invited to participate in the new process.
”However, should it be found that unlawful acts were committed by either of the two bidders by any further investigation probing such unlawful acts with regard to the now cancelled process, such guilty bidder(s) will be disqualified from the new process,” Radebe said.
Zama, a black empowerment group, was named the preferred bidder for the R335-million deal in March this year.
In May, Paharpur started legal proceedings in the Pretoria High Court to have the decision of the government, the bid evaluation committee and the board of the forestry parastatal Safcol set aside.
”The reason for this application was that it was claimed that the integrity of the entire process was compromised, as a result of which the process was neither fair nor equitable nor competitive, as a result of the alleged infiltration in their bid,” the minister said.
In July, the Sunday Times published allegations that Zama chief executive officer Mcebisi Mlonzi had paid R55 000 into the bank account of Public Enterprises chief director Andile Nkuhlu, who headed the bid committee shortly before the company was named preferred bidder.
The Public Service Commission (PSC) investigated the matter. Its report indicated that breach of public service policy might have occurred, but there had been no breach of the bid evaluation process, Radebe said.
Zama has previously been cleared of bribery by two separate investigations — that of the PSC and one by auditing firm PriceWaterhouseCoopers. However, last Saturday Michelle McMaster, administrative manager at Zama, confessed to the Public Protector that she had lied in her testimony in both investigations to protect Mlonzi.
Radebe said PSC chairman Stan Sangweni on Monday sent government a letter saying it had been brought to his attention that a witness might have lied.
The PSC and the Public Protector now had to investigate whether any unlawful acts had been committed, he said.
However, the PSC’s report was sufficient basis for cabinet to take action. Government was still waiting for a report by the Auditor-General, but this was broader than just the allegations about Nkuhlu, Radebe said.
”The investigation by the Auditor-General is looking at the process of how we as government can improve our systems.” Public Enterprises director-general Sivi Gounden said government representatives met those of Paharpur earlier in the day to discuss the possibility of the consortium dropping its lawsuit.
”They have to weigh up their options now.” Nkuhlu was suspended after the allegations against him surfaced. Before the department could take disciplinary action against him as recommended by the PSC, he resigned.
Radebe said: ”We therefore have no jurisdiction to take any action against him as the recommendations forthcoming from the PSC report were confined to a breach of public service rules and recommendations…
”Effectively the matter is closed.” Asked whether Nkuhlu would receive full benefits following his resignation, Radebe said Sangweni had indicated that a resignation during an investigation of this nature was deemed to be equal to a discharge for misconduct. The PSC was looking at other broader implications of the matter.
The minister said government wanted the new tender process to commence as soon as all the legal processes of ”cleaning up” the cancelled one had been completed. It was hoped that this could be with in weeks.
”We want to get it out of the way as soon as possible.” Government would also strengthen its internal mechanisms dealing with matters of this nature.
”I will personally assume more critical control through the strengthening of internal audit procedures and ongoing checks and balances to reduce the likelihood of this type of situation recurring in the future.” He said cabinet’s decision had reconfirmed that the deal should not be tainted by impropriety.
”We believe international investors will be pleased that the South African government will not sweep (such matters) under the carpet and that any form of impropriety will be dealt with.” However, Radebe regretted the fact that ordinary rural South African people, who were part of Zama, were affected in this way.
”Unfortunately rules are rules. If they are broken there can be no justification for us to ignore them.”
Safcol chairman David Gevisser said Safcol would have no problems in continuing to manage the Komatiland forest, no matter how long the new bidding process took. – Sapa