South Africa has suspended one of its key directors in the multi-billion rand privatisation programme following allegations of corruption.
The Public Enterprises department has also launched a formal investigation.
Andile Nkhulu a chief director in the Public Enterprises Department is alleged to have received R55 000 from a consortium that won a R335-million tender for parts of state-owned forestry group Safcol’s plantations.
He was part of the three-men panel that recommended Zama Resources Corporation’s bid for the Komatiland plantations.
”On the basis of the circumstantial evidence…I have agreed with Mr Nkhulu that it is in the best interest of the Department that he accept immediate suspension,” said Director General Sivi Gounden.
South Africa is on a privatisation drive to attract foreign investors to the country, in an exercise expected to net about R40-billion by the end of 2004.
During the current fiscal year which ends in March next year, privatisation receipts are expected to come in at R12-billion — with at least R10-billion from the listing of telecoms group Telkom.
Although the focus has been on the so-called big four — Telkom, arms group Denel, power utility Eskom and transport group Transnet — other transaction are taking place on the sidelines, including Safcol.
But in the wake of the corruption allegations, it is likely that the sale of the 130 000 hectares of the Komatiland plantation might be reviewed.
”We are playing a central role in the restructuring of state assets for the long-term benefit of all citizens,” said Gounden.
”The entire process could be placed at risk if an impression is formed that would accept anything less than total integrity made visible in a transparent and open process.”
Nkhulu was also in charge of the restructuring of rail operator Spoornet. – Reuters