An internal National Prosecuting Authority (NPA) audit report has again turned the spotlight on Marion Sparg, chief executive in the office of the National Director of Public Prosecutions.
Sparg has been under investigation by the Public Service Commission (PSC) since last year for alleged tender misconduct. The commission has been probing, among other things, her role in the award of a R3,2-million tender to a businessman with whom she had prior dealings.
Sparg has denied any wrongdoing, saying she takes ”issues of integrity very seriously”.
The Mail & Guardian was the first to reveal the details of the commission’s investigation. The investigation has been completed, but its findings have not been made public.
The businessman, Michael Solomon, was awarded the tender to advise the NPA on transformation issues in October 2003.
The audit report says Solomon was considered for the tender despite failing to submit an ”original and valid tax clearance certificate”. ”It is government’s policy not to enter into agreements with supppliers whose tax affairs are not in order”.
The audit report finds the NPA did not conduct a ”proper evaluation process” before awarding the contract to Solomon. It warns that the authority ”could be having business engagements with service providers that are involved in illegal activities”.
The report also says Solomon has been charging the NPA VAT although ”no proof has been submitted that the consultant [Solomon] is a registered VAT vendor”. Solomon had been paid an estimated R1,2-million and claimed more than R177 000 as VAT. NPA spokesperson Makhosini Nkosi said, ”Solomon submitted a copy of his application to the South African Revenue Service (SARS) for a tax clearance certificate. On September 29 2003 SARS issued same. We consider this to have been above board.”
Sparg’s dealings with Solomon date back to 2000. The M&G has a letter from her, dated August 31 2000, informing NPA officials about ”preparations for the forthcoming strategic planning sessions”. She refers to him as ”facilitator” of the sessions.
A further possible conflict of interests, not referred to in the audit report, is raised by allegations that Sparg told Solomon of the R3,2-million tender before it was put out for public tender. She allegedly asked him to submit a tender proposal.
Sparg, according to NPA officials, instructed an official in her office to courier tender documents to Solomon, who was working at IBM Corporation in the United States at the time.
The awarding of another tender by the NPA to IBM South Africa raises additional conflict of interests questions. IBM’s tender, worth R12,7-million, was also related to transformation issues. Solomon was instrumental in the process leading to IBM’s selection. Nkosi confirmed this, but said the suggestion of a conflict of interests is ”without merit”. Nkosi said Solomon was no longer in the employ of IBM when he sat on the NPA’s tender panel that selected IBM for the R12,7-million contract. But, questions remain whether it was approriate for a former employee to adjudicate a tender process involving IBM instead of recusing himself.
Nkosi said, ”Like all other panelists he signed a document, declaring that he had no interest in the relevant tender.”
A former Umkhonto weSizwe guerilla arrested in 1986 for bombing the John Vorster Square police station in Johannesburg, Sparg joined the NPA in April 2000. As CEO, she is in charge of all corporate services.
The PSC, responsible for monitoring and probing public servants’ conduct, ordered the investigation of Sparg after receiving anonymous complaints accusing her and other NPA officials of corruption.
In addition to the allegations involving Solomon, the PSC has been probing Sparg for her role in the awarding of subcontracts to a sister’s fiancÃ