A Department of Transport contract with one of fraud convict Schabir Shaik’s companies hangs in the balance, South African Broadcasting Corporation (SABC) news reported on Wednesday.
An announcement on the department’s dealings with Prodiba, which had been manufacturing credit-card format drivers licences on behalf of the government since 1998, was expected next week.
Shaik resigned as director of the Nkobi group of companies, but one of his subsidiaries still held shares in Prodiba. The Public Finance Management Act forbids government departments from doing business with convicted criminals.
Transport Department director general Mpumi Mpofu told Parliament’s Standing Committee on Public Accounts: ”In the month of January alone we’ve been doing a whole lot of work with respect to this matter, with particularly the state law advisors, on how we proceed … and we have firm opinion on how we should do that.”
Scopa chairperson Themba Godi asked what specific course of action was likely to be followed.
Mpofu replied: ”We will be acting on that legal advice and this committee will be duly informed … I can’t say more than that.”
Shaik and his companies stand to lose a substantial amount of money. In the first phase of the deal, Prodiba was paid R260-million.
The SABC also reported that a decision on Shaik’s 81-day stay in Durban’s St Augustine’s Hospital was expected soon.
The Correctional Services Department was studying a medical report from an independent specialist. If found fit he could go back to jail.
His medical aid, Discovery Health, was to decide on Friday whether or not to pay his medical bill, reported to be more than R500 000. – Sapa