Gigaba washes his hands of Gupta-related contracts at Eskom, Denel

Home Affairs Minister Malusi Gigaba has washed his hands of Gupta-related contracts with state-owned enterprises during his tenure as public enterprises minister.

He was delivering his testimony before the portfolio committee on public enterprises on Tuesday. He spoke specifically to Gupta-related contracts with EskomDenel and Transnet.

“This topic is challenging as the extent of Gupta-related corruption is only now surfacing. It is becoming increasingly apparent that even tenders that appeared lawful may have been tainted,” he said.

“At Eskom, the primary issues that have attracted attention were Trillian, the Regiments saga, and Tegeta. All of these occurred outside of my tenure at DPE (department of public enterprises). I cannot therefore comment on them.

“The only interaction I had in relation to Tegeta, is when I ordered a forensic investigation in 2017 as the minister of finance,” he said.

With regard to Denel, Gigaba said he is also only aware of the VR Laser Asia partnership which also happened after his tenure at the DPE.

“As minister of finance, I did not give concurrence to the VR Laser proposal.”

Gigaba however spoke on Transnet contracts, particularly the procurement of 1 064 locomotives.

The contract, submitted to Gigaba for his approval in May 2013, was estimated to cost R38.6-billion over a seven-year period. In June 2013 he received a decision memorandum wherein the business case for the tender was made.

READ MORE: How to eat a parastatal like Transnet – chunk by R600m chunk

“In summary, the new locomotive purchase was going to create value for Transnet,” he said. The tender would also lead to benefits for the economy, including R68bn in localisation, the development of manufacturing skills and the creation of jobs, among other things.

Gigaba said that he was advised that an “enhanced governance process” was in place for the acquisition. A locomotive steering committee (LSO) was established and mandated by Transnet’s Executive Committee and chaired by the Group CEO.

“I was satisfied with the business case, and I approved the memorandum on 3 August 2013,” he said.

Gigaba explained he was not involved in the procurement of locomotives and was only involved in the process of granting authorisation under the Public Finance Management Act (PFMA).

With regard to The New Age newspaper’s Sponsored Breakfasts, Gigaba said in 2011 he became aware that New Age was looking to sponsor Transnet and Eskom for business breakfasts.

“I was upset about these sponsorships because it was a large sum of money, even though it was below the materiality threshold and was strictly within the operational purview of the board.

“I felt it was inappropriate that such large sums of money were being spent on breakfast sponsorships, especially in the midst of such large-scale build projects that were being undertaken.”

Gigaba then issued a directive that all sponsorship requests be routed through the department.

By 2013, the Public Protector had initiated an investigation into the sponsorships. “I was informed that the Public Protector’s main focus was an investigation into fruitless and wasteful expenditure at Eskom, Transnet, SABC and Telkom, and the allegation that the Department exercised undue influence on those companies in deciding to sponsor the TNA breakfasts.

READ MORE: Parastatals ‘bullied’ into supporting the ‘New Age’

“It is apparent from what I have just stated, and from the written instructions that I sent to the chairs of the SOC’s (state-owned companies) that I was doing the opposite of militating in favour of the TNA sponsorships,” he said.

Lameez Omarjee
Lameez Omarjee
Parliamentary reporter at Fin24.com
Advertisting

‘Judge President Hlophe tried to influence allocation of judges to...

Deputy Judge President Patricia Goliath accuses Hlophe of attempting to influence her to allocate the case to judges he perceived as ‘favourably disposed’ to former president Jacob Zuma

SAA grounds flights due to low demand

SAA is working to accommodate customers on its sister airlines after it cancelled flights due to low demand

Isabel dos Santos did not loot Angola alone

Once again, Western auditing and consulting firms shamelessly facilitated corruption on an international scale

Lekwa municipality won’t answer questions about why children died in...

Three children are dead. More than a dozen homes have been gutted by fires in the past six months. And, as...
Advertising

Press Releases

Upskill yourself to land your dream job in 2020

If you received admission to an IIE Higher Certificate qualification, once you have graduated, you can articulate to an IIE Diploma and then IIE Bachelor's degree at IIE Rosebank College.

South Africans unsure of what to expect in 2020

Almost half (49%) of South Africans, 15 years and older, agree or strongly agree that they view 2020 with optimism.

KZN teacher educators jet off to Columbia University

A group of academics were selected as participants of the programme focused on PhD completion, mobility, supervision capacity development and the generation of high-impact research.

New-style star accretion bursts dazzle astronomers

Associate Professor James O Chibueze and Dr SP van den Heever are part of an international team of astronomers studying the G358-MM1 high-mass protostar.

2020 risk outlook: Use GRC to build resilience

GRC activities can be used profitably to develop an integrated risk picture and response, says ContinuitySA.

MTN voted best mobile network

An independent report found MTN to be the best mobile network in SA in the fourth quarter of 2019.

Is your tertiary institution is accredited?

Rosebank College is an educational brand of The Independent Institute of Education, which is registered with the Department of Higher Education and Training.

Is your tertiary institution accredited?

Rosebank College is an educational brand of The Independent Institute of Education, which is registered with the Department of Higher Education and Training.