Tag Archive | taxi recapitalization

AG suspects corruption in taxi recapitalisation

On corruption MPs ask for Hawks…

A number of  MPs, frustrated by hearing of corruption and by not knowing whom to believe, demanded that the SAP Priority Crimes unit and the Hawks be called in to investigate financial failures and mismanagement of the taxi recapitalisation programme.     The department of Transport (DoT) had been called before the portfolio committee to explain the qualifications contained in the AG’s annual report on the department’s financial performance.

The renewal without authority of the  e-NaTis vehicle registration contract, a further fact reported by the auditor general (AG) in the 2011/2 DOT departmental financials, also gave MPs considerable concern.

Indicative of the seriousness of the issue was the fact that the minister of transport, Ben Martins, himself previously a parliamentary chairperson, appeared before the portfolio committee of transport to give assurances that investigations would take place.

DoT denies claims

During the briefing, the deputy director general of transport, DoT, Mathabatha Mokonyama, maintained that the claims made by the auditor general were incorrect insofar as the scrapping payouts made by his department were concerned.

He maintained that despite the AG’s qualification that no supporting documents, or any form of accounting documents for any of the thousands of old taxis bought from their owners before scrapping could be accounted for, the claim by the AG was quite untrue despite the lack of documentation supplied.

He acknowledged that indeed R2.9bn, the amount under query, of the total of R7.7bn provided since the programme had started, had all been properly recorded but documents simply not provided with the reconciliations to the AG. The AG maintained that the only document that existed was a simple spread sheet of expenditure.

No backup documents ever came

The AG’s office, represented by deputy auditor general Kimi Makwetu, also stated that whatever the case no documents to support the disbursements had subsequently been supplied which were clearly asked for. As far her office was concerned, this meant unrecorded transactions had occurred and the department’s performance within DOT on this issue marked as “no information available”.

Minister of Transport Ben Martins promised his personal intervention in the matter and that investigations had already started within DOT.   During the course of the meeting it was noted that the consultants called were called in some years ago to manage the scrapping programme. The name was given as the Siyazi Consortium whom, it was stated, had been paid R640m to manage the scrapping programme.

Early ideals

In late 2006, the then minister of transport Jeff Radebe, now minister of justice, issued a statement saying, “I am therefore delighted to announce that for the first time in the history of the taxi recapitalisation programme, we will witness the real-time scrapping of old taxi vehicles.”

He said at the time, “ Our scrapping administration agency, Siyazi Consortium, is also far in advance in setting-up scrapping facilities in various provinces and has the target of ensuring that we recapitalise 85% of old taxi vehicles by 2010.”

e-NaTis also touched by fraud

Parliamentarians were also told by the AG at the meeting of the irregular extension of the e-NaTis vehicle registration programme, running currently at R1bn over its original contract value of R594m, without any formal tender process or regularity in terms of the public finance management act. Opposition MPs called for a police investigation.

The chief financial director, ministry of transport, confirmed during the meeting that neither the ministers of transport or finance were told of the extension by DOT officials but that national treasury had been informed.

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