Is the R 70 billion contract with the Chinese above board?

The Democratic Alliance wants Finance Minister, Malusi Gigaba, to assure the South African public that two mega-contracts between government and Chinese parastatals will not go ahead without the procurement laws being adhered to.

“According to reports, the Water and Sanitation Department as well as the Passanger Rail Agency of South Africa (Prasa) are in the process of handing contracts worth R 70 billion to Chinese parastatals without a public tender or permission from Treasury to bypass tender laws,” said Alf Lees, the DA Shadow Deputy Minister of Finance.

“Minister Gigaba must urgently account for Treasury’s alleged planned deviation in the competitive tendering process and make an assurance that due procedure will be followed before handing over these R 70 billion contacts to Chinese companies without the proper tendering process,” added Lees.

The last thing that South Africa can afford right now is another corrupt multi-billion rand intergovernmental tender deal.

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Earlier this year the Western Cape High Court ruled that the process leading to government signing agreements with Russia for a nuclear contract was “flawed, unconstitutional and not in line with sound decision making”.

The National Treasury should account to parliament on its involvement in these negotiations and provide a full disclosure on whether the legal tender process is being followed.

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