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Holomisa accuses Gauteng roads and transport dept of financial misconduct

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By Johnathan Paoli

United Democratic Movement leader Bantu Holomisa has written to the Hawks formally requesting an investigation into alleged corruption at the Gauteng roads and transport department.

In a letter to Hawks head Lt. General Godfrey Lebeya, Holomisa who is the deputy minister of defence, has asked the unit to determine whether tenders for MEC Kedibone Diale-Tlabela’s corporate social investment programmes were above board.

“Your assistance in clarifying these financial movements and determining whether these practices are in breach of public financial management standards would be invaluable,” he said.

According to Holomisa, based on an apparent internal department letter, grounds existed to suspect financial misconduct that allegedly contravened provisions of the Public Finance Management Act (PFMA).

He alleged that certain funds were allocated and disbursed under the guise of the investment programmes, and that these allocations labelled as “prime cost amounts”, seemed to allow for unregulated expenditure by contractors and enabled mark-ups without strict cost controls.

Holomisa said these amounts did not align with traditional tendering practices and raised concerns about transparency and the intended use of the funds.

He further alleged that the MEC instructed payments for the programmes despite limited oversight.

A recent communication within the department suggested an R8 million allocation for a social facilitation programme within the K60 road construction project; and that contractors reportedly chose service providers following recommendations from consultants, with minimal competitive bidding or transparent selection processes.

The deputy minister requested that investigations be conducted into the legality of allocating funds in the name of social investment without formal agreements or transparent tendering.

He said an analysis was needed on the flow of funds, including tracing the companies or individuals who benefited.

Holomisa said he was willing to provide further details and supporting documents, and expressed his confidence in the ability of the Hawks to come to the bottom of the matter.

“We trust in the Hawks’ commitment to upholding transparency and accountability in the public service, and we look forward to your findings,” the letter reads.

Inside Politics reached out to the MEC’s office for an official response.

Spokesperson Lesiba Mpya denied the allegations as false, saying Diale-Tlabela would issue a formal statement on Monday.

INSIDE POLITICS

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