By Johnathan Paoli
The National Treasury has launched a forensic investigation into the awarding of several transversal contracts following allegations of improper conduct involving a former Treasury official that emerged during proceedings before the Madlanga Commission of Inquiry.
In a statement issued on Wednesday, the Treasury said the investigation was prompted by evidence presented to the commission and would be conducted by independent forensic investigators appointed by the department.
“It has been alleged at the Madlanga Commission that a former employee improperly influenced the awarding of various transversal contracts during his time at the National Treasury. In light of the seriousness of the allegations presented, the National Treasury has initiated an investigation into the awarding of transversal contracts concluded during this period,” the statement said.
The announcement follows testimony before the commission linking senior police officials, businesspeople and former National Treasury chief procurement officer, now suspended SAPS divisional commissioner for supply chain management Lieutenant-General Molefe Fani, to contracts worth hundreds of millions of rand.
According to an affidavit filed by commission investigator Tshepo Nyatlo, WhatsApp messages extracted from the devices of suspended Crime Intelligence head Major-General Feroz Khan allegedly reveal attempts to influence government procurement processes and secure financial benefits from state contracts.
Among the contracts under scrutiny is a National Treasury-facilitated automotive spare parts tender worth more than R50 million, awarded in 2022 to All Parts and Kaizen Motor Spares Distributors, a company linked to businessman and Khan associate Ismail Vally.
Evidence before the commission indicated that Khan and Vally discussed the tender in 2021, with messages allegedly suggesting plans to secure the contract through Treasury connections.
The commission has also heard allegations relating to a separate R280 million information technology contract awarded by the Treasury to Cyberia.
Nyatlo alleged that Khan, tobacco executive Mohamed Sayed and others stood to benefit financially from the contract through another company, Smada, describing it as a disguised kickback arrangement linked to the procurement process.
Fani was suspended earlier this year following findings by the Special Investigating Unit relating to a separate contract declared irregular because of procurement non-compliance, conflicts of interest and wasteful expenditure.
The Treasury said its investigation would seek to establish the facts surrounding the allegations and identify any weaknesses in existing procurement systems.
“Findings of this investigation will be made public in the interest of public trust and good governance,” the department said.
The Treasury also confirmed that it is cooperating with the Madlanga Commission and has begun providing investigators with the requested documentation, reaffirming its commitment to safeguarding the integrity of public procurement.
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