Zimbabwean-owned firm nabs millions in dodgy transport tender

THE South African Department of Transport is facing serious allegations of procurement irregularities after it emerged that more than R10 million was allegedly paid to a Zimbabwean-owned private company for livestreaming services without going through a competitive tender process.

The claims are contained in a protected disclosure submitted under South Africa’s Protected Disclosures Act, which is designed to safeguard whistle-blowers exposing unlawful or irregular conduct in both the public and private sectors.

According to the disclosure, the department allegedly bypassed open tender requirements by repeatedly awarding Request for Quotation (RFQ) contracts to a digital communications company since 2023.

The whistle-blower alleges that the department deliberately structured contracts to remain below the R500 000 threshold that would trigger competitive bidding procedures.

"I refused to approve the repeated engagement of an external service provider receiving in excess of R10 million through successive RFQs to avoid competitive procurement thresholds," the official stated in the disclosure.

The whistle-blower further claims that departmental staff already possessed the equipment and technical capacity to conduct livestreaming services internally, raising questions about value for money.

"The services were capable of being delivered internally," the disclosure reads.

Concerns were also raised over the effectiveness of the expenditure, with some livestreamed government events reportedly attracting fewer than 100 viewers despite costing between R150 000 and R350 000 per broadcast.

"There is nowhere in the world where I could justify paying such large sums when few people tune in," the whistle-blower said.

The disclosure, dated May 19, was submitted to multiple oversight institutions including Parliament, the Presidency, the National Treasury, the Department of Public Service and Administration, the Auditor-General, and the Public Protector.

It also alleges retaliation against officials who questioned the payments, with claims that refusal to approve transactions was framed as insubordination.

"My supervisor confirmed the refusals under oath, characterising them as insubordination," the disclosure states.

Advocate Adam Masombuka, acting director-general for corporate affairs in the Department of Transport, said the allegations were new to the department and would be subjected to internal investigation.

"The allegations are going to be referred for internal forensic investigation to test their veracity," he said.

The company at the centre of the allegations reportedly claims on its website to have worked with high-profile clients, including President Cyril Ramaphosa and the Office of the Premier of Gauteng.

The matter has also been received by the Standing Committee on Public Accounts, which confirmed it will consider the disclosure in due course.

The allegations add to growing scrutiny of public sector digital procurement practices and the use of RFQ systems, which critics say can be vulnerable to manipulation if not tightly controlled.