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Questions about multi-million rand FS contracts

───   CATHY DLODLO 13:19 Mon, 15 Oct 2018

Questions about multi-million rand FS contracts  | News Article

Multi-million rand contracts between the Free State government and one of the companies listed in a memorandum to the Zondo Commission on State Capture for investigation – are being questioned in the latest Auditor-General Report.


The DA in the Free State listed contracts between the Free State government and Sedtrade as possible state capture cases. Former Premier, now ANC Secretary-General Ace Magashule must answer to, when appearing in front of the Zondo Commission. 

Now the Auditor-General found that contracts between the provincial department of Transport and Sedtrade – amounting to R669 million – were found to be irregularly spent. OFM News’s Cathy Dlodlo reports that these contracts form part of irregular spending amounting to R1.6 billion rand.

The Free State department landed on the national top ten list of worse spenders in the latest report of the Auditor-General for national and provincial departments for 2017/18 financial year. More than R1.3 billion rand expenditure was incurred due to the incorrect application of preference points during tender procedures and contracts with Sedtrade formed part of this. 

Other contracts with this company include one for the transport of medicine worth R76,5 million that has been questioned. The DA indicated that this company already holds contracts for the construction and maintenance of roads, housing developments and the supply of promotional materials.


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