A lawyer who suggested Transnet on authorized issues has detailed how the parastatal paid R95.5m over 25 months for safety companies to an organization owned by Normal Siphiwe Nyanda but the agency didn’t have no staff and likewise not registered with regulatory authority.
Christopher Todd, an lawyer and a director at Bowman Gilfillan Attorneys, on Wednesday detailed how former Transnet CEO Siyabonga Gama permitted a safety contract with Normal Nyanda Safety (GNS) with out studying its doc. Nyanda was one of many two administrators of GNS.
Todd, who represented Transnet on authorized issues between 2007 and 2010, informed the Zondo fee of inquiry into state seize that no correct public procurement course of was adopted in awarding the multi-million tender to GNS.
The tender, which Gama permitted in December 2007, was meant to final for 5 months after which be subjected to a evaluate.
“ …The preliminary pricing of the contract was estimated at R18m and that exceeded Mr Gama’s authority to approve the contract as his authority was restricted to a contract not exceeding R10m. However Mr Gama mentioned ‘I solely permitted 5 months’… However because it occurred, this contract doubled in worth inside that 5 months,” Todd informed the fee.
Zondo was alarmed on the alleged conduct of Mr Gama.
“It’s most regarding CEO signed a doc committing an organization to such tens of millions of rands with out studying the doc,” Zondo mentioned.
Todd informed the fee that in a disciplinary listening to, Gama was questioned about his relationship with Nyanda, a former chief of the SA Nationwide Protection Pressure and former communications minister.
Todd mentioned Transnet accused Gama of getting a private relationship with Nyanda however he denied it and mentioned he knew Nyanda like every other member of the general public.