South Africa: Siphiwe Nyanda company in contract chaos


A company owned partly by communications minister Siphiwe Nyanda was given a R20m contract to investigate service delivery protests in Mpumalanga,City Press reported on Sunday.


The contract was allegedly awarded to Abalozi Security Risk Advisory Services without following tender rules. A Nyanda family trust is alleged to have a 45% shareholding in Abalozi.


The report implicates rivals of Mpumalanga premier David Mabuza as instigators and funders of the protests, that began in the province in February 2009.


Mpumalanga co-operative governance department head David Mahlobo was quoted as saying the contract was awarded on an “emergency procurement” basis and met treasury rules allowing for departure from normal tender rules.


According to unnamed government officials, the reasons for ignoring tender rules were only advanced when the co-operative governance department’s acting chief financial officer Goldrich Gardee, refused to make payments to Abalozi. Payment was only made after Gardee asked the department’s MEC Norman Mokoena to put the instruction in writing.


Last week, public protector Thuli Madonsela found there was no conclusive evidence to substantiate the allegation that Nyanda was personally responsible for securing a R55m contract for Abalozi from Transnet Freight Rail, or that he used his position or relationship with the CEO of Transnet Freight Rail to do so.