A company partly owned by Communications Minister Siphiwe Nyanda was unlawfully awarded a R67.8-million tender by the Gauteng roads and transport department, the DA alleged yesterday.

The DA's Gauteng corruption spokesman, Jack Bloom, said GNS Risk Advisory Services, in which Nyanda has a 50% share, had benefitted from a tender that was not publicly advertised.

"This is outrageous. Treasury regulation 16A6.4 allows for procurement of required goods or ser-vices by means other than competitive bids only if [competitive biding] would be impractical, but how could there have been anything impractical in this case?" Bloom asked.

The services provided by GNS, he said, could have been provided by other companies.

"This contract appears to have grown in value, and was not reviewed to see if another company could do the job more cost-effectively."

He said that, in awarding the tender, the department did not follow the required tender processes.

"It seems highly irregular that Minister Nyanda continues to benefit handsomely from GNS's contract, with a Gauteng government department, that should have been reviewed long ago," said Bloom.

Transnet on Wednesday dismissed two senior managers for manipulating a tender involving GNS.

A disciplinary hearing found the two guilty of dishonesty, and of misconduct, in the awarding of a tender for security services for Transnet Freight Rail.

The two managers were suspended in November.

Transnet spokesman John Dlu-dlu confirmed that the dismissals were related to a contract awarded to GNS Security Company.

And last month the Congress of the People said it intended asking the Public Protector to investigate Nyanda's business interests.

The party alleged that his business interests were in conflict with section 96 of the Constitution and section 2 of the Executive Members' Ethics Act.

Cope contends that, in terms of the legislation, Nyanda may not undertake any other paid work, expose himself to a conflict of private and official interests, use his position to enrich himself, or act in a way that might compromise the credibility of the government.

Yesterday, the DA and Cope welcomed Transnet's decision to axe the two senior security managers.

DA MP Pieter van Dalen said: "Transnet must be commended for taking action against the managers involved in corrupt activities, but the dismissals cannot be allowed to divert attention from the involvement of those at the top."

Cope said the dismissals stem from a complaint it submitted for investigation to Public Protector Thuli Madonsela.

Cope MP Juli Kilian said "The next step would be for Nyanda to refund the R55-million proceeds from what was essentially a highly irregular, if not blatantly corrupt, transaction".

Kilian said this case was an acid test of the independence of the newly appointed Public Protector.