Hawks probe R23 million contract

An IT contract worth R23 million, awarded by the Gauteng finance department, is under investigation by the Hawks, according to a report.

The Sunday Independent reports that the contract was given to Lefatshe Technologies without going through a tender process, apparently so security would not be compromised.

Lefatshe had been awarded at least one other government tender, worth R65 million. This was cancelled in 2010 due to fraud and corruption allegations.

"I can confirm that we are indeed investigating cases of fraud against Lefatshe. One of the matters is going to be handed over to the National Prosecuting Authority at the end of the month for further deliberation," Hawks Captain Paul Ramaloko told the weekly.

The Lefatshe contract accounts for part of the R55 million the department spent irregularly in the last financial year, according to the Sunday Independent.

National police commissioner Riah Phiyega was a director in Lefatshe when it was awarded a R65 million contract to develop an accident reporting system for the Road Traffic Management Corporation, the Independent Online reported earlier this year.