A state entity whose contract with the department of correctional services was reviewed and set aside by the Special Tribunal on Monday faced a possible shutdown four years ago.
The Independent Development Trust (IDT), which reports to public works and infrastructure minister Dean Macpherson, and which was appointed as an implementing agent by the department of correctional services, saw the Special Tribunal review and set aside contracts worth more than R490m about 12 years ago.
The contracts issued by the IDT, a state agency responsible for delivering social infrastructure on behalf of the department, related to prison fences and other security work, were given to other service providers whose contracts were also set aside by the Special Tribunal.
In 2020, TimesLIVE reported how then-minister of public works Patricia de Lille was criticised by MPs across different political parties for what they termed her unilateral decision and plans to shut down the IDT.
The two contracts set aside by the tribunal were entered into in 2011 and 2012 by the IDT with other service providers after the trust was appointed as an implementing agent by the department of correctional services. They are being investigated by the Special Investigating Unit (SIU).
One argument advanced by the SIU included the transfer of funds to the IDT by the department before any work was undertaken as it could constitute prepayment, which is proscribed under National Treasury regulations.
On Monday, Special Tribunal judge Lebogang Modiba reviewed and set aside the contracts concluded between the IDT and three other service providers.
Modiba also reviewed and set aside the IDT's decision to appoint Manyeleti Consulting SA as a transaction adviser for one of the tenders and other related contracts with other service providers.
She ruled the service providers should account for all monies paid to them in respect of the two affected tenders.
She stated in her ruling: “The third to seventh respondents shall render the full accounts of all the payments they received under [two tenders] and reasonable expenses incurred under these tenders, supported by necessary vouchers [accounts].”
The IDT was, at the time when De Lille wanted to shut it down, facing numerous litigation claims for poor performance, project cost escalation, time delays and quality.
Correctional services spokesperson Singabakho Nxumalo said he could not comment on the court ruling as he first needed to speak to the department's legal services.
De Lille wrote to the trust in March of that year saying the failure of the board and executive management over time to address ongoing concerns regarding the agency's financial viability and governance amounted to a breach of fiduciary duties.
She revealed in that letter that since her appointment in mid-2019, IDT management had requested R29.9m from her department to meet its obligations such as salary payments.
The parliament portfolio committee on public works and infrastructure resolved to invite both the IDT and De Lille to present the options she had considered before arriving at her decision to close the agency.
Samantha Graham-Maré, now deputy electricity and energy minister, had in several letters during her tenure as DA's shadow minister of public works, raised allegations of maladministration within the IDT.
On Monday, Graham-Maré said she also submitted information to the Hawks “that never got a response”.
“There were huge issues on a lease agreement that was flawed ... the minister (then-minister Sihle Zikalala [now deputy]) never responded to me, but I know he did institute a forensic investigation,” Graham-Maré said.
She said the IDT was meant to be self-sufficient, however it, had been “bleeding the department dry”.
“They [IDT] has never functioned without grant monies from the department of public works,” Graham-Maré said.
