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De Lille goes after company in state funeral tender fraud that cost over R76m

13 January 2020 1:19 PM
Tags:
Patricia de Lille
Tender
ANC veteran
Minister of Public Works and Infrastructure Patricia de Lille
state funeral
inflated invoices
Crocia Events
The funerals of Winnie Madikizela-Mandela and two other ANC struggle stalwarts cost taxpayers R76m in an alleged tender rip-off.

Public Works Minister Patricia de Lille has vowed to act against officials implicated in state funeral tender fraud.

An investigation has uncovered irregular expenditure linked to the funeral of the late stalwart Winnie Madikizela-Mandela and those of two other ANC veterans.

It's alleged that the service provider inflated invoices, costing taxpayers a staggering R76 million for the three funerals.

De Lille has confirmed that the service provider, Crocia Events, submitted inflated invoices and billed for goods that the department had not requisitioned.

The company had reportedly secured a two-year tender in 2017 to provide infrastructure for all state funerals.

De Lille says her department wants the Special Investigating Unit's special tribunal to launch a civil lawsuit against the company.

She's also instructed her officials to lay fraud charges against all those involved in the scandal.

In addition, she says there are internal disciplinary proceedings underway for the department officials implicated in the matter.

We will consult with the SIU and see if we can string the special tribunal to the civil litigation.

Patricia de Lille, Minister of Public Works and Infrastructure

We are also formulating criminal charges to be laid. And then there are internal processes where we found a violation of the Public Finance Management Act and the public service code of ethics.

Patricia de Lille, Minister of Public Works and Infrastructure

De Lille breaks down the irregular spending uncovered in the anti-corruption probe:

An amount totalling R27.58 million was paid to the service provider under circumstances where the invoice unit price of items differed from the unit prices tendered for.

Patricia de Lille, Minister of Public Works and Infrastructure

Another amount of R33.98 million was invoiced and paid to the service provider but it did not appear as contracted items in the tender documentation.

Patricia de Lille, Minister of Public Works and Infrastructure

An amount of R12.4 million was invoiced and paid for goods delivered. However, we could not find any evidence that the department requisitioned any of these goods.

Patricia de Lille, Minister of Public Works and Infrastructure

De Lille says she's spoken to Minister in the Presidency Jackson Mthembu and proposed that the government should review and cap state funerals.

My proposal is that we as Cabinet members must come together and review the current funeral policy.

Patricia de Lille, Minister of Public Works and Infrastructure

Listen to the minister on Today with Kieno Kammies:


13 January 2020 1:19 PM
Tags:
Patricia de Lille
Tender
ANC veteran
Minister of Public Works and Infrastructure Patricia de Lille
state funeral
inflated invoices
Crocia Events

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