Masutha suggests the department would have cut ties with the company much earlier had the SIU provided a more detailed and thorough report
Minister of justice Michael Masutha. Picture: NTSWE MOKOENA
The two banks cited reputational risk as their reason for cutting ties with the embattled firm after it was implicated in corrupt activities at the ongoing state capture inquiry. In 2006, the president issued a proclamation to probe allegations of corrupt activities in the awarding of contracts to Bosasa, namely for nutritional services, access control, fencing and televisions, said Masutha. Following the probe, the SIU drafted a report in 2009 on alleged tender rigging involving Bosasa and senior correctional services officials, including the then national commissioner Linda Mti and CFO Patrick Gillingham.
“With hindsight the SIU might see that there was a gap in their recommendations. Without seeking to exonerate the department, the SIU report could have been more helpful," said Masutha.
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