NPA officials suspended, others facing criminal charges

The auditor-general, Terence Nombembe, has slammed the National Prosecuting Authority after uncovering widespread tender-rigging and financial irregularities involving more than R500-million.

The unlawful expenditure was uncovered during a routine audit of the NPA’s finances.

Nombembe has now ordered a “full-scale” investigation into the awarding of tenders in the NPA.

The Sunday Times has established that several NPA officials have been suspended while others are facing criminal charges for tender-rigging and taking bribes from service providers.

A senior NPA official confirmed that the Specialised Commercial Crimes Unit, which forms part of the NPA, is conducting its own investigation. Some officials could face criminal charges within weeks.

Some NPA officials have resigned in the wake of the investigation, which comes at a time when the NPA is under pressure from the ANC for pursuing its president, Jacob Zuma. This week parliament voted to disband the Scorpions.

NPA spokesman Tlali Tlali

In a report to parliament, Nombembe said he had decided to conduct a “full-scale” investigation because of “possible fraudulent activities”.

Nombembe said that because of the extent of the irregularities he could not even express an audit opinion on the NPA’s financial statements.

The NPA, Nombembe said, had disclosed an amount of R423-million in irregular expenditure in the year to March 2008.

Audit evidence obtained by the auditor-general showed that the R423-million figure had actually been “understated by a potential R86-million”.

The Sunday Times has established that the R86-million irregular expenditure included R30-million given to a company to conduct surveillance operations on behalf of the NPA.

The NPA has an annual budget of R1.8-billion.

In the report, Nombembe said his audit had found complete disregard of the law in the NPA in the awarding of tenders.

Listed among the irregular tenders were:

• R54-million worth of tenders to various consultants, including forensic auditors and intelligence companies, to help the Scorpions with their investigations;
  
  
• R66-million paid to the rental company, Rentworks, to rent vehicles;
  
  
• An R11-million tender awarded to a security and intelligence company in KwaZulu-Natal. Three NPA officials have been suspended for taking kickbacks from the company;
  
  
• R62-million paid to a facilities management company for the NPA’s headquarters in Silverton, Pretoria;
  
  
• An additional R35-million paid to the same facilities management company for services not in terms of the contract; and
  
  
• Tenders worth R113-million approved without proper delegation of powers.
  
  

According to the auditor-general’s report, the NPA flouted the law by awarding tenders to suppliers who did not qualify and were not on the approved database of suppliers.

In some instances the NPA deviated from regulations by awarding contracts worth millions of rands to service providers without putting the contracts out to tender.

Some contractors were appointed and paid millions despite not having been approved by the “authorised official”.

The auditor-general also took a swipe at the NPA for failing to account for criminal assets forfeited to the state.

He said the NPA unit responsible had “failed to disclose forfeiture assets and monies from confiscation and forfeiture orders in the financial statements”.

NPA spokesman Tlali Tlali had not responded to written questions at the time of going to press.