Question NW853 to the Minister of Public Enterprises
24 April 2024 - NW853
Essack, Mr F to ask the Minister of Public Enterprises
What total amount has (a)(i) Denel, (ii) the SA Forestry Company SOC Limited and (iii) Alexkor lost due to (aa) corruption, (bb) fraud and (cc) bribery in the past five years and (b) been recovered in each case? NW1060E
Reply:
According to the information received from Denel, SAFCOL and Alexkor:
(i) Denel has suffered a direct loss of R4 351 614.40 in the past five years.
A sum of R596 387.55 is being recovered through a settlement agreement reached with the SIU and R1.6m is in the process of being recovered in accordance with the court order.
(ii) SAFCOL has reviewed its Financial Misconduct reports for the financial years 2018/19 – 2022/23 and no quantum’s that have been classified as attributable to (aa) corruption, (bb) fraud or (cc) bribery have been noted.
(iii) Alexkor: There are pending investigations by SIU to establish whether there were any amounts lost due to corruption, fraud and bribery in the past five years. At this stage Alexkor is waiting for the finalization of the SIU investigation.
If any loss is established, then Alexkor will proceed to endeavor to recover any amounts lost.
DPE Response
The department introduced changes that were aimed at addressing the governance weaknesses identified during the State Capture period in the SOC environment. This was done through working with various statutory bodies to ensure consequence management for all those implicated by the State Capture Commission (herein after Commission). The department has introduced a hotline aimed at providing a platform for reporting of malfeasance in the department and the SOC. As part of governance reforms, the SOC tender committees were scrapped and the MOIs were updated in this regard. Other initiatives undertaken to implement the recommendations from the Commission include the institution of criminal, civil and director delinquency proceedings. Furthermore, the department has undertaken referrals to professional bodies; and red flagging of natural persons who perpetrated state capture as they seek to pursue employment and prohibition of juristic persons from accessing procurement opportunities availed by the state. Lastly, the department is working with the Special Investigating Unit (“SIU”) to implement proclamations relating to maladministration concerning the affairs of SOCs.
Remarks: Approved/Not Approved/Comments
Jacky Molisane PJ Gordhan, MP
Acting Director-General Minister
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