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Giant security company condemned over R1.2 billion fraud

Tapsosa President Jones Maphalaphathwa

Tapsosa President Jones Maphalaphathwa

By Busisani Ncube

The Association representing private security companies – Tapsosa – has condemned the alleged acts of fraud and corruption relating to the R1.2 billion perpetrated by a giant security company.

The association’s president Jones Mphalaphathwa said the company in question should be disqualified from getting future contracts from government.

“We commend the minister of justice Ronald Lamola for the suspension of two senior officials from the department over the alleged tender fraud, which reflects behavioural signs of “Capture of the sector” by the company in question,” he said.

Justice minister Ronald Lamola

Tapsosa has also called on the minister to investigate the life-long contract that the company has with the department.

“We call on the Minister to also look into an ever-green contract held by the same company with the department of Justice, which has been running for decades,” he said.

The security company implicated in the R1.2 billion tender fraud from the department of Justice – Fidelity – said they had nothing to hide.

“We welcome the investigation into the awarding of that tender. We have been providing services to the DOJ for many years. We were correct in the tender being handed to us,” said Fidelity CEO Wahl Bartman.

Fidelity was awarded the controversial contract in 2016 to guard all the 350 magistrate’s court facilities, says it followed due process.

Two senior officials from the department of justice and correctional services have reportedly been placed on precautionary suspension following a forensic investigation into the procurement systems of the department.

This comes after allegations that tender processes were flawed. The company is believed to have been among over 300 bidders who were initially disqualified from the tender for failing to meet the mandatory requirements.

Tapsosa said small companies were scrambling for contracts while big players were flouting tender regulations

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