AMABHUNGANE: Tender Comrades Analysis: When it looks like a duck, swims like a duck and quacks like a duck By amaBhungane
There can be little doubt tenderpreneur Hendrick Kganyago’s payments to three companies linked to EFF leaders was related to his fuel supply to the City of Tshwane. Contracts in other areas where his companies are active may have featured too.The city advertised the tender for a new multi-year contract – which he held at the time – in mid-2018. His payments, R15-million in total up to the end of August 2019, started shortly thereafter. Two early transfers were even referenced “fuel payment”.
There then followed an apparently clumsy attempt to disguise things by tacking small change onto those amounts, such as an oft-repeated transfer of R501,200. This started on 7 December, the first tranche coming afterCity of Johannesburg contractor Afrirent’s payments to Julius Malema’s Mahuna Investments on 29 November 2018.
Alternatively, Kganyago might claim he was making legitimate donations to the EFF. If so, he would have to explain why he paid it to obscure companies linked to EFF leaders rather than directly into party accounts. The intent to disguise seems clear.There is a growing body of evidence that EFF leaders are extracting “rent” from procurement streams in areas where they have, or may be perceived by contractors to have, sufficient power to influence procurement outcomes.
Beyond that, the ongoing nature and regularity of Kganyago’s payments suggest the same “mutually beneficial symbiosis” that Judge Hillary Squires found had existed between Schabir Shaik and Jacob Zuma.
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