South African News

Corruption Unchecked: Government fails to blacklist 466 companies recommended by SIU

Daily News Reporter|Updated

Finance Minister Enoch Godondwana had to tell parliament about government's failure to blacklist errant and corrupt companies that were suspected of wrongdoing

Image: GCIS

Recommendations made by the Special Investigating Unit to blacklist nearly 500 companies, including some that were implicated in the Judicial Commission of Inquiry into State Capture, have been ignored by the government.

Some of the directors and companies recommended for restrictions include EOH, SAP, Impulse International, former Eskom official Matshela Koko, businesswoman Shauwn Mpisane’s Zikhulise Group, Abantu Batho Congress leader Philani Mavunda and his company PG Mavundla Engineering, and Digital Vibes, among others.

The government's inaction in barring the red-flagged companies was brought to light when Finance Minister Enoch Godongwana responded to ActionSA's MP Alan Beesley.

Beesley condemned the government for looking the other way and allowing companies that were identified by the SIU to remain free to trade with the state.

“The failure to blacklist errant and corrupt companies is a clear indication that there is no political will to address corruption. With zero consequences, corruption will continue unabated, and all South Africans will continue to pay the price,” he said.

He was reacting to Godongwana's written responses about the 466 companies and individuals that have not yet been blacklisted, although they were included on the National Treasury’s Restricted Supplier and Tender Defaulter Report.

A report from the Presidency to the Standing Committee on Public Accounts earlier this year revealed that 467 individuals and companies were recommended for inclusion in the Restricted Supplier Register.

However, only one entity appeared on the list, prompting Beesley to demand transparency regarding the remaining 466 companies that have slipped through the cracks.

He asked the organs of state that failed to notify the National Treasury of the specified companies and individuals recommended for blacklisting, and the reasons for the failure to blacklist them, despite the SIU recommendations.

In his response, Godongwana stated that a list of 509 referrals was received by the National Treasury from the Presidency on September 20. “Of the referrals, 18 have been blacklisted, and 491 are still under review,” he said.

DAILY NEWS