Mike Moriarty MPL

DA Gauteng Spokesperson on Finance

The Accountant-General in the National Treasury has agreed to the DA’s request to investigate the R145 million cancellation cost of the Gauteng call centre run by Sibize International. We welcome the investigation into the contract which was mired in controversy from start to finish.

This call centre was notoriously badly run, with many complaints from the public that it was almost impossible to use it to book a driving license test. Suspicions were aroused because Sibize is run by politically connected individuals.

The DA requested the investigation into the excessive costs to terminate the contract. The contract to run Gauteng’s call centre was awarded to Sibize International without going to tender.

The provincial government did not develop a business case for the contract and it is questionable whether any value was received for the R780 million paid to Sibize over the three years during which they ran the call centre. Provincial staff is currently doing the work for much less.

In the end, the province had to pay R145m to make Sibize go away. No value was received for this money whatsoever and we regard this as fruitless and wasteful expenditure.

The residents of Gauteng have every right to expect that the wastage of R145m should have been avoided. A DA-led administration would have ensured proper financial controls and procurement procedures were instituted to avoid the diversion of millions of rands from essential service delivery projects.

We hope that the Accountant-General will conduct a forensic investigation into this matter and look forward to the outcome of the investigation with great anticipation.

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