NEWS

Spy Boss' Company In Dodgy Prasa Contract

A probe into Prasa has uncovered a contract irregularly awarded to a spy boss.

20/06/2017 07:18 SAST | Updated 20/06/2017 07:18 SAST
Alexander Joe/AFP/Getty Images

A security company part-owned by State Security Agency director-general Arthur Fraser allegedly flouted tender processes and submitted a false tax certificate when it was awarded a R90 million contract from state rail agency, Prasa, Daily Maverick reported on Tuesday.

This is reportedly according to a Treasury investigation, which reportedly also found that the company, Resurgent Risk Managers, might be guilty of bribery.

According to Daily Maverick, the probe into Resurgent forms part of a wider investigation into corruption at Prasa, ordered by the Public Protector.

Investigators Nexus Forensic Services reportedly found that Resurgent's paper work was so badly done that "it cannot be excluded that the disregard for proper process... was as a result of, or in lieu of, gratification as defined in [the Prevention and Combating of Corrupt Activities Act]".

The Daily Maverick reported Resurgent was contracted to do a security risk threat on hot spots including Prasa's corridors, sub-stations and equipment rooms, as well as to review Prasa's security strategy, and train security personnel.

This was during the tenure of former CEO Lucky Montana in 2015. Fraser reportedly resigned from Resurgent just after he was appointed as director-general of state security in September 2016. Fraser referred questions to Resurgent, which reportedly declined to comment.

Resurgent reportedly denied using a fake tax certificate when questioned by Nexus, although Sars said the certificate was not issued by its office.

The contract was also reportedly awarded on the basis of confinement -- where tender procedures may be bypassed in exceptional circumstances, such as urgency or secrecy. But none of these reasons existed to justify awarding the tender in this way, Nexus concluded.

Nexus recommended that the contract be referred to the police for further investigation.