Irregular Denel tender more like a ‘gentlemen’s agreement’ - SIU tells MPs

The tender involved hacking into the state arms company's IT system to test its vulnerability.

FILE: Officials say this exercise should have involved the State Security Agency due to its sensitivity. Picture: @DenelSOC/Twitter.

CAPE TOWN - The Special Investigating Unit (SIU) has on Wednesday told members of Parliament (MPs) that an irregular Denel contract was more like a gentlemen’s agreement with no tender processes followed.

The tender involved hacking into the state arms company's IT system to test its vulnerability.

The SIU officials briefed MPs on Wednesday night about questionable contracts awarded by Denel and South African Airways.

It was the SIU’s first time making a presentation to Parliament on the contract with Telspace, which involved hacking into Denel's IT system to test it.

Officials say this exercise should have involved the State Security Agency due to its sensitivity.

SIU lead investigator Zodwa Xesibe said the arms manufacturer didn't follow any formal competitive bidding process prior to concluding the deal.

“In this regard, our findings are the process to appoint Telspace were irregular in the sense that there was no tender advert, no procurement processes followed.”

On SAA, the SIU said the airline awarded a dodgy R54 million contract to paint its aircraft.

SIU head Andy Mothibi said corruption destroyed the company.

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