Government Agency spends nearly R1 million to lease a car worth R600 000

Government Agency spends nearly R1 million to lease a car worth R600 000

- The State Information Technology Agency (SITA) has spent about R1 million over 15 months to lease a luxury vehicle for its boss

- The vehicle in question only costs about R600 000 to purchase outright

- SITA boss Setumo Mohapi has now been accused of wasteful and fruitless expenditure by his colleagues

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The State Information Technology Agency (SITA) has spent just under R1 million in 15 months to lease a Mercedes Benz C180 for its Chief Executive Setumo Mohapi.

The extraordinary part of this claim is that a brand new C180 costs just under R600 000 to purchase outright. Insiders at the agency are now accusing their boss of wasteful and fruitless expenditure.

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Internal correspondence between SITA’s transport chief, Solly Baloyi and chief financial officer, Rudzani Rasikhinya shows the former requested the latter to approve the lease of the vehicle for Mohapi.

Briefly.co.za discovered that Baloyi asked Rasikhinya to extend a previous lease agreement which started on 1 July 2016 and was due to be completed on 30 September 2017. The agreement was extended until December, when the agency signed a new 36-month leasing agreement with g-Fleet.

Internal documents reveal by the time all was said and done SITA had spent R954 302.50 on leasing the vehicle. This amounts to R63 620.17 per month.

Baloyi said in his letter that Rasikhinya had approved the temporary hiring of a vehicle for Mohapi while the relevant departments conducted research and waited on the board to give a decision about sourcing vehicles for Mohapi and the chairperson.

SITA spokesperson Lucky Mochalibane disputed the figure of R63 620.17 per month and said the agency never paid that amount to Avis from which the car was being leased.

“From experience, rental of an executive car in South Africa normally costs about R650 per day, and over 30 days that can amount to R19500 excluding the fuel costs. From the quotations received from Duma Travel, it is clear that SITA did not pay the kind of amount (claimed),” said Mochalibane.

Rasikhinya, however, contradicted this statement by confirming SITA had paid the claimed amount to Avis. She admitted the lease was costly, but said it was meant as a temporary solution which unfortunately went on for much too long.

Insiders have accused Mohapi of using the vehicle for his own personal use.

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Source: Briefly.co.za

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