Gigaba to explain the missing R794 million owed to an IT company

Gigaba to explain the missing R794 million owed to an IT company

- Minister of Home Affairs Malusi Gigaba has been ordered by court to answer for an unpaid debt of almost R800 million

- The owed millions are indebted to an IT company hired by the Department of Home Affairs of Tshwane

- The liquidation company that is demanding the owed amount says taxpayers will have to fork out the millions

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South Africa's Minister of Home Affairs Malusi Gigaba has been subpoenaed to face up to why the Department of Home Affairs allowed an unpaid invoice of R67 million to swell up to almost R800 million.

The millions are owed to an IT (information technology) company that is undergoing liquidation.

IOL News reports that the amount owed to the company - Double Ring Trading - skyrocketed in 2009 when the dispute with the Department of Home Affairs began.

The gigantic amount owed now stands at approximately R794 million. The company was hired to supply and install an information and communication technology hub at the Department of Home Affairs in Tshwane, among other tasks.

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One of the liquidators sent by SAF Trust stated that they want the outstanding amount and taxpayers must cough up the money.

Had this matter been dealt with in 2009 - honestly, transparently and properly - the South African taxpayer would have been billed for only R67 million.
Taxpayers are now in for 10 times that amount because of rubbish defences.

Apparently, the department claims that the company did not do as was agreed upon, while Moeketsi Nonyana, the former Home Affairs manager who oversaw the ICT project said under oath that the company did keep to its obligations.

READ ALSO: Government blowing millions on maintaining at least 3 long-term vacant ministerial homes

Gigaba has been subpoenaed by the South Gauteng High Court to provide documents about the non-payment of the debt.

Briefly.co.za gathered that by not paying the debt, 150 jobs were lost when the company was forced to close its doors.

If Minister Gigaba fails to avail himself, he could be sent to prison.

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Source: Briefly.co.za

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