Gordhan says R2.1bn has been recovered from 'rot' of state capture

Gordhan says R2.1bn has been recovered from 'rot' of state capture

- Pravin Gordhan says government is making progress in recouping money lost to state capture

- He says more than R2 billion has been recovered

- However, the minister says that more needs to be done as more than R4.8 billion is said to have been lost in total to corruption

PAY ATTENTION: Click “See First” under the “Following” tab to see Briefly.co.za News on your News Feed!

Public Enterprises Minister Pravin Gordhan says that R2.1 billion has been recovered from contracts that were awarded improperly.

These were tenders to do business with state-owned enterprises.

Gordhan made the statement in a written response to a question from IFP MP Elphas Buthelezi.

PAY ATTENTION: Do you want to know what's trending on Briefly.co.za? Join our WhatsApp group today.

"The rot within SOEs is deep but can be overcome," Gordhan said in the reply, according to fin24.

He added that state capture has drained an estimated R4.8 billion from the public pursue, Briefly.co.za has gathered. 

Gordhan's statement follows a number of court rulings which have ordered companies to pay back money to SOEs. For example, Mckinsey has paid back roughly R900 million to Eskom. Recently, the Gauteng High Court also ordered that another company, Trillian, must pay back R600 million to the power provider.

READ ALSO: Pensions on the line as ANC seeks to avoid IMF bailout for SOEs

Gordhan added that legal action was being pursued to recoup funds from individuals as well as companies. According to IOL, Gordhan said that several civil claims have been filed against executives at a number of SOEs in cases where their conduct is alleged to have cost the SOEs money. 

The minister says that the Special Investigations Unit is also going to court to have Eskom's court agreement with Tegeta Brakfontein set aside. This deal is estimated to be worth R2.7 billion.

Enjoyed reading our story? Download BRIEFLY's news app on Google Play now and stay up-to-date with major South African news!

Source: Briefly.co.za

Mailfire view pixel