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The National Treasury has launched an investigation into the awarding of multimillion-rand tenders after its former chief director Molefe Fani was alleged to have been part of a scheme awarding tenders to associates of crime intelligence boss Maj-Gen Feroz Khan. Business Day can also reveal that Fani was the Treasury’s acting chief procurement officer when a tender of more than R50m was awarded to Khan’s associate Ismail Vally’s company in March 2022. This is under scrutiny at the Madlanga commission of inquiry. The tender corruption allegations involving a former top-ranking official of the National Treasury raised concerns as the department facilitates high-value tender bids for government departments. The Treasury confirmed on Wednesday that the department will appoint investigators to probe the damning allegations.“The investigation will be conducted by external forensic investigators appointed by the department. It has been alleged at the Madlanga commission that a former employee improperly influenced the awarding of various transversal contracts during his time at the National Treasury,” the Treasury statement reads.The Madlanga commission recently heard evidence that police crime intelligence operation support boss, Khan, allegedly received “kickbacks” linked to a R280m IT contract in 2021. The Treasury facilitated the procurement process for the contract. Khan is accused of using Fani, then the Treasury’s chief director for transversal contracting, to influence the awarding of Treasury tenders to his associates between 2021 and 2022 The transversal contracting division in the Treasury facilitates public procurement agreements negotiated for government departments and municipalities. Read: Police corruption revelations put SA greylist review at riskIn March 2022, Vally’s company, Kaizen Motor Spares Distributors, was one of two companies awarded a National Treasury contract to supply automotive spare parts to the SA Police Service. National Treasury documents show that Fani was the department’s acting chief procurement officer when the contract was awarded. “At the National Treasury, transversal contracts are centrally managed by the office of the chief procurement officer (OCPO). The OCPO is responsible for the sourcing strategy, bid process, and contract award,” the Treasury said. Business Day
