1.6 billion of alleged looting in the Eastern Cape

Companies including Sanral, the Independent Development Trust (IDT) and the Coega Development Fund (CDC) have allegedly helped themselves to more than R1.6 billion, City Press has reported.

The money was meant to build roads, schools and houses in the Eastern Cape, one of South Africa’s poorest provinces, according to a series of reports issued by the Treasury.

The shocking reports give details about a top of the range Chevrolet Trailblazer, suits from exclusive boutiques and dinners in fancy restaurants, all allegedly bought with money paid to the Social Housing Regulatory Authority (SHRA) that was meant to be used to build houses.

Allegations include that R341 million was allocated for the building of homes, but not one home was built.

The report claims that three companies were given more than R260 million to provide mobile classrooms in a process that flouted Treasury regulations. One company was paid R10 million for mobile classrooms for four schools but allegedly delivered none.

It is alleged that companies continued to be paid despite their lack of delivery.

A further R38 million was allegedly paid to the company without any documentation of work done, followed by R8.6 million and then a further R17 million despite having delivered nothing.

By the end of all this a total of R380 million was reportedly handed over. It is suspected that R280 million was given without tenders.

The reports also claim that R4.8 million was illegally paid over to private bank accounts and used to buy luxury vehicles, exclusive clothing and meals at fine dining restaurants.

Duplicate payments are reported in some cases. In one, a company called Aqua was paid R4 million for two road projects which had already been allocated to the IDT. The department then paid Sanral R2.3 million for the same road.

Sanral’s southern regional manager, Mbulelo Peterson, by way of explanation, said that “Sanral was contracted to build 870 kms of provincial roads.

“Sanral can therefore only speculate that the identification of duplication of work by Sanral, and other implementation agents was either done in error, or refers to different types of work done on the same road, or different sections of the road.”

Aqua declined to comment, except to say that they believe the report to be “flawed and inaccurate.” The company also threatened City Press, who broke the story, with legal action.

The IDT, meanwhile, did not respond to City Press’s questions, although a spokesperson did say that they are not in possession of the reports and therefore can’t comment.

CDC spokesperson Ayanda Vilikazi told City Press only that the department contracted Coega to build roads for three years in six provincial districts, and the SHRA were not available for comment.