Taxpayers paid for Bosasa bribes

Bosasa had a wide network of government contracts and splurged more than R75 million in bribes, which the taxpayers paid for as the bribes were factored into the cost of the contracts.

The irregular tenders and contracts were issued to government departments such as the department of correctional services (DCS), department of justice and constitutional development and the department of home affairs. According to the Zondo commission report, the aggregated value of contracts awarded to Bosasa companies by several public entities and departments between 2000 and 2016 were esti mated to be more than R2 billion.

“During the period of 2004 to 2007, Bosasa acquired contracts from the DCS which included a catering service at seven management areas, the Sondolo IT television network system contract for every cell in every correctional centre and the Phezulu Fencing.

“Most of these contracts had specific provisions for their extension and maintenance attached to them,” the report said.

The DSC catering contract had a value of R580 million and the estimated bribes paid in cash were approximately R15 million.

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The report revealed former Bosasa chief executive Gavin Watson wanted to eradicate existing catering contracts at mines and get involved in catering facilities management.

Regarding initial efforts to secure the catering contract, testimony from former Bosasa employee Frans Vorster – who according to the report said Watson in 2003 introduced him to Patrick Gillingham, who was at the time the commissioner at the DCS for Mpumalanga, Limpopo and Gauteng and the project leader for the tender.

Vorster said Gillingham wanted to get involved in the DCS catering sector and they had met regularly. The frequency of their meetings depended solely on how much information was needed. However, he did not take cash to Gillingham on every occasion but when he did, it was usually about R20 000.

When asked if those meetings with Gillingham “bore any fruit”, Vorster replied: “Ja, well, that led to us getting the catering contract that was awarded to us in 2004.”

The awarding of contracts revealed how all bids fell under former chief operating officer turned whistle-blower Angelo Agrizzi’s supervision. For a threeyear period, Bosasa was awarded the contract with an annual value around R239 million.

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“Mr Agrizzi explained that the costings were manipulated by doubling the price of a special meal and running those meals at a 70/30 ratio instead of the 90/10 ratio,” said Zondo.

“This resulted in a monthly costing that was on average 35% higher, with the DCS paying closer to R310 million instead of the