Dipuo Peters in Madonsela's sights

Dipuo Peters demanded that the RTMC pay R507m to it but RTMC's head, Collins Letsoalo refused to do so. Image: GCIS

The investigation stems from a letter in which Peters demanded that then acting head of Road Traffic Management Corporation Collins Letsoalo hand over R507m collected by the agency since September last year.

Letsoalo refused, stating in his response that doing so would be in breach of the Public Finance Management Act.

He also detailed how this would result in:

• Non-compliance with the Generally Recognised Accounting Practice;
• An adverse audit opinion by the auditor-general;

• Such irregular expenditure would be a contravention of the act and could lead to financial misconduct on his part.

Correspondence between the two shows Peters wanted the money to pay Tasima, the consortium at the centre of the multibillion-rand e-Natis contract.

Tasima faces Hawks probe

Tasima is being investigated by the Hawks for allegedly billing the department R12m for work not done.

Letsoalo said the e-Natis contract was for a fixed price of R354.7m that also covered the costs of software maintenance for five years. But the department ended up paying in excess of R2bn.

"The apparent predicament the department now finds itself [in] is not the result of the non-transfer of the transaction fees but is due to the unlawful and/or irregular conduct of the employees of the department," Letsoalo said.

He was removed from his position a day after refusing to agree to the minister's demands.

Tasima is involved in a court battle with the department for R118m in unpaid fees.

Madonsela's office confirmed it was "looking into the matter". Spokesman Oupa Segalwe said: "The investigation is still at very early stage." He refused to say who alerted the public protector to this matter.

"The complainant blew the whistle on condition their identity was not revealed," he said.

Source: The Times via I-Net Bridge