The appointment of Open Water Advanced Risk Solutions was made in the last three weeks of the 2023/24 financial year without inviting competitive bids.
The firm, Open Water Advanced Risk Solutions, was appointed in March to investigate the department’s school uniform project, at a cost of R8.5-million, without following the standard supply chain management protocol.
We asked Gadebe if there was any association between MEC Hlophe’s connection to Magashule and the appointment of Open Water. Gadebe, the MEC’s spokesperson, confirmed to GroundUp that the appointment was “not in line with Treasury regulations”. The department’s response was that rogue officials had instructed the co-operatives to make the uniforms while another contractor had already been appointed. GroundUp understands that Open Water’s mandate included identifying who these officials were.“R8.5-million is high for only one project to be investigated,” a source in the department told GroundUp.
The budget for the Open Water investigation includes a budget category for “Irregular Expenditure” in addition to the school uniform project, but neither the department’s approval memo nor Open Water’s project proposal explains what “irregular expenditure” is being investigated.
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