Treasury last month instructed the City of Johannesburg to cancel a controversial R1.2bn contract given to Afrirent and investigate how it happened in the first place, but the company has protested its innocence.
Fleet management company Afrirent said in a statement this week that according to its own internal review, National Treasury was allegedly given inaccurate and incomplete information about its contract with the Johannesburg municipality.
Mogale City’s contract was ultimately worth R111 million, while the CoJ’s was worth as much as R1.4 billion or more. Afrirent was linked to donations to the EFF last year, through among other things a tractor that the EFF went on to donate to communities in Seshego and Blood River in Limpopo.that alleged Afrirent had made payments into an account used for the benefit of the EFF and its leader, Julius Malema.
Malema and the EFF denied having benefited from kickbacks relating to the Afrirent tender, and the company likewise denied knowing of any link between Mahuna and the party or Malema. “Before the appointment of Afrirent using Regulation 32, CoJ conducted an open tender process, which was abandoned later. The number of vehicles specified in the tender document and all subsequent discussions between Afrirent and the CoJ was 2,734. At no point was the requirement of only 168 vehicles communicated to Afrirent and other bidders.
“Our understanding, based on legal advice obtained, is that Regulation 32 does not require the contract an entity is piggybacking on to be exactly the same, nor does it require the monetary values involved to be the same.
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