Gloves off as the EFF demands that President Cyril Ramaphosa make public the report on the R1-billion contract for the Integrated Financial Management System (IFMS) that details corruption, fraud, and maladministration.
The party made the call on Wednesday in response to the auditor-general’s notification to the standing committee on finance that Oracle had suffered losses exceeding R400-million as a result of the awarded tender.
“We make this call after the auditor-general informed parliament’s standing committee on finance that the corrupt tender, awarded fraudulently to Oracle, has resulted in financial losses exceeding R400-million,” said the EFF spokesperson, Leigh-Ann Mathys.
According to EFF, the 2017 IFMS contract included purchasing an Oracle system with the goal of enhancing municipal finances.
Municipalities riddled with corruption
“The system only saw the light of day because corrupt officials within the National Treasury engineered a programme that had no material benefits for the government, only to resign later and profit from the same corrupt tender while in the private sector.
“Over the past decade, we have witnessed a complete collapse of municipal financial management systems.
“The majority of municipalities are riddled with corruption, and there are no systems to prevent fruitless and wasteful expenditure, yet the IFMS was never used,” she said.
Since it had consistently demanded more control and examination of the National Treasury, the EFF claimed it was vindicated.
“There have been numerous questionable procurements, policies, and appointments of officials in the past that contradict good governance, proper financial management of public funds, and value for money.
“The R400-million financial loss in an economy suffering from severe poverty and joblessness is a serious illustration of the National Treasury’s incompetence.
“The same National Treasury is misleading parliament into implementing budget cuts, stifling economic growth, and causing the retrenchment of teachers.”
Call for police intervention
The EFF urged Ramaphosa to make the Special Investigating Unit (SIU) report on IFMS public.
Despite receiving the report in May of this year, the party accused Ramaphosa of ignoring it and failing to take any action.
She added: “The National Treasury has done nothing to demonstrate that this award was not corrupt. Instead, it has undermined the work of the auditor-general and the SIU, all in an effort to protect corrupt officials.
“We call on the Auditor-General of South Africa to fully utilise its legislative powers to pursue this matter to its natural conclusion and to open a case with the South African Police Service.”
