The move follows a preliminary investigation by Ernst & Young into tender irregularities which discovered various concerns regarding the contract held by Smit Amandla Marine between 1999 and 2012, says FIS website.
The investigation began in April, when the contract with Smit Amandla Marine ended and the navy took over the running of SA's patrol vessels while managing coastguard duties.
Department acting director general Sipho Ntombela said preliminary investigation uncovered concerns around DAFF's five year extension of Smit Amandla Marine's in 2004 that seemed not to have followed any tender process. The report says the contract also stipulated an unusual payment of R56m "in addition to any amount detailed in the main agreement," according to FIS website.
Read the full article on www.fis.com
