The Gauteng government will terminate all contracts with Bosasa and lawyers have been instructed to initiate the termination with immediate effect, Gauteng premier David Makhura said on Sunday.
Makhura said that during his state of the province address on February 18, he made a commitment that the Gauteng government would undertake a review of any business done with Bosasa in the light of allegations emerging from the Zondo Commission of Inquiry into state capture.
He had asked the Gauteng ethics advisory council to undertake a detailed review of any contract between Bosasa entities and any department or entity of the provincial government. This included checking whether any contract was awarded irregularly or through corrupt means.
“I can now confirm that since 2003/4, the department of social development has been having a contractual relationship with Bosasa regarding a facility accommodating children in conflict with the law. The department has so far paid Bosasa R600 million over the past 15 years.
The provincial government, as part of its stance on zero-tolerance for corruption, will not be doing business with any service provider or entity that is involved in corrupt practices. All contracts with Bosasa will be terminated. Our legal team has been instructed to initiate the termination with immediate effect.
We have decided to terminate any contract with any service provider that is implicated in corruption and state capture, as we did with KPMG and McKinsey last year. Corruption cannot be normalised and remains our number one principal enemy both in government and the private sector,” Makhura said.
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