Government suspends Smit Amandla probe

The Department of
Agriculture, Forestry and
Fisheries has suspended
an investigation into its
procurement procedures,
seemingly because
Ernst & Young sent its
forensic audit report to the
Democratic Alliance.
“The department has
lost faith in the work of
Ernst & Young and, as a
result of these concerns,
has resolved to put the
investigation on hold,” it
said in a statement
on October 18.
Earlier this month, the
auditing firm found in its
report substantial evidence
of irregularities in the
tender process regarding
the awarding of the fleet
contract to Smit Amandla
from 1995 to March this
year. Evidence indicated
that the government was
defrauded of about R1.6
billion, the department said.
As the report was
released, the department
announced that Smit
Amandla was the preferred
contractor for next year.