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.