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The contract for a R1.8 million bust of former president Nelson Mandela was awarded to a company owned by Dali Tambo, without being put out to tender.
The Sunday Times reports that tender regulations were not followed, because Parliament considered the project "emergency expenditure", according to an opinion by Parliament's supply chain management section.
This was despite the fact that the 20th anniversary of the country's democracy was not a surprise event.
The newspaper says the 2.2m-high bust is expected to be unveiled on the National Assembly's steps on April 28.
The cost of it escalated from R1.8m to R2.6m.
The contract was awarded to Koketso Growth, owned by Tambo, the son of ANC stalwart Oliver Tambo.