Department of Transport extends contract of company under investigation

01 Feb 2016 | Admin Author

The Democratic Alliance in the Eastern Cape has called for urgent intervention after the Department of Transport extended the contract of a company under investigation for fraud and mismanagement.

DA MPL, Dacre Haddon, has also accused Transport MEC, Thandiswa Marawu, of ignoring a directive from the portfolio committee on transport.

Transport Department spokesperson, Ncedo Kumbaca, says they've extended the scholar transport contract of One Future Development 46 until a new service provider is appointed, hopefully at the start of the new school term.

However, Haddon says the extension of the contract by three months to the company is unacceptable.

"I am hoping that initially the committee will meet urgently as I have requested and that we will actually find out why the MEC and the Premier have elected to extend this contract when it is known that there is a forensic audit against these people"

Haddon has also accused the ANC of political interference in the matter.

"Secondly why is it that the ANC is actually dictating to a portfolio committee and over ruling the decisions of the portfolio committee about extending this contract. That is the most serious aspect of this whole issue" he said.