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Controversial DIS, Dignia contract flouted PPADB Act

Publishing Date : 24 September, 2018

Author : UTLWANANG GASENNELWE

A contract between the coveted Directorate on Intelligence and Security (DIS) and a controversial Israeli company Dignia (Pty) Ltd involving the acquisition of security equipment and surveillance platform with associated training has flouted basic tendering procedures, Weekend Post has learnt.


The revelations have been exposed in the Attorney General’s highly classified report titled “Preliminary findings by the Attorney General on the contract between Office of the President and Dignia Systems (Pty) Ltd for the acquisition of security equipment and surveillance platform with association training.” The report unearthed many shocking revelations on the controversial DIS and the Dignia company and exposed that in essence the contract is not in compliance with the provisions of the Public Procurement and Asset Disposal Board (PPADB) Act.


In the confidential report, the AG found out that “the effective date of the contract is not stipulated” and that there is “no indication that the request for quotation method was authorized by PPADB” on the duo’s agreement. It further goes on to highlight that the contract also exceeds both the Request for Quotation (RFQ) and Ministerial Tender Committee (MTC) thresholds. The AG also found out that: “no invitation to tender was floated which could have clearly stipulated the deliverables, meaning the deliverables are only known to the contractor” which is against established tendering norms.


In addition, the Attorney General pointed out that “payment was effected before delivery and no advance payment guarantee has been provided by the contractor.” Furthermore, the secret report brought to light that there are also “no provisions for risk of loss exposing government to risk and possible loss in the event something happens to the goods whilst on transit before delivery” adding that there are also “no provisions for defect liabilities, warranties and quality assurance checks.”


The findings also uncovered that the contract does not make provision for withholding taxes that are due on each component of the contract. In light of the sneering AG findings, the new DIS Director General Peter Magosi earlier in July wrote to the controversial Israeli company, in particular Mordechai Barashi informing him to find time to meet up and discuss further the dubious contract that was entered in by the company and ex spy Chief Isaac Kgosi at the time he was at the helm.


Magosi told Barashi that: “kindly find attached the points raised by the Attorney General which are fundamental in crafting the way forward in implementing this contract. I hope you will find time to indulge and reflect on the points raised and act accordingly.” He further stated that “in that regard I invite Dignia System Ltd to a meeting in Gaborone, Botswana preferably on the 29th to 30th July 2018 failing which the alternative date would be 5th to 6th August 2018. The purpose of the meeting will be to resolve the issues as raised herein by the Attorney General.”


Earlier on, in June, Kenamile Badubi who was acting for Director General Peter Magosi also wrote to Barashi at Dignia System Ltd highlighting that they “have since received feedback from the Attorney General regarding the status of the contract.” Badubi stressed that “the contract has been found to be in contravention against the PPADB rules and regulations.” He said the Attorney General has also noticed that the due diligence in crafting the contract was not followed hence a lot of mistakes and omissions which render the contract implementation impossible.


“In that regard, we have been advised to renegotiate and re-draft the contract and align it with the laws governing procurement in Botswana and the requirements of the regulatory bodies.” Before that, on May Magosi also wrote: “As you are aware, Col. Isaac Kgosi is no longer the Director General of the Directorate of Intelligence and Security (DIS) of Botswana. I also understand that your company Dignia Systems Ltd and/or Aeronautics Ltd had earlier made some arrangements involving training in various courses. The Director Training is equally not privy to the details of the contract pertaining to the provision of these training courses.”


The irregularities in the deal compelled Magosi to suspend the contract for the acquisition of security equipment and surveillance platform with associated training. The deal was financed by the biggest financial scandal in the country involving P230 million that was diverted from the National Petroleum Fund (NPF) last year by the intelligence organ under Kgosi. The money was transferred to the DIS for construction of fuel storage tanks before being diverted for the alleged purchase of military hardware from Dignia Systems. Meanwhile Gaborone socialite and businessman Bakang Seretse, Botho Leburu and Kenneth Kerekang are facing money-laundering charges in relation to the contract in question while Kgosi is still at large.

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