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Gigaba summoned for R794m invoice

Investigators tasked with liquidating an IT company are going after the department of home affairs for the unpaid bill.

Malusi Gigaba
Malusi Gigaba

Home affairs minister Malusi Gigaba has been summoned by the High Court in Johannesburg to account for an unpaid invoice owed by the department of home affairs that has accrued R727m in interest between 2009 and 2018.

The outstanding amount was brought to light by investigators tasked with assisting in the liquidation process of IT company Double Ring Trading after it went into voluntary liquidation in 2016.

The Star reports that Double Ring’s dispute with DHA began in 2009 when the outstanding amount for supplying and installing an information and communication technology hub at the home affairs offices in Pretoria was totalled at R67 million.

The outstanding amount on the contract that was initiated in 2005 has since ballooned to an amount of R794 million, which investigators are trying to recover.

According to News24, said contract contained a clause which stipulated that outstanding amounts will accrue interest at a rate of 5% plus prime in US dollars.

The department denied that the hub was installed.

The High Court in Johannesburg has given the directive that requires Gigaba to appear before a court-appointed presiding officer later this month and provide documents about the government’s alleged complicity in the non-payment of the bill.

The outstanding money reportedly led to the company having to close down and lay off over 150 employees.

Home affairs spokesperson Thabo Mokgola refused to comment on the matter stating that it was still sub judice. The Citizen.