Gigaba faces prison detention over R794m

A thorough investigation is ongoing against Home Affairs minister Malusi Gigaba in connection with over R794million by his department.

Following the summon and according to the subpoenas, Gigaba faces prison detention if he does not avail himself before the court-appointed presiding officer.

Report reaching our correspondent clearly indicates that  Gigaba has been subpoenaed to answer why his department allowed an unpaid R67 million invoice owed to an information technology (IT) company undergoing liquidation to balloon to almost R800m.

Investigators in the liquidation process, the amount owed to IT company Double Ring Trading shot up when the dispute with the Department of Home Affairs began in 2009, to the current R794m, which liquidators are gunning for.

READ: Gigaba under serious fire over alleged visa free offer to China

Lorenzo Pavoncelli, one of the investigators appointed by liquidators SAF Trust to oversee the winding up of Double Ring Trading, asserted that they wanted the R794m, which they said could be forked out by taxpayers.

Subpoenas were issued by the South Gauteng High Court this week for 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, which resulted in the loss of 150 jobs when the IT company was forced to shut down.

Documents show that Double Ring Trading was tasked by the Department of Home Affairs from 2005 to, among other things, supply and install an information and communication technology (ICT) hub at the department’s premises in Tshwane.

Some experts have explained that apart from this particular case mr Gigaba has other issues to come out clean like the Gupta  citizenship saga during his first stint at the Home Affairs during ex-president Jacob Zuma’s rule.

The has been different allegations of irregularities linking the minister.

Another case in focus is the lavish foreign trips enjoyed by his wife which was widely reported, with the financial burden on tax payers and the government.


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