Military's R500-million plane contract — for no planes

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The Department of Defence might have to pay hundreds of millions of rands to a company that won a controversial VVIP air travel contract seven years ago, even though no work was ever done after the award.

The department has been locked in litigation with Adonai Aviation over the controversial contract — a five year bid to lease two aircraft to ferry dignitaries, starting in 2012. At the time, the contract was for R827 975 162. In today’s terms, the contract, which was dollar denominated, is worth billions of rands.

Neither the department nor Adonai’s attorneys responded to questions on this. Masiza could not be reached for comment. On Monday, Gulube confirmed that he was in discussion with the National Treasury over the contract because the department no longer has a need for it. One of the sources said: “He fears that he could be held responsible for fruitless and wasteful expenditure.”

The agreement also said that Elioworx, as the new entity driving the case, would appoint Cohen and Solomon as the new legal representatives on the case. This is despite the two already being involved in the litigation since 2015.

 

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