Contractor runs up R35m card debt

Published Sep 20, 2011

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LOUISE FLANAGAN

A DEPARTMENT of Transport travel contractor spent more than R35 million on the department’s credit card – exceeding the card’s limit in a month.

Minister of Transport Sbu Ndebele said the department’s travel agent, Travkor EPA, which trades as Travkor Sisano, had been issued with a credit card.

In response to a question from the DA in Parliament, Ndebele detailed the spending for the 16 months from April last year to July this year – a total of R35.498m.

There were only three months in which the monthly spending on the credit card was less than R1m.

“The credit limit is R5 million a month,” said Ndebele in his response. This limit was exceeded last April when Travkor spent R6.07m on the card. No explanation was provided.

“The credit card is not over its credit limit. Payments are made more than once a month where necessary to avoid going over the credit limit,” said Ndebele.

The outstanding amount on the card at the end of July was R1.8m.

Ndebele said the card was used for bookings for flights, accommodation and conferences. No details of the expenditure were provided.

He said nobody else in the department or ministry had been issued with an official credit card in the period since April last year, the period that was the focus of the DA’s questions.

The department was not able to provide The Star with further information on this yesterday, but expected to be able to respond today.

The government’s Tender Bulletin records that the department appointed the Sure Travkor EPA Sisano joint venture in March last year to run its “travel, accommodation and conference requirements”, with a spending ceiling of R5m.

The department held an International Investors’ Conference in June, which could have accounted for some of the spending.

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