JSE-listed Faritec is not impacted by a scandal around irregular tenders granted to its subsidiary Enterprise Connection (EC), it says.
Reports this week state the Gauteng Department of Housing awarded EC a R75 million infrastructure tender, although its acquisition council had only approved R44 million.
In addition, it is alleged that three tenders worth R76 million were awarded to the company, without tender procedures being followed.
However, Faritec CEO Simon Tomlinson says from Mauritius that contracts with the housing department were excluded from its purchase of the company.
Faritec bought EC in February for R54 million. Tomlinson says the housing contract was excluded as the department had already stopped payment on it.
"We very specifically carved it out of the contract."
Related stories:
Faritec sees bottom line growth
Faritec not shy of growth
Faritec to triple bottom line
Faritec aims for R1bn
Faritec finalises R54m purchase
Faritec makes R16m purchase
Share