Directorate of Intelligence and Security Services (DISS) Director General, Isaac Kgosi says he can only account for P118 million from the P230 million that was transferred to his organisation from National Petroleum Fund (NPF).
DISS had requested the sum of P250 million for engineering structures of storage facilities and expansion of strategic fuel storage facilities.
After being given access to the funds, Kgosi then wrote to the Director of Energy Affairs directing that an amount of P230 million be transferred to Khulaco Pty Ltd on behalf of DISS.
The DIS later diverted the funds towards the purchase of military grade equipment to be used in fighting poaching, human and drug trafficking which are a threat to the country’s economy.
An amount of P118 million was paid to an Israel company Dignia Systems for the purchase of the equipment. These are the funds that Kgosi owned up to this week when he
appeared before Parliament’s Public Accounts Committee (PAC).
The DISS boss could not be drawn to say what happened to the other funds or who should account for them. He said he does not know why he is being asked to return the funds.
Kgosi explained that the consignment that was bought for P118 million from Dignia Systems has not yet arrived in the country. He said he was shocked to learn about a letter from former Acting Permanent Secretary in the Ministry of Mineral Resources, Green Technology and Energy Security Dr Obolokile Obakeng that DISS should pay back the P230 million during a meeting in February this year.
At the PAC hearing it was revealed that there was nothing that the Auditor General was able to pick from Khulaco Pty ltd as financial statements or money trail for the P118 million. Kgosi stated that he could not comment on where the remaining funds are because that is the same question that would be asked in court.
It also emerged at the PAC hearing that the Khulaco Pty ltd account to which public funds were transferred, was not sanctioned by Accountant General as the law dictates. Kgosi has told the committee that he knows little about the Public Finance Management Act.
It was revealed at the hearing that the DISS approached PPADB asking for single outsourcing but the request was turned down and the spy agency was directed to go for public tender. It was following this rejection that the DISS then asked for variation of the funds.
Kgosi would not be drawn into discussing the dealings between DISS and Dignia Systems. He said he would also not know if the Israeli government knew about the contract between DISS and Dignia Systems. The DISS director also refused to comment if Attorney General Abraham Ketshabe and former president Dr. Ian Khama knew about the contract between DISS and Dignia Systems.