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ETHEKWINI officials found guilty of corruption and maladministration will face criminal charges and suspension vowed city manager Sipho Nzuza at a media conference on Thursday where the city’s zero tolerance on corruption was emphasised. It was also announced that lifestyle audits were to be conducted on all employees.
Nzuza was responding to recent media reports of corruption and maladministration within the municipality with reference to contracts for the manufacturing and distribution of orange recycling bags and a contract for the supply, delivery and construction of Urine-Diversion toilets in various wards within the metro.
A forensic report revealed that in the case of the orange recycling bags, a tender had been irregularly awarded after alleged collusion by certain officials with the bidder.
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Acting Head of Legal Service Sbu Shezi, elaborating on a payment made recently to the company awarded the orange bag tender, said R7.7 million had been paid to the company due to a clause in the contract agreement which stipulated that every year there would be an increase.
“This amount was due to the company as per the contractual agreement,” he said, adding that if the final report revealed there was non-compliance as per the agreement, the R7.7 million and other payments already made could be recovered.
He said the contract had only six months remaining and normal procedures would be followed including advertising a tender for the supply of orange bags.
In the case of the Urine-Diversion toilets, Nzuza confirmed that two officials had been suspended after the forensic report revealed that the city had paid more than R36-million for 2200 urine diversion toilet which were never supplied. “I want to emphasise that this suspension does not mean that a person is guilty. It is an opportunity to see if we get credible information during the investigation and to ensure that a person does not interfere in the investigation. It will also allow them to prepare to defend themselves.”
“I wish to clarify that additional work still has to be done as a number of these corruption allegations will be under criminal investigation and the Municipality will cooperate with various law enforcement agencies that may have vested interest in some of the matters.”
Nzuza went on to explain that the city had a functional Independent Financial Disciplinary Board chaired by an esteemed law expert and which included an official from the KwaZulu-Natal Treasury, a member of the Audit Committee, a Senior Manager in Legal Services and Head of the City Integrity and Investigations Unit (CIIU).
“The board seeks to strengthen the City’s governance processes and improve its accuracy in handling financial misconduct matters. The board also ensures that further steps are taken after recommendations are made and that disciplinary proceedings are carried against the transgressors,” he said, adding that disciplinary action started with precautionary suspension.
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The City also has a functional Blacklisting Committee that ensures that service providers found to be in breach of the MFMA and SCM regulations are blacklisted and prevented from doing business with the municipality and the public sector.
The municipality has blacklisted more than 20 companies to-date for a number of offences which range from non-disclosure of business interests, falsifying documents, defrauding the Municipality and tender collusion. ”
With regard to the process in awarding tenders, Sandile Mnguni, head of Expenditure explained the steps taken. He said firstly the Bid Specification Committee would review specifications before a tender was advertised.
“Once they are happy with the specifications, the tender is advertised and tender documents are received. Thereafter, it goes to the Bid Evaluation Committee where they apply themselves and make recommendations. These recommendations are then made to the Bid Adjudication Committee (BAC) who reviews the documentation to ensure everything is in order.”
Mnguni said for tenders under R10 million, the BAC could make the decision whether to award the tender or not. “For tenders over R10 million in value, they make recommendations to the accounting officer, which is the City Manager, regarding awarding it.” He said however, that city manager had set up the Executive Acquisition Committee to review these applications before it reached his office.
“There are six people sitting on this committee who are experts in their fields and who will make a recommendation to the City Manager’s office,” he said.
Head of CIIU Mbuso Ngcobo said as part of being proactive the City had planned to conduct lifestyle audits on employees – which would include implicated officials.
“It was part of the plan to conduct lifestyle audits on employees, this is already in place,” he said. He said CIIU was working with law enforcement agencies regarding possible criminal charges to be laid.
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