This after the Gauteng High Court Division in Polokwane last week set aside the awarding of a multi- million rands security tender to Hlimbyi Trading Enterprise and ordered the Greater Tzaneen Municipality to re-advertise the tender afresh with immediate effect.
The court also ordered that Kgosi Monene, not Hlimbyi continue to render the security services to the municipality until a new bidder is declared after due processes.
The court decision means that the 125 security guards who were employed by Hlimbyi to man the municipal sites including the civic centre since the beginning of December are now without jobs.
Some of the guards confirmed that they are now jobless and that they have not been paid for the three month and half months they worked.
The owner of Hlimbyi Trading Enterprise, Audry Shiphalana could not be reached for comment.
Hlimbyi was awarded R27 million over three years security contract in November last year by the former acting municipal manager, Obby Mkhombo in disregard of the recommendation of the municipality’s bid adjudication committee which recommended that the bid be re-advertised to comply with required legislation and prescripts. At the time the tender was awarded its validity period had lapsed.
The losing bidder Kgosi Monene whose bid was R2 million less, cried foul, accusing the municipality, particularly the former acting municipal manager, Mkhombo of running an irregular tender process and took the matter to court.
The court found that the conduct by Mkhombo in awarding the tender to Hlimbyi was irregular, illegal and unlawful as well as being unethical.
“Although the court can not make a specific ruling that fraud was involved, it can nevertheless find that Mkhombo’s conduct was not far from fraudulent conduct,” said Judge Frans Kgomo.
Judge Kgomo added that Hlibyi’s acquisition of the tender was precipitated by reckless action on the part of Mkhombo.
The municipality was ordered to pay the legal costs of the court application up to January 15 while Hlimbyi was ordered to pay the full costs by the court.
The Greater Tzaneen Municipality spokesperson, Neville Ndlala said the municipality will abide by the court order and will in no time restart the process of awarding the security tender.
“We will also strengthen our supply chain management processes and ensure that necessary checks and balances are conducted,” said Ndlala.
