Taxpayers in the dark over lights deal

A local company was awarded a tender for the installation of high-mast lights around the City of Mbombela Local Municipality (CMLM) without appearing on the closing bid registration, raising questions from National Treasury whether the tender process was unfair and flawed or not.

The contractors were appointed in March and May of 2020 and an initial email from CMLM indicated that the successful bidders were Igoda Projects, Sibusisiwe Electrical, Machawana Trading Enterprise JV Shando and Zwide Enterprises.

However, only Machawana Trading Enterprises, Sibusiswe Electrical and Zwide Business Enterprises were sent letters by the municipality to inform them that their bids were successful.

Upon closer inspection of the tender documents, it was discovered that Machawana Trading Enterprises was awarded the tender for bid 148, however, its name does not appear on bid 148’s closing bid registration.

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According to National Treasury, this could mean that the whole process was flawed and unfair.

“If the bidder does not appear on the bid register, and such a bid is awarded to a supplier who is not on the bid register, the procurement may be deemed as procedurally unfair and flawed,” said Treasury.

All tender documents and closing bid registration documents were procured through the municipality however, multiple queries over a period of two months asking for clarity on the matter have gone unanswered.

When Machawana Trading Enterprises’ director, Milton Moagi, was asked about his company not being on the closing bid registration, he said all questions should be directed to the municipality.

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Moagi said he had gone through all the correct processes and submitted all the correct documentation on time and faced no objections.

He said the issue of his name not appearing on the closing bid registration could be human error on CMLM’s part and therefore it would need to respond.

He added that any if anything incorrect was published by Lowvelder, he would be taking the paper to court.

“This is the last call I am receiving from you regarding this issue, you publish anything, you must know that now you are challenging me for something I have nothing to do with, it is the issue of Mbombela,” said Moagi.

CMLM spokesperson, Joseph Ngala, had originally offered to send the minutes of the bid adjudication committee, but did not send the documentation.

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Lowvelder has been requesting the minutes since late March without success.

National Treasury said the tender process must be initiated and concluded in terms of the supply chain management legislative and policy framework and it is imperative that organs of state procure goods, services and works through a system that is fair, transparent, equitable, competitive and cost-effective.

“Upon closing date and time the bid box is opened and the bidder’s proposal/response to the bid is date-stamped, numbered and registered. The register of the bids received must indicate all bids received at the stipulated time and date. Late bids are indicated as late.

“This process promotes transparency and openness in the bidding process. Against the backdrop provided, the procuring institution must debrief unsuccessful bidders on the administrative decisions taken on procurement process concluded.

“Bidders, in terms of section 33(1) and (2) of the Constitution of the RSA, 1996, have the right to administrative action that is lawful, reasonable and procedurally fair and everyone whose rights have been adversely affected by administrative action has the right to be given written reasons.

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“In this regard, the OCPO refers you to section 5 of the Promotion of Administrative Justice Act that makes provision for a procuring entity to make available reasons for the administrative decisions taken, should the other suppliers wish to follow a court process.”

An attorney at Kruger and Partners, Johan du Preez, said he was concerned that the tender procurement process was flawed as a bidder should not be awarded a bid if it does not appear on the closing bid registration.

“I do not think the process was dually followed and I am unsure how the tender was awarded in the first place if Machawana’s name is not on the closing bid registration. This needs to be looked into and investigated,” said Du Preez.

CMLM had still not responded to media queries regarding the bidding process at the time of going to press.

Regarding the current state of the high mast lights in the municipality, Ngala did say 34 high mast lights had been installed and energised, with 10 installed and awaiting Eskom to energise them.

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He said 60 more foundations for high mast lights have been built and are awaiting material (lights) delivery. He said the project will be completed by June next year.

In total, Ngala said, 160 high mast lights are to be installed across Mbombela, of which 104 will be installed by June and then 56 planned for June 2022.

He added that R21,6 million had been paid as of March for work done to date and that the cost of a single high mast is R409 215.

“Appointments were made in 2020 and tenders were for three years so yes, the contracts are still valid,” said Ngala.