The City of Tshwane reportedly handed over infrastructure projects worth R12 billion to an engineering consultancy to manage, which reportedly made a quarter of a billion in the past six months.
The Sunday Times reports that Tshwane mayor Solly Msimanga wants the city manager to answer about the matter.
The city manager, Moeketsi Mosola, reportedly brought in the engineering consultancy, named as Midrand-based GladAfrica, despite legal advice that suggested that doing so would be illegal.
The manager allegedly further overlooked resistance from city officials, some who, after questioning the decision, were stripped of their powers.
It is reported that the mayor of Tshwane has requested his legal adviser to probe the contract between the city and the consultancy.
The weekly reports GladAfrica made R250 million out of the city since November last year.
The Tshwane Bus Rapid Transport system is among the projects GladAfrica has overseen. The city manager picked the company from a list he got from the Development Bank of Southern Africa (DBSA).
They net 10% of the city’s projects it oversees and charge the city between R2,000 and R4,000 an hour for contractual skilled professionals.
A city official told the Sunday Times the consultants, however, rely on subcontractors to do the actual work.
Msimanga has asked for clarity on the procurement of the contract, specifications about the tender and the operational risks to the city.
The city manager, however, did not want to comment to the newspaper.