SABC did not follow procedure in awarding R7m contract – High Court rules

The High Court, Gauteng local division has declared a consulting contract awarded by the national broadcaster South African Broadcasting Corporation (SABC) was unlawful and invalid.

The consulting firm, Mott MacDonald Africa (PTY) LTD was tasked for the replacement of lifts at the SABC.

The Special Investigating Unit (SIU) released a statement on Sunday, it said it joined the SABC in the High Court for a review of the contract on the basis that the SABC awarded the contract without following any of its prescribed procurement policy processes.

“The SIU was given powers to join proceedings under Presidential Proclamation R29 of 2017, dated 1 September 2017, to investigate and take action in respect of contracts entered into by the SABC with various parties. The matter was centred around the fact that the SABC did not award the contract on an open-bidding basis but instead, it treated Mott MacDonald as a sole provider of services contrary to the regulatory rules of the procurement scheme.”

The SIU said the contract awarded to MacDonald was R7, 033 464. SIU head advocate. Andy Mothibi said: “This is a continuation of the implementation of the SIU investigations outcomes and consequence management to recover monies lost by the SABC. There are other cases enrolled in the High Court and in the Special Tribunal awaiting adjudication and will result in further recoveries for the SABC.”

The court ruling:

(a) Declared the decision of the SABC to award the contract on 06 July 2015 unlawful and invalid, and accordingly reviewed and set aside;

(b) Mott MacDonald was ordered to pay the profits it made under the contract to the SABC;

(c)  Mott MacDonald was ordered to provide a detailed breakdown of its reasonable expenses verified by a duly qualified expert within 30 days.

(d) The SABC has been ordered to appoint an expert to verify the reasonableness of such expenses within 30 days thereafter.

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