‘Compromised’ R4 billion Tshwane tender cancelled

The Tshwane metro mayor has cancelled a “controversial” R4 billion yellow plant tender that was meant to ensure the continuation of services in the metro.

This after a contract for the hiring of vehicles – crucial to the provision of service delivery – expired in September.

The tender was meant to run over a three-year period and was focused on the corporate hire of general construction vehicles, yellow plant equipment, refuse removal vehicles, specialised equipment and machines for the municipality.

The tender process was managed under the appointed ANC administrators who were deployed to Tshwane, earlier in the year, Tshwane mayor, Randall Williams said.

He added that he had received a detailed probity report conducted by Nexus Forensic services which examined the processes concerning the administration of the tender.

“The probity report was damning, and I immediately indicated that the tender would be fully investigated further, while I also delivered the report to the Special Investigative Unit (SIU).”

He said the tender process that occurred under the administrators had clearly been “compromised”.

“The report highlighted various unlawful and irregular practices that took place in the supply chain management of this R4 billion yellow plant tender.

“As a result of this investigation the acting city manager has cancelled this tender (SS03- 2019/2020).”

The report found:

• 71 employees in the service of the state have either direct or indirect conflicts of interest in the bidding process of this specific tender,
• 35 bidding entities share directorships which were not disclosed in the bidding documents which is indicative of collusive bidding,
• 49 bidders are either directly or indirectly linked to 68 city employees and employees of three other state entities;
  three employees in Tshwane were identified as being directors of some of the recommended bidders, none of which was disclosed, and
• Of the 767 companies who were bidding there were six companies whose company details could not be matched against the companies and intellectual properties commission database.

Williams said the metro had already started the work to ensure it moved towards re-advertising a new tender and ensuring all the lawful processes are followed.

“This situation is not ideal for service delivery as it can cause delays and will require ad hoc arrangements to support the core business of the city,” he said.

“Nonetheless, we simply cannot allow an unlawful tendering process to proceed. I will always strive to ensure we create value for the residents of Tshwane in all that we do through processes that are open, transparent and lawful.”

Williams said this report would also be delivered to the National Treasury, so that the bidders involved could be held to account and blocked at a national level on national databases.

This article first appeared on the Pretoria Rekord and was republished with permission.

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