Tender oversight requested after anonymous letter alleges irregularities at KwaDukuza Municipality

Mayor Lindile Nhaca confident all correct processes had been followed in approving the municipality's tender panel.

An anonymous letter accusing KwaDukuza municipality (KDM) management of corrupt tender processes has prompted opposition parties to request increased oversight.

The letter was sent to opposition councillors at the end of April alleging that three companies on an approved KDM panel were owned by the same person.

It was further alleged that said company owner had been making payments to KDM management to secure preferential tender contracts.

KDM had previously approved a panel of 25 contractors who would be allocated R1.2-billion in flood repair contracts over the next 14 months.

This was done to expedite the tender approval process and by implication, the speed of repairs. Responding to statements made on the issue by KwaDukuza ActionSA caucus leader, Nel Sewraj,

KDM mayor Lindile Nhaca said she was confident all correct processes had been followed in approving the panel.

“We are confident in the committees that were charged with the responsibility to ensure that all processes were indeed followed in compliance with the Municipal Finance Management Act. The chief financial officer is the chairperson of the tender adjudication committee and we trust his diligence and years of experience,” said Nhaca.

She went further to say that if ActionSA were confident about the allegations, they should take legal action against the municipality and relevant individuals.

“We cannot pre-empt any outcome nor speculate at this point in time. Should this matter warrant an investigation, the council must express itself,” she said.

ActionSA had previously sent formal requests to both the municipal manager and the KwaZulu-Natal auditor general to institute oversight and real-time audit processes.

“Upon our investigations it was discovered that registration numbers and registration dates for some of these 25 companies could not be found. One company could not be properly identified due to multiple use of that company name, and some of these 25 companies were either deregistered or in the process of being deregistered,” said Sewraj.

In the time since the letters and mayor’s statement, the directors of one contractor on the panel had appeared in the Pietermaritzburg High Court on charges that the company had defrauded the KwaZulu-Natal Department of Transport out of R1.6-million.

Whether this will have an effect on KwaDukuza’s dealings with the company remains to be seen.

KDM acknowledged receipt of specific questions sent by the Courier and said that an item on the matter would be presented to Council on May 25.


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