Unsuccessful bidders challenge awarding of multi-million rand tender by Lim Treasury

The unsuccessful bidders claim the award will marginalise a majority of local businesses, whose livelihood is dependent on government business, they also claim that the awarding of the tender was against the principle of empowering local businesses.

POLOKWANE – Unsuccessful bidders are challenging the awarding of a multimillion Rand tender by Limpopo Treasury in the Polokwane High Court.
The applicants reportedly comprise of 22 businesses under the umbrella of the Limpopo Travel Association (LTAA) who applied for an interdict against Treasury to restrain the department from implementing a tender awarded to TWF and Rakoma Travel.

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The travel management tender was advertised in September 2018 and awarded in January 2019 to the two companies, who will be working with six local travel agencies in the province.

The unsuccessful bidders claim the award will marginalise a majority of local businesses, whose livelihood is dependent on government business, they also claim that the awarding of the tender was against the principle of empowering local businesses.

According to LTAA’s lawyer, Tumi Mokoena, a memorandum was sent to Treasury voicing the association’s dissatisfaction. The memorandum was also forwarded to the Office of the Premier and the Director General, Nape Nchabeleng. The association challenged the provincial treasury’s processes, saying the contract was unfair as only six local businesses will be subcontracted by the two companies, and would relegate the majority of businesses to the sideline.

LTAA chairperson, Mike Modiba said the tender conditions create a monopoly. In its documents, LTAA is asking the court to “Interdict and restrain the first respondent (Treasury) from implementing the award of tender TC/LP18/2018, and any agreements concluded between the first respondent and second respondent (TWF).

According to Mokoena an interdict against the department was awarded on Thursday, 14 February. LTAA filed for a review of the awarded tenders, yesterday (Wednesday). Herman Vermaak, legal representative for TWF, confirmed his client is aware of the matter and has attended to it, they will fully respond, if necessary, after the court hearing, adding that TWF has been in the travel management business for more than 22 years and that the sub-contractors will benefit from their expertise.

Treasury MEC, Rob Tooley maintains that the proper process was followed. Kenny Mathivha, Spokesperson for Provincial Government and the Premier, said Mathabatha’s administration would not hesitate to investigate the matter if there was anything untoward, but said: “The tendering processes is centralised and open to everyone in SA. Everyone was called to bid and one company, based on a score, was awarded the the tender. Travel with Flair is compelled to subcontract 30% to Limpopo companies.”

Limpopo Treasury Spokesperson, Sydwell Sibanda said as the case was sub judice, Treasury will not comment at this stage.

nelie@nmgroup.co.za

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