BOOYSENS – Independent Review Panel clears City Power of all allegations of tender manipulation of R1,25b issued to Edison Power Group (EPG) last year September.
In a media briefing held at City Power Joburg Headquarters, Booysens on Tuesday November 5; Chairman of the Board at City Power, Rev Frank Chikane, MMC for Environment and Infrastructure Service for the City of Joburg, Clr Matshidiso Mfikoe and City Power’s MD Mr Sicelo Xulu, explained the report, its findings and the recommendation of the panel.
The panel that was chaired by Advocate Vuyani Ngalwana (SC) cleared City Power of the allegations of fraud and corruption relating to the advance metering infrastructure (AMI) tender.
Clr Mfikoe said, “The City is committed to serve Joburg with integrity. Whoever is found guilty of any misconduct, necessary steps will be taken. Also this report will be submitted to the Public Protector.”
On January 18 this year, it was alleged there had been manipulation in the tender process, to fix the tender for the benefit of a particular bidder. In response, on January 28, the Board of City Power appointed an Independent Review Panel consisting of three members of the Johannesburg Bars; Advocate Ngalwana (SC), Advocate Sandile Khumalo and Advocate Farzanah Karachi. They were given full and complete access to all documents relating to the tender and full and complete access to all staff members involved in the tender process, including the people who are no longer in the employ of City Power.
Rev Chikane explained, “We have zerotolerance on corruption, when issues are raised there needs to be evidence. For us to have a sense of comfort we appointed this Independent Review Panel to deal with this matter. They have found no evidence in AMI tender. Though they took
longer than expected we are satisfied with their findings.”
The Independent Review Panel concluded, “We could find no evidence of improper interference in the bid evaluation process and we can find no evidence of irregularity in the award of contract 1907GS. We find no reason to believe that the contract was awarded to EPG on any other basis that than it had obtained the highest overall score.” City Power’s MD Mr Xulu has been cleared of all allegations that he interfered with the procurement process to the benefit of a friend of the president. In the result, and on the evidence before the panel, they can find no basis for imputations that the article sought to make on the MD.
“I appreciate that this is finally over, there’s no impropriety. We are now looking forward to perfect the system and reach our deadline of installing AMI by 2015,” noted Mr Xulu.
No evidence was found of impropriety in the determination of the contract value. However, the Panel found that the process followed was not
ideal.
They are of the view that the approval of a budget should precede the award of the contract, not follow it. The Panel recommends that City Power should budget properly for key projects and secure budget approvals before going out on tender, even where these budget approvals would extend over a number of financial years.
