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Of recent the Elias Motsoaledi Local Council, awarded a fleet management contract worth R 29 million over a 3 year period to Fleet Horizon, without following any of the Acts relevant and the Municipal Finance, Structures, Systems and Supply Chain Management Act. Not having advertised the tender, waiting 30 days for submission, to evaluated the different tenders, having sites meetings, etc. it violated every possible regulatory procedures that were supposed to have been followed and even went so far as to advance to the “awarded tender” on the -05th December 2014 over R 600 000 without him having done any work whatsoever on the contract for Council, and the actual contract being conspicuously absent from Council records, to be used as substantiating documents to validate the payment
If you are of the opinion that this kind of procedural processes were followed by the Elias Motsoaledi Local Council were a violation and amounted to gross mismanagement and maladministration - “you ain’t heard nothing yet”
Recently the Amathole District Municipality in the Eastern Cape awarded a tender to Siyenza in the amount of R 631 000 000 to construct/erect 66 000 toilets in the rural areas in an around the province.
Not taking into account the procedures that should have been followed in this instance; everything seems well on the surface until you start to dissect what has actually happened.
Ø The tender, irrespective of its value being R 63 million was never advertised as what should have been done in terms of the procedural guidelines, and regulatory prescriptions that should be followed in respect of any procurement in excess of R 200 000 or even complying to Article 32 of the Procurement Chain Act which ‘prohibits a tender being awarded without the tender process having been followed to the letter’;
Ø If taken that the worth of the tender amounts to R 63 000 000 and 66 000 toilets are to be constructed the individual cost per toilet amounts to R 9 560.00 which is excessively high taken the logistics and requirements that is needed to construct a “pit toilet” as none of the toilets would be linked up to a central sewerage system;
Ø A dissection of the company that was “awarded the tender” indicates that:
o The son-in-law of Jacob Zuma is yet one of the Directors to Siyenza;
o The son of Gwede Mantashe, the Secretary General of the ANC’s is yet another Director to Siyenza;
o The son of Lindiwe Zulu, the Minister of Small Business Development is yet also one of the Directors to Siyenza;
Ø Amazingly yet once again the Amathole District Council, paid the Contractor Siyenza an absurd amount of R 60 000 000 (Sixty Million) without any work being done on the contract as an ‘advance’ or douceur, ex gratia or even quid pro quo payment.
Ø It being against all tender awarding that successful contractors could or would be allowed to appoint sub-contractors to do the actual work, yet in the case of Siyenza it is believed and being common knowledge that it has appointed 45 sub-contractors to do the work, and this being unorthodox in that the District Council has a financial obligation to Siyenza in terms of the contract, and the 45 sub-contractors would have to be waiting for Siyenza to pay them. In all likelihood their tender price per toilet being much less than the R 9 860 that Siyenza is being paid by the Amathole District Council; and this in essence amounts to Siyenza financially benefitting from the contract in an unorthodox and un-procedural manner;
Ø Act 32 of the Procurement Chain Act prohibits the awarding of any tender or contract to any business without it having followed the required tender procedure which Amathole conveniently not only ignored but also violated.
It would be safe the say, that despite Jacob Zuma’s State of the National Address that tenders would NOT be awarded to civil servants, their direct of indirect families as in this instance it is more than evident that the Amathole District Council, couldn’t be bothered to have followed the procedures as detailed and in all likelihood someone with Council also financially benefitting from the ‘deal’.
Eradicating corruption, what a joke, Mr. President!!!! – even your own son-in-law is benefitting from this deal.
