Spokesman says process ‘not flouted’.
BUFFALO City Metro authorised payments of more than R13-million to three different companies for information technology systems before the contracts had even been signed.
The payment authorisations were made days before the financial year-end, June30, which this year fell on a Sunday.
Documents in possession of the Daily Dispatch reveal that acting director of community services Dr Mkhululi Nkohla authorised cheque requisitions to three companies – Lugogwana Comtech (R3.02-million); Empire Technology (R6.8-million) and LC3 Solutions (R1.7-million) three days before the directors of the companies signed contracts with the metro.
BCM municipal manager Andile Fani signed letters of appointment for Lugogwana Comtech and LC3 Solutions on Friday June28, the last working day before the financial reporting period’s close, and for Empire Technology on June26.
Both Lugogwana Comtech and LC3 Solutions are based in East London while Empire Technology, also known as Empire Praxis Joint Venture, is based in Johannesburg.
This was subject to the companies’ directors accepting the terms and conditions of the contracts.
The contracts were:
- A R9.99-million tender for the supply, installation, maintenance and support of the city’s debt system.
The deal saw a R3.02-million cheque requisition authorised to pay Lugogwana Comtech three days before the company’s managing director Khanyisa Lugogwana signed the deal.
Documents in possession of the Dispatch show that Lugogwana invoiced the metro the same day she entered into the contract;
- A R15.048-million contract signed between BCM and Empire Technology on July1 for an electronic procurement system.
However, a BCM official requested a R6.8-million cheque to be paid to Yuri Mohan, listed as a manager of Empire Technology, three days before Mohan signed the contract.
Mohan submitted an invoice to the metro three days after the cheque payment had been requested; and
- A R3.079-million tender for the supply, support and maintenance of an anti-virus solution for BCM’s IT equipment was secured by LC3 Solutions CC, trading as Simo Solutions.
The company’s Ntombizakhe Madala was informed she had been successful in her bid on June28, and a cheque for R1.559-million was authorised on the same day.
This was three days before Madala had signed the deal to provide the software to the metro.
Lugogwana confirmed that the system she was contracted to install had yet to kick in due to the complexity of the process, while Mohan said his would be operational in January next year.
BCM spokesman Keith Ngesi denied that the procurement process had been flouted. (See sidebar report for BCM’s full response).
Mohan and Lugogwana declined to discuss the terms of their contracts, saying only that before one undertook any software related work, the city had to pay for licensing.
Madala could not be contacted for comment. — zineg@dispatch.co.za
Mystery of BCM’s R13m payments
BUFFALO City Metro authorised payments of more than R13-million to three different companies for information technology systems before the contracts had even been signed.
The payment authorisations were made days before the financial year-end, June30, which this year fell on a Sunday.
Documents in possession of the Daily Dispatch reveal that acting director of community services Dr Mkhululi Nkohla authorised cheque requisitions to three companies – Lugogwana Comtech (R3.02-million); Empire Technology (R6.8-million) and LC3 Solutions (R1.7-million) three days before the directors of the companies signed contracts with the metro.
BCM municipal manager Andile Fani signed letters of appointment for Lugogwana Comtech and LC3 Solutions on Friday June28, the last working day before the financial reporting period’s close, and for Empire Technology on June26.
Both Lugogwana Comtech and LC3 Solutions are based in East London while Empire Technology, also known as Empire Praxis Joint Venture, is based in Johannesburg.
This was subject to the companies’ directors accepting the terms and conditions of the contracts.
The contracts were:
The deal saw a R3.02-million cheque requisition authorised to pay Lugogwana Comtech three days before the company’s managing director Khanyisa Lugogwana signed the deal.
Documents in possession of the Dispatch show that Lugogwana invoiced the metro the same day she entered into the contract;
However, a BCM official requested a R6.8-million cheque to be paid to Yuri Mohan, listed as a manager of Empire Technology, three days before Mohan signed the contract.
Mohan submitted an invoice to the metro three days after the cheque payment had been requested; and
The company’s Ntombizakhe Madala was informed she had been successful in her bid on June28, and a cheque for R1.559-million was authorised on the same day.
This was three days before Madala had signed the deal to provide the software to the metro.
Lugogwana confirmed that the system she was contracted to install had yet to kick in due to the complexity of the process, while Mohan said his would be operational in January next year.
BCM spokesman Keith Ngesi denied that the procurement process had been flouted. (See sidebar report for BCM’s full response).
Mohan and Lugogwana declined to discuss the terms of their contracts, saying only that before one undertook any software related work, the city had to pay for licensing.
Madala could not be contacted for comment. — zineg@dispatch.co.za
Would you like to comment on this article?
Register (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Trending Now
Latest Videos