The Eastern Cape Rural Development Agency (ECRDA) bought R4.2-million worth of office furniture which is now sitting idle at its new Beacon Bay Crossing offices, nicknamed “Nkandla” by disgruntled staffers.
The procurement of new offices – at a rental of R9-million per year – and of the furniture has raised questions among insiders about wasteful expenditure, with a large space filled with upmarket furnishings that has remained unused for almost a year.
Both were allegedly procured without going to tender, but were awarded based only on requests for proposals, a claim denied by ECRDA spokeswoman NobaTembu Pako.
When the Daily Dispatch visited ECRDA’s offices in Beacon Bay, a large empty space with dozens of chairs, desks and other office equipment could be seen from the reception area behind a glass wall.
The office features two large, well-furnished boardrooms, their walls adorned with art by a well-known East London artist.
A source told the Dispatch: “The furniture was bought without following procurement processes and for no use by anyone in particular. It was procured from Cecil Nurse and Insight for R4.2-million. A request for a proposal supplies worth R4-million. has to go to tender.”
In addition, the agency has paid R9-million for offices that have not been used since the move to the new premises in June last year.
“We pay R9-million for rent to accommodate about 60 to 70 people. There are 138 in all, including those in branches,” the source said.
“There is plenty of unused space and that shows there was no need for it. The furniture is now sitting in that empty space unused. The staff has nicknamed ECRDA offices Nkandla.”
Pako admitted there was unoccupied space at the new office.
“The office space and furniture requirements cater for employees of the former Asgisa EC and EC Rural Finance Corporation (ECRFC), as well as subsidiary entities that are being integrated into the ECRDA.”
She said the process of integrating Asgisa EC and ECRFC resulted in “substantial cost savings to the provincial government”, including savings in office accommodation.
Pako said the R4.2-million furniture would be distributed to the agency’s East London and regional offices.
“The regional office furniture was in dire need of replacement because ECRFC furniture was last replaced 15 years ago. The majority of employees were incorporated from ECRFC.”
Pako said prospective suppliers were requested to submit proposals which included product specifications, lead times and prices and an advert for office space was published in the media in March last year.
The agency is not new to controversy; last year it controversially paid R4-million to board members for 70 board and special meetings. It is also responsible for managing the struggling Magwa and Majola Tea estate in Lusikisiki. — siyam@dispatch.co.za
East London has its own ‘Nkandla’
The procurement of new offices – at a rental of R9-million per year – and of the furniture has raised questions among insiders about wasteful expenditure, with a large space filled with upmarket furnishings that has remained unused for almost a year.
Both were allegedly procured without going to tender, but were awarded based only on requests for proposals, a claim denied by ECRDA spokeswoman NobaTembu Pako.
When the Daily Dispatch visited ECRDA’s offices in Beacon Bay, a large empty space with dozens of chairs, desks and other office equipment could be seen from the reception area behind a glass wall.
The office features two large, well-furnished boardrooms, their walls adorned with art by a well-known East London artist.
A source told the Dispatch: “The furniture was bought without following procurement processes and for no use by anyone in particular. It was procured from Cecil Nurse and Insight for R4.2-million. A request for a proposal supplies worth R4-million. has to go to tender.”
In addition, the agency has paid R9-million for offices that have not been used since the move to the new premises in June last year.
“We pay R9-million for rent to accommodate about 60 to 70 people. There are 138 in all, including those in branches,” the source said.
“There is plenty of unused space and that shows there was no need for it. The furniture is now sitting in that empty space unused. The staff has nicknamed ECRDA offices Nkandla.”
Pako admitted there was unoccupied space at the new office.
“The office space and furniture requirements cater for employees of the former Asgisa EC and EC Rural Finance Corporation (ECRFC), as well as subsidiary entities that are being integrated into the ECRDA.”
She said the process of integrating Asgisa EC and ECRFC resulted in “substantial cost savings to the provincial government”, including savings in office accommodation.
Pako said the R4.2-million furniture would be distributed to the agency’s East London and regional offices.
“The regional office furniture was in dire need of replacement because ECRFC furniture was last replaced 15 years ago. The majority of employees were incorporated from ECRFC.”
Pako said prospective suppliers were requested to submit proposals which included product specifications, lead times and prices and an advert for office space was published in the media in March last year.
The agency is not new to controversy; last year it controversially paid R4-million to board members for 70 board and special meetings. It is also responsible for managing the struggling Magwa and Majola Tea estate in Lusikisiki. — siyam@dispatch.co.za
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