Questions on tenders link to BCM boss

Fraud case over Andile Fani’s qualification in court today.

THE educational institution that awarded Buffalo City Metro manager Andile Fani a certificate in municipal financial management has been given informal tenders of almost R500000 by the metro.

Kgolo Institute’s director, Mothabela Kgolo Ephraim Makgato, faces a charge of fraud with Fani in the East London Regional Court over the certificate, which was issued in 2012.

It has now emerged that Kgolo received three tenders totalling R485000 between last November and May.

A schedule of informal tenders published by BCM lists the following awards to Kgolo:

  • R195000 on November 12 2012 for a team-building workshop;

  • R119000 on November 26 2012 for business management training; and
    • R171000 on May 2 2013 for tender advice training services.
    • In all three awards, Kgolo is listed on the BCM schedule – presented to councillors – as the sole bidder.

      However, the list of informal tender responses on BCM’s website shows that in all three tenders Kgolo faced competitive bids from other service providers. It is not clear what criteria BCM uses that would have flagged other bidders as non-responsive.

      BCM spokesman Keith Ngesi initially denied that BCM had any contractual business with Kgolo, saying the idea was “laughable”. He said employees or councillors who contracted to do training with Kgolo did so freely and “without coercion”.

      According to the council’s website list of informal tenders, Kgolo submitted a R785460 bid for the development of a change management strategy.

      There were also bids for corporate governance and customer care training, as well as for training of councillors in protocol, etiquette and international relations. It does not appear to have been successful in these bids.

      After obtaining further information, Ngesi said the tenders for tender advice training and business management training were awarded to Kgolo because of the company’s experience, previous clients, stakeholders, proposal and understanding of the brief.

      The team-building tender was because it was the lowest; the only other bid was above the threshold.

      Attempts to get comment from Makgato yesterday were unsuccessful.

      Kgolo’s website has a special invitation to public servants to get its certificate in municipal financial management, at a programme cost of R45600.

      A receptionist who answered the institute’s telephone confirmed that Kgolo provided services to BCM.

      “We have a connection,” she said.

      Makgato is in court again today. His case was postponed earlier this month.

      Fani has been charged with him but his appearance is on hold pending the finalisation of representations to the National Prosecuting Authority by his attorney. The charge relates to Fani’s submission of allegedly false educational qualifications when he applied for the top job in the metro in 2011.

      He allegedly claimed in his CV that he held a certificate in municipal financial management from Fort Hare at the time of his appointment process in 2011, although he had not included the certificate in his application.

      Later, he allegedly submitted a certificate from the Kgolo Institute to the interview panel, but the charge sheet states he only effectively qualified a year later for the Kgolo certificate.

      Based on the charge sheet, it appears Fani stopped his studies at Fort Hare because of financial difficulties – but it is not clear if these were his own or the university’s.

      The municipal manager position requires a degree or a certificate in municipal financial management, equivalent to a National Qualifications Framework (NQF) level 6 qualification.

      Fani’s employment could be nullified if he is found to lack the prescribed qualification and the metro may be entitled to sue him for recovery of his R1.33-million annual salary to date.

      Asked if the Kgolo contracts were not inappropriate given the legal process which has enveloped Fani and Makgato, Ngesi said Kgolo was entitled to do business with anyone. — rayh@dispatch.co.za

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