R17m tender probe hits a snag

INVESTIGATORS are battling to get the information they need for a probe into the awarding of Buffalo City Metro’s multimillion-rand tender to supply black bag contract.

The R17-million tender to supply refuse bags was awarded to a local company last June but Councillors raised concerns on the process fol lowed.

In a report to council by executive mayor Zukiswa Ncitha, it was revealed that investigators MMB Consulting were struggling to get documents from uncooperative the metro officials.

The three-year contract was award ed to Masiqhame Trading, wholly a company 100% owned by Cuan Surren Metune, the 27-year-old son of a former BCM employee and Holy Spirit Fire Church’s pastor Fabian Metune.

Late last year the Daily Dispatch reported that all on exactly the same day, June 29 2012, an order for bags worth nearly R1.1-million was made, invoices amounting to just over R1-million were submitted and payments made were all done.

To add to the controversy, this was six days before the supplier had signed a letter accepting the job.

The contract was awarded on June 1, and city boss Andile Fani wrote to Masiqhame on June 6 informing Metune that his company had won the contract. On July5, a month later, the firm signed a letter of acceptance. The project has since stalled.

A confidential report tabled in a council meeting late last year further showed that Masiqhame received payments from the metro almost every week, from March 8 last year, al though it only accepted the terms of the contract in July.

The report revealed that weekly payments of between R6125 and R59036 were made, with one of the biggest payments on June 28 when BCM paid R108680 into the company’s account.

A day later, on June 29, an official order to supply 11336 packs at a cost of almost R1.1-million was issued by BCM.

Masiqhame later submitted six in voices of R183333 each, totalling R1099998, and payment for these were allegedly made on the same day.

Thise payments on June 29 totaling R1.09-million were was made six days before the sup plier signed a letter of acceptance for the job, which was signed on July 5.

The council report revealed that be tween March 8 and 22 2012, last year, the metro paid Masiqhame R102554; between April 2 and 24 another R126660.

Between May 10 and 30 a further R141173 was paid and the company received a total of R164952 in cheques on June 21 and 28.

The confidential council report re vealed that a “stop gap mechanism” had been requested in March last year, whereby an informal tender pro cess was used to continue procuring refuse bags until a new tender had been awarded.

Some of the payments made to Masiqhame were authorised by BCM’s supply chain management’s general manager Tembelani Sali, allegedly without Fani’s approval.

After council had tasked Ncitha to investigate the contract last October, the executive mayor wrote to Fani in February introducing the investigating company and urging for “maximum co-operation” from city officials.

In a letter dated March 6 2013, Ncitha asks Fani to ensure that the investigating company was furnished with all the necessary documentation.

“All documents in relation to the specifications, evaluation, adjudication and approval of a formal tender for the supply of refuse bags, must be made available to investigators.

“Please ensure that these documents are provided as a matter of urgency as the service provider depends on their availability to proceed with their work,” wrote Ncitha.

A few days later on March 12, a meeting between Ncitha, the investigating team and metro senior officials to facilitate documentation access was held.

However, that proved fruitless too, as a confidential report submitted by Ncitha in council last month reveals that investigations were stifled by lack of information.

“The investigators have revealed that they were still battling to access crucial information from the institution and that was hampering the progress of the investigation,” Ncitha wrote.

BCM’s head of communications and international relations Ondela Mah langu yesterday refused to comment on the matter, saying it was being dealt with by Ncitha’s office.

Ncitha and MMB Consulting asso ciate director Bongo Rulashe could not be reached for comment late yesterday. — asandan@dispatch.co.za

lSee Opinion, page 9

The investigators are expected to be paid R198000 for their work. They are also investigating another multimillion-rand housing project tender allegedly awarded by the metro without due processes being followed.

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