Buffalo City Metro boss Andile Fani is accused of seeking to influence the awarding of a lucrative contract after he allegedly instructed senior officials to remove a tender box.
The box was said to have held bids for a roads maintenance project believed to be valued at R100 million.
BCM boss Andile Fani
It is claimed that Fani communicated this in a top management meeting last week in his 10th floor boardroom at Trust Centre.
He ordered the box to be removed from the institution’s supply chain management unit in Chiselhurst.
Three senior officials – chief financial officer Vincent Pillay, acting head of health and public safety Steve Terwin and acting head of corporate services Louis Wulff – acted on the instruction.
The tender, known in tender business circles as Contract 26, is BCM’s multimillion rand tri-annual roads and stormwater drainage contract worth more than R100-million a year.
Fani’s motives for wanting the box moved are being questioned as it could be seen as interference in the tendering process.
BCM’s spokesman Keith Ngesi, on behalf of Fani, denied any impropriety, saying Fani came under pressure over numerous complaints about “internal weaknesses” around the tender and he used the powers conferred on him by the Municipal Finance Management Act to step in and bring order to the chaos.
Ngesi said no verbal instruction had been given to the three officials to remove the box.
A source within BCM close to the developments but not allowed to speak to the media, was adamant Fani had issued the instruction which shocked many senior managers at the meeting.
“The tender box that was to be removed from the SCM building had the most expensive and sought-after tenders. The reason Fani decided to call for its removal is not known,” said the source.
The source further said this had never happened at BCM before.
“Protecting tender boxes is one of the key things for any government institution, particularly the municipality. You don’t tamper with the tender box,” said the source.
Contacted for comment, all three senior officials refused to speak to the Dispatch.
One however, confirmed the instruction.
“I was at that meeting and an instruction came, but BCM will have a response on that,” said Wulff.
Terwin and Pillay said they were not mandated to speak to the media. “Communication department is handling this,” said Terwin.
Ngesi yesterday expressed shocked that members of senior management could misrepresent the contents of the meeting with the aim of misleading the public.
“A task was assigned to three managers to assess the situation and implement remedial actions.
“On inspection by the three tasked by the accounting officer, (Fani) the keys of the box were found to be defective and an additional lock was installed. No keys were confiscated by the CFO,” said Ngesi.
“Numerous complaints have been brought to the attention of the accounting officer (Fani) regarding internal control weaknesses in the SCM unit.
“This has exposed the metro to high risk of irregular expenditure, fraud and corruption as a result of the current state of chaotic document management practices in the unit,” said Ngesi.
The tender is for road construction like building bridges, stormwater drains, sidewalks, guardrails and culverts. It closed on Tuesday March 31. Two days later, the three managers were seen at SCM but apparently the tender bids were locked in another room.
Another source said Pillay allowed this to happen because “he was controlled”.
“He’s so controlled and he allowed this to happen because he has no choice. If you are told to jump at this municipality, you jump.”
Ngesi said: “The accounting officer, (Fani) is responsible and accountable for managing the financial administration of the municipality.
“For this purpose, he takes all reasonable steps to ensure that unauthorised, irregular or fruitless and wasteful expenditure are prevented.”
Ngesi said there were more changes to be effected at SCM.
“Some of these changes will bring discomfort to some people, but the accounting officer has an obligation to apply the law.” — bonganif@dispatch.
Row over R100m tender box order
Buffalo City Metro boss Andile Fani is accused of seeking to influence the awarding of a lucrative contract after he allegedly instructed senior officials to remove a tender box.
The box was said to have held bids for a roads maintenance project believed to be valued at R100 million.
BCM boss Andile Fani
It is claimed that Fani communicated this in a top management meeting last week in his 10th floor boardroom at Trust Centre.
He ordered the box to be removed from the institution’s supply chain management unit in Chiselhurst.
Three senior officials – chief financial officer Vincent Pillay, acting head of health and public safety Steve Terwin and acting head of corporate services Louis Wulff – acted on the instruction.
The tender, known in tender business circles as Contract 26, is BCM’s multimillion rand tri-annual roads and stormwater drainage contract worth more than R100-million a year.
Fani’s motives for wanting the box moved are being questioned as it could be seen as interference in the tendering process.
BCM’s spokesman Keith Ngesi, on behalf of Fani, denied any impropriety, saying Fani came under pressure over numerous complaints about “internal weaknesses” around the tender and he used the powers conferred on him by the Municipal Finance Management Act to step in and bring order to the chaos.
Ngesi said no verbal instruction had been given to the three officials to remove the box.
A source within BCM close to the developments but not allowed to speak to the media, was adamant Fani had issued the instruction which shocked many senior managers at the meeting.
“The tender box that was to be removed from the SCM building had the most expensive and sought-after tenders. The reason Fani decided to call for its removal is not known,” said the source.
The source further said this had never happened at BCM before.
“Protecting tender boxes is one of the key things for any government institution, particularly the municipality. You don’t tamper with the tender box,” said the source.
Contacted for comment, all three senior officials refused to speak to the Dispatch.
One however, confirmed the instruction.
“I was at that meeting and an instruction came, but BCM will have a response on that,” said Wulff.
Terwin and Pillay said they were not mandated to speak to the media. “Communication department is handling this,” said Terwin.
Ngesi yesterday expressed shocked that members of senior management could misrepresent the contents of the meeting with the aim of misleading the public.
“A task was assigned to three managers to assess the situation and implement remedial actions.
“On inspection by the three tasked by the accounting officer, (Fani) the keys of the box were found to be defective and an additional lock was installed. No keys were confiscated by the CFO,” said Ngesi.
“Numerous complaints have been brought to the attention of the accounting officer (Fani) regarding internal control weaknesses in the SCM unit.
“This has exposed the metro to high risk of irregular expenditure, fraud and corruption as a result of the current state of chaotic document management practices in the unit,” said Ngesi.
The tender is for road construction like building bridges, stormwater drains, sidewalks, guardrails and culverts. It closed on Tuesday March 31. Two days later, the three managers were seen at SCM but apparently the tender bids were locked in another room.
Another source said Pillay allowed this to happen because “he was controlled”.
“He’s so controlled and he allowed this to happen because he has no choice. If you are told to jump at this municipality, you jump.”
Ngesi said: “The accounting officer, (Fani) is responsible and accountable for managing the financial administration of the municipality.
“For this purpose, he takes all reasonable steps to ensure that unauthorised, irregular or fruitless and wasteful expenditure are prevented.”
Ngesi said there were more changes to be effected at SCM.
“Some of these changes will bring discomfort to some people, but the accounting officer has an obligation to apply the law.” — bonganif@dispatch.
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