A war over a lucrative food tender has erupted at the Bhisho Legislature.
At the centre of the feud is a multimillionrand catering contract between the winning bidder and the losing companies.
The three-year tender was advertised in March and was finally awarded in June to Above and Beyond Trading.
The company, which is owned by businesswoman Viwe Vazi, has had the contract since 2015. The new contract was awarded to her, following which her company started serving meals in July. However, Vazi is yet to sign the service level agreement (SLA).
The contract is for the provision of breakfast and lunch on a daily basis at the legislature’s canteen and for catering during functions and events. The functions include committee meetings.
The Daily Dispatch understands that in previous years, service providers would charge R38 per plate for 200 people regardless of whether or not everyone ate. The service providers would then also invoice the legislature for catering-in functions.
Breakfast usually includes cereal, coffee, sandwich and scones. The menu for lunch ranges from samp with beans, rice, veggies and meat. A rough calculation for charging R38 per plate for 200 people per day adds up to about R167,200 a month. Over a three-year period, that total adds up to just over R6m.
Previously, the legislature would pay a set rate of 200 plates a day even if the canteen did not serve that number of meals.
It has now emerged that the winning bidder, Above and Beyond Trading, is apparently rendering services even though Vazi has not yet signed the (SLA).
It is understood that the new agreement orders Vazi to invoice per plate served – and not the standard 200 plates per day.
Legislature insiders have told the Daily Dispatch that her invoices for the services provided in July are R72,000 for breakfast, R170,000 for lunch and R85,000 for functions. The Dispatch has also learnt that these invoices have not been paid as there is no SLA signed. Now irate service providers, who also submitted bids for the tender, have written to the legislature to voice their concern over the continued use of Above and Beyond. The group is also threatening legal action.
They argue that the second-best bidder should instead be awarded the work if Vazi is not willing to sign the SLA.
The letter, seen by the Daily Dispatch, is signed by seven service providers that were part of the companies vying for the tender.
In the letter, the companies express their frustration over the continued preference of Above and Beyond and also urge the legislature to consider one of them to replace Vazi’s company. “We are also aware that since award [sic] the company awarded has not signed and refuses to sign the SLA with the institution. We think as procedure the legislature’s next step would be to source an alternative service provider from the list of company’s that submitted proposals,” part of the letter reads.
The companies say it would not be proper procurement practice if the contract goes out to tender again without the legislature considering the other bidders.
“It is public knowledge within the industry that the kitchen workers have indulged in numerous mass actions against Above and Beyond Trading, but this company continues to provide services outside of contract, for the Legislature,” the letter reads.
Bhisho legislature spokesperson Maria Ephy Hermans confirmed to the Dispatch that Vazi had not yet signed the SLA.
“SLA has not yet been signed as it is still being negotiated on by both legal parties. Reasons cannot be disclosed as this is a matter between the two parties,” Hermans said.
Asked how Vazi is operating without any agreement signed, Hermans said legislature policy provided that there must be a signed SLA before commencement of any contract and the “SLA is still being negotiated”.
Vazi said that she was unable to comment as the matter was between her as the service provider and the Legislature...