The Auditor-General in the Eastern Cape has questioned the validity of a tender “selection committee” at Buffalo City Metro that has awarded tenders worth millions to “companies of their choice”.
On Monday the Dispatch exposed how the select committee dished out tenders worth R276m to a number of companies selected from the metro’s database.
The selection committee, according to BCM, was meant to share work equally among a number of companies in their database.
The Dispatch reported that only four companies, who are known to the Dispatch, got R140m and the rest — another 41 companies — shared a similar amount, R136m.
In a letter to BCM dated the day after the Dispatch report, the AG’s Eastern Cape manager, Colleen Smith, requests the following information from BCM city manager Andile Sihlahla:
- Is it true that there is a selection committee and what is its purpose?
- What are the terms of reference for the committee, the composition of the committee and what is its role in the selection and allocation of suppliers?
- Provide all minutes of selection committee meetings as these are required to be presented for audit;
- Does the selection committee negate the responsibilities of the bid evaluation and bid adjudication?
- Are the awards considered by the selection committee included in the contract register?
The AG also wants the list of suppliers — the four who got the lion’s share as well as the others.
BCM executive mayor Xola Pakati apparently found the AG’s request entertaining.
Commenting on the ANC Dr Rubusana region’s WhatsApp group, he accused the AG of “gossip mongering”.
Pakati wrote: “It is so interesting to see the AG engaged in gossip mongering, I’m taken aback. We are now likely to be called upon to respond to every newspaper article, so the journalist set the agenda for the AG. I’m amused,” said Pakati.
When the Dispatch asked Pakati about his comments, he said: “I’m really amused because we have a direct relationship with them and we expected that internal protocol could be followed by them.
“Of course we will respond to all the questions they have raised but this has nothing to do with the audit report. Their agenda has been set by the journalist who wrote the story. We will meet the deadline.”
The letter gave BCM until the close of business on Friday to provide the information. “Should any information requested not be received within the agreed timeline and should we not be able to obtain sufficient appropriate audit evidence by alternative procedures, this omission will be considered to be a limitation of scope on the audit of procurement and contract management,” it said.
AGSA spokesperson Africa Boso would not comment.
“As you will be aware, our mandate is to comment on matters we have audited and reported on. As the AGSA has not audited the matter you are inquiring on, the municipality would be best suited to deal with your inquiry,” said Boso.
BCM spokesperson Samkelo Ngwenya confirmed the city was in possession of the letter. He said a response would be provided to the AG’s office by deadline.
The Dispatch team has seen a draft BCM document addressed to Sihlahla stating that the committee will run for three years.
BCM councillors were unhappy with this and called for a legal opinion.
Law firm Makhanya Attorneys was appointed and in their opinion, presented to council on Wednesday, Makhanya said: “The establishment of the selections committee is a mere mechanism to ensure equitable distribution of work to rotate work among contractors, already procured by a competitive bidding process.
“If this is a correct version, I would find nothing unlawful about such a committee.
“However, if this version is not correct, and if the selections committee does evaluations as set out in the last clause of the terms of reference, then it falls foul of regulation 26 of the SCM regulations and thus it is unlawful.”
In the council meeting, ANC chief whip Mawethu Marata said there were gaps in the report.
“I note the report but we have browsed it and picked up a few gaps. We want to know if the committee is the city manager’s committee or that of council.
“We need details about the function of the committee. We propose that the mayor goes back to the service provider and fill the gaps and come back with the report in the next council meeting.”
The council agreed.
Auditor-General questions validity of BCM tender committee
Image: File
The Auditor-General in the Eastern Cape has questioned the validity of a tender “selection committee” at Buffalo City Metro that has awarded tenders worth millions to “companies of their choice”.
On Monday the Dispatch exposed how the select committee dished out tenders worth R276m to a number of companies selected from the metro’s database.
The selection committee, according to BCM, was meant to share work equally among a number of companies in their database.
The Dispatch reported that only four companies, who are known to the Dispatch, got R140m and the rest — another 41 companies — shared a similar amount, R136m.
In a letter to BCM dated the day after the Dispatch report, the AG’s Eastern Cape manager, Colleen Smith, requests the following information from BCM city manager Andile Sihlahla:
The AG also wants the list of suppliers — the four who got the lion’s share as well as the others.
BCM executive mayor Xola Pakati apparently found the AG’s request entertaining.
Commenting on the ANC Dr Rubusana region’s WhatsApp group, he accused the AG of “gossip mongering”.
Pakati wrote: “It is so interesting to see the AG engaged in gossip mongering, I’m taken aback. We are now likely to be called upon to respond to every newspaper article, so the journalist set the agenda for the AG. I’m amused,” said Pakati.
When the Dispatch asked Pakati about his comments, he said: “I’m really amused because we have a direct relationship with them and we expected that internal protocol could be followed by them.
“Of course we will respond to all the questions they have raised but this has nothing to do with the audit report. Their agenda has been set by the journalist who wrote the story. We will meet the deadline.”
The letter gave BCM until the close of business on Friday to provide the information. “Should any information requested not be received within the agreed timeline and should we not be able to obtain sufficient appropriate audit evidence by alternative procedures, this omission will be considered to be a limitation of scope on the audit of procurement and contract management,” it said.
AGSA spokesperson Africa Boso would not comment.
“As you will be aware, our mandate is to comment on matters we have audited and reported on. As the AGSA has not audited the matter you are inquiring on, the municipality would be best suited to deal with your inquiry,” said Boso.
BCM spokesperson Samkelo Ngwenya confirmed the city was in possession of the letter. He said a response would be provided to the AG’s office by deadline.
The Dispatch team has seen a draft BCM document addressed to Sihlahla stating that the committee will run for three years.
BCM councillors were unhappy with this and called for a legal opinion.
Law firm Makhanya Attorneys was appointed and in their opinion, presented to council on Wednesday, Makhanya said: “The establishment of the selections committee is a mere mechanism to ensure equitable distribution of work to rotate work among contractors, already procured by a competitive bidding process.
“If this is a correct version, I would find nothing unlawful about such a committee.
“However, if this version is not correct, and if the selections committee does evaluations as set out in the last clause of the terms of reference, then it falls foul of regulation 26 of the SCM regulations and thus it is unlawful.”
In the council meeting, ANC chief whip Mawethu Marata said there were gaps in the report.
“I note the report but we have browsed it and picked up a few gaps. We want to know if the committee is the city manager’s committee or that of council.
“We need details about the function of the committee. We propose that the mayor goes back to the service provider and fill the gaps and come back with the report in the next council meeting.”
The council agreed.
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