Gauteng MEC for Infrastructure Development, Ms Nandi Mayathula-Khoza, is set to take action to set aside an R88.8 million departmental contract concluded in December last year with a construction company through a flawed appointment process.
In a joint statement issued by MEC Mayathula-Khoza and MEC for Roads and Transport, Mr Ismail Vadi, they said that the tender awarded by the Department of Infrastructure Development (DID) to demolish and construct new offices for the Transport Operating Licensing and Administration Board (TOLAB) in Tshwane was found to be inconsistent with the procurement policies of government as stipulated in the Constitution, the Public Finance Management Act (PFMA) and Treasury Regulations. The TOLAB is run by the Department of Roads and Transport.
Both MECs have agreed that corrective action must be taken after receiving a forensic investigation report that was commissioned in August this year by the Gauteng Provincial Treasury.
Earlier officials from the Department of Roads and Transport made written submissions alleging that supply chain management procedures were not being adhered to during the bid evaluation process. Vadi reported the matter in terms of the PFMA, which prompted the independent investigation by the Gauteng Treasury.
The investigation found that the time allocated for both the technical and bid evaluations was so limited that it compromised the process to an extent that it cannot be said to be fair and transparent. It concluded that the minutes and the evaluation report of the Bid Evaluation Committee (BEC) were not confirmed by members of the committee before they were submitted to the Departmental Acquisition Committee (DAC) for a final award decision.
The forensic report recommends that the government commences with legal action to set aside the tender awarded to the construction company; disciplinary action be instituted against officials identified in the report; the departments assist the SAPS in their investigations into the matter; and that tender processes should in future be properly planned, with adequate time allocated for advertisement, evaluation, adjudication and awarding of the tender. It also pointed out that there was a need for greater clarity on certain aspects of the procurement policies to be followed within the DID.
Mayathula-Khoza said that her department will act on these recommendations and institute the necessary corrective measures.
Both MECs thanked the departmental officials for reporting the matter and for co-operating fully with the investigation.
Enquiries:
Athi Geleba
Cell: 082 2999 010
E-mail: athi.geleba@gauteng.gov.za
