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A forensic audit investigation found that Hesh Tag  Imvume (Pty) Ltd did not submit important documents such as a tax compliance status pin, a BBB-EE certificate, a  Private Security Industry Regulatory Authority (PSIRA) certificate and accompanying firearm documents.

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Sizwe sama Yende

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Three years after a contract of a security company had expired, municipal officials in a Mpumalanga council prolonged it indefinitely and continued paying monthly rates that have accrued to R131.6 million.

For a long time, leaders of the ANC-led Govan Mbeki Local Municipality in Secunda thought they were carrying out a clean heist until fed-up ANC members and the opposition spoke out – prompting the provincial government to commission a forensic investigation that opened a can of worms.

Even after a forensic audit report by Motlatsiseleke Incorporated in 2020 had found that Hesh Tag Imvume (Pty) Ltd should not have been appointed due to glaring failures to meet bid requirements, the new administration that took over in 2021, after the local government elections, ignored recommendations to correct the damage. 

Last week, the DA approached Mayor Nhlakanipho Zuma to investigate whether municipal manager, Elliot Maseko, took all reasonable steps to prevent irregular, unauthorised, fruitless, and wasteful expenditure, and any other losses.

DA councillor, Lehlohonolo Madumise, said the council resolved last October that the contract must be terminated, and a new tender be advertised to appoint a legally compliant security company.

“It is completely illogical that for more than two years now, the municipality failed to appoint a company on a long-term basis. Having noted the negligence and the alleged intentional nature of this matter, the DA demands that the executive mayor institute an investigation,” Madumise said.

Since Hesh Tag’s contract expired in 2022, it has amassed R131 622 972.52 – due to officials and politicians snubbing dissenting voices including recommendations of the forensic investigation commissioned by the Mpumalanga Department of Co-operative Governance and Traditional Affairs.

The Govan Mbeki council is still deliberating the matter after all these years, according to spokesperson, Lucky Mhlongo.

“The council resolved during its ordinary sitting on April 23 to allow management to prepare a detailed progress report regarding the security tender. The item will be discussed in the next full sitting of the council meeting,” Mhlongo said.

The People’s Eye has obtained the forensic report, which paints a picture of nonchalant senior managers and politicians about the illegal contract. This has prompted critics to allege that they had something to gain for keeping Hesh Tag on the payroll.  

The investigation found that Hesh Tag did not submit important documents such as a tax compliance status pin and BBB-EE certificate. It also did not submit a Private Security Industry Regulatory Authority (PSIRA) certificate and accompanying firearm documents.

Has Tag submitted an incomplete tender document, the investigators found, with blank pages where it had to provide details about its past and current experience in the security job it bid for.

“We can confirm that the bid evaluation committee should have excluded Hash Tag from the bid evaluation committee and the adjudication process because of non-compliance with requirements and conditions as set out in the tender invitation and the tender document,” reads the Motlatsiseleke Incorporated report.

The report further recommended that disciplinary action be taken against chairperson of the evaluation and bid committees.

Former ANC councillor, Nick Mathabe, who was interviewed when Motlatsiseleke Incorporated investigated the municpality referred the matter to his lawyers in January this year.

Nkosi SS Attorneys have since written to Cogta minister, Velenkosi Hlabisa, to investigate the matter.

 The lawyers have warned that the municipal officials were in violation of the Municipal Finance Management Act and would be liable to reimburse the council themselves.

They have also alerted Maseko to a Nelson Mandela Bay Metro case where the Eastern Cape Division of the High Court in Gqeberha and later the Supreme Court of Appeal in Bloemfontein ordered that municipal officials who participated in the appointment of a communications and marketing strategy consulting company without following tender procedures to pay back from their own pockets R7.7 million that was paid to the service provider.

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