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Mabotwane Security Services is not tax compliant on the CSD (central supplier database). The bidder should be given seven days to sort out their tax matters with SARS. – Bid Adjudication Committee minutes

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Sizwe sama Yende

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In a typical case of favouritism, City of Polokwane officials have appointed three security companies that did not have their tax issues to enable them to have a slice of R556 million of the security budget in the next three years.

According to internal bid documents that The People’s Eye has seen, the three companies – Zack Business Enterprises, Mabotwane Security Services and Mamatyila Trading Enterprise – clearly needed to sort out certain matters with South African Revenue Services (SARS).

The bid adjudication committee however gave them a leeway of seven days to rectify these matters with the taxman. City of Polokwane manager, Thuso Remugoni, condoned these companies’ weaknesses by approving their bids and affirming that she concurred with the committee’s decision.

The bid adjudication committee’s minutes dated March 26 2024 and signed off by chairperson and chief finance officer, Thabo Nonyane, indicate that Zack Business Enterprises was appointed to provide static security city cluster sites.

Remugoni signed off the bid awards on April 8.

Mabotwane and Mamatyila would be responsible for Seshego Aganang clusters. The minutes read: “Mabotwane Security Services is not tax compliant on the CSD (central supplier database). The bidder should be given seven days to sort out their tax matters with SARS.”

They read the same concerning Zack Business Enterprises. Zack is set to earn R5.3 million a month for supplying 229 guards on site. This will accumulate to R190.8 million at the end of the contract in three years.

Mabotwane and Mamatyila will make R3.9 million a month for 168 guards and, in three years, make R140.4 million.

City of Polokwane spokesperson, Thipa Selala, did not respond to written questions sent to him on September 17.

Disgruntled security companies who bid for the jobs have intimated to The People’s Eye that they were contemplating taking the municipality to court.

They are also concerned about the validity period of the tender.

Mabotwane Security Services is accused of benefiting unfairly in the City of Polokwane but is a complainant in the Sekhukhune District Municipality about the awarding of security tenders where it also bid.

Mabotwane is among two companies - Brown Dogs Security cc, and Letona 6 Security (PTY) LTD – that have approached the Polokwane High Court about the awarding of security tenders worth R270 million.

They argue that the municipality was wrong in awarding security tenders for four clusters to one company, TSS Security Services, in June 2023.

The three companies argued that according to the specification contained in the tender document, the municipality was required to appoint one security service per cluster.

Acting High Court Judge, Malose Monene, has ruled that the decision by the municipality to award the tender to TSS be declared constitutionally invalid, reviewed, and set aside.

“The decision by the acting municipal manager to appoint one bidder for all four clusters contravenes the terms of the tender. Both the bid evaluation and bid adjudication committee understood these empowering provisions to mean that although the bidders could bid for all four clusters, no bidder could be awarded more than one cluster,” said the judge.