Sizwe sama Yende
City of Polokwane mayor, John Mpe, has been told to approach the court to review and set aside the awarding of security tenders worth R556 million.
The process was riddled with irregularities whereby officials awarded contracts to companies with no tax clearance certificates and gave them leeway to sort out the matters.
Open Dialogue on Corruption in Southern Africa (ODCiSA) chairperson, Norman Mavhunga, told Mpe in writing this week that the successful security service providers should have not been passed to further stages of the bidding process owing to their non-compliance with administrative requirements.
“Beyond the above-mentioned irregularities, we want to bring it to your attention that certain aspects of the successful security service bidding companies are suspicious of prevailing fraudulent disclosures or misrepresentation of facts, which warrants specific attention in line with the prescripts identified above,” Mavhunga said.
He said that an independent investigation on all officials who participated in the bidding process should be conducted.
“It is recommended that a judicial self-review of a decision to appoint the security service providers in the bids stated above be made and their services be terminated,” Mavhunga said.
Mavhunga added that the municipality should approach the relevant
state agencies and report these allegations.
City of Polokwane spokesperson, Thipa Selala, did not respond to written questions.
The People’s Eye reported last week that documents showed that three companies – Zack Business Enterprises, Mabotwane Security Services and Mamatyila Trading Enterprise –needed to sort out certain matters with the South African Revenue Services (SARS).
However, municipal manager, Thuso Remugoni, condoned these companies’ non-compliance by approving their bids and affirming that she concurred with the committee’s decision to let them off the hook for not having their tax matters in order.
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.”
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.
Some of the disgruntled security companies taken the municipality to court review and set aside the tenders.
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.