Blouberg Municipality wastes more than R20 million in tender irregularities

The DA has filed a complaint with the Office of the Public Protector after the 4th Quarterly Report released in June 2017 revealed that Blouberg Municipality has wasted more than R20 million in tender irregularities.

More than ten tenders were awarded to various service providers without complying with Section 32 of the Municipal Finance Management Act (MFMA).

This Act clearly indicates that the accounting officer is allowed to procure goods or services for the municipality under a contract secured by another organ of the state (government department or municipality), but only if the contracts were secured by means of a competitive bidding process applicable to that organ of state.

Some tenders were awarded without being advertised in various newspapers, on municipal notice boards and websites to invite more service providers to submit their proposals.

The municipality has awarded a R5 million tender to Rekhuditse Construction and Cleaning for storm water and internal streets in Indermark Village. Another R5 million tender was awarded to Bagaphala Projects Trading for storm water and internal streets in Avon. Both tenders were awarded without following the correct procedures.

The following tenders were awarded without being advertised or with false documentation:

• Kwenamole and Associate: R184 000;
• Kgolo Institutes: R270 000;
• Limpopo Advertising: R91 000;
• Magolego Attorneys: R248 000; and
• Machaneng Contracts: R98 000.

The Municipal Public Accounts Committee (MPAC) has rightfully recommended that officials responsible for awarding these tenders be investigated.

According to the report, Machaneng Contracts misled the municipality by submitting false documentation when rendering the service and the committee has recommended that the company should be penalized for rendering any kind of services in the municipality.

The committee also recommended that officials responsible for awarding these tenders be investigated and these service providers not to be awarded any business opportunity with the municipality until investigations are completed.

The following companies were awarded tenders without receiving an order from the municipality:

• MJ Gateway: R4 725 for accommodating councilors for policy review session; and
• K2016083455: R 7 000 for buying cattle for a funeral.

Another company, Engineerex Consulting, was awarded a R7 million tender for the Alldays landfill site but the service provider was evaluated with the incorrect preferential point system.

An amount of R4 700 was further paid to Image Factor for a photo shoot session during a graduation ceremony without having any contract with the municipality. The Committee has recommended that an official should pay back the money that was paid to Image Factor, and a proof of payment be submitted to the upcoming ordinary Council meeting at the end of October 2017.

All these tender irregularities will contribute towards irregular, unauthorized , fruitless and wasteful expenditure in the 2017/2018 financial year.

It is clear that looting and the benefitting of cronies is in full swing in this ANC-led municipality despite a huge service delivery backlog. Public funds, meant to provide quality services to the poor, are being squandered by the ANC in every possible way.

The DA urges the municipality to implement MPAC’s recommendations to recoup the taxpayers’ money and establish investigations into these tender irregularities and hold officials implicated accountable before the Council meeting in October 2017.

Source: Media Enquiries
Minkie Tjumana
DA Caucus Leader – Blouberg Local Municipality