Mopani awards R46 million tenders to a bogus company

The DA has filed a complaint with the Office of the Public Protector to probe Mopani District Municipality (MDM) after awarding two tenders to the tune of over R46 million to a bogus company which was struck off the register by the then CIPRO, now CIPC, on 19 October 2010.

The DA can confirm that this Closed Corporation, Koephu Business Enterprise, was awarded a tender worth R33 million for the rehabilitation of bulkline and another tender worth R13 million to construct Sefofotse to Ditshosine Bulk Water Supply/Remahlatsi Bulk Ad Reticulation Phase 1B, despite being deregistered.

According to the company’s website, (http://www.koephu.com/index.php), the company was established in the year 2004 (CK Number: 2004/013500/23) with the idea of developing communities through quality services delivery.

The DA has noted the following on the CIPRO’s website:
The DA’s biggest concern is, how can the municipality allocate two such huge projects to a bogus company that doesn’t exist?

Notwithstanding the fact that the municipality must follow the Supply Chain Management (SCM) process, the Municipal Manager as the accounting officer continues to use regulation 32 as a loophole and short cut to loot the public coffers.

The SCM process is designed to combat corruption and mismanagement therefore bypassing all the treasury regulations with such huge contracts creates an impression that corruption and possibly fraud is committed.

The DA urges the Public Protector to probe this matter and ensure that the money is returned to the municipal coffers and further hold the accounting officer accountable.

The time for Total Change is now as our communities deserve a corruption free government that serves the interest of the people and not abuse the system to enrich close friends and comrades.

Media Enquiries
Marie Helm
DA Caucus Leader – Mopani District Municipality
082 683 2835