PPADB delists SPEDU dispute contractor
The Public Procurement and Asset Disposal Board (PPADB) has deregistered Marcian Concepts from public procurement, after ruling that the contractor was guilty of “fraudulent, illegitimate and improper” registration.
The decision means all procuring entities in government are not allowed to engage Marcian Concepts. Additionally, the contractor’s key personnel are not allowed to join another contractor and if they do, that contractor will be barred from getting new tenders. Marcian Concepts is also barred from registering a new company.
Marcian Concepts hit headlines earlier this year when it secured a High Court award of P31.8 million in its contract dispute with SPEDU over a works contract in Selebi-Phikwe. The contract entailed the provision of designs of infrastructure, construction of road works, storm water drains, water reticulation, sewer pump stations, power reticulation, street lighting and telecommunications. The land servicing contract, awarded in June 2020, was suspended by the Ministry of Land Management, Water and Sanitation in September 2020, while irregularities in the award were investigated. SPEDU previously said the suspension meant 29 companies with the potential of employing 7,000 workers, had been kept waiting. “The Board having considered all relevant factors, including its statutory mandate to ensure the integrity and public confidence in the procurement process, resolved to permanently delist and/or remove Marcian Concepts from the contractor registration system with immediate effect,” the PPADB said in a statement this week.
The PPADB said Marcian Concept’s registration was void “ab initio” meaning the registration was incorrect from the beginning. Information gathered by Mmegi this week indicates that after its victory at the High Court, Marcian Concepts also secured an order to attach SPEDU’s property in pursuit of the P31.8 million judgment on March 12 this year.
The Ministry of Investment, Trade and Industry paid Marcian Concepts the funds on April 16, but investigators from the Directorate on Corruption and Economic Crime launched a case at the High Court to seize the funds, alleging that the contract was irregularly awarded and the funds were therefore potentially proceeds of crime.
The case continues before Justice Tshegofatso Mogomotsi, with both sides having filed affidavits. Yesterday, Marcian Concepts lawyer, Unoda Mack, told Mmegi he was unaware of the delisting by the PPADB.
“I have no idea about that and I’m hearing it from you,” he said.
“As far as I know, the case has not been finalised. There was an application for forfeiture which the State was supposed to make but I’m not certain that has happened,” he said. Mack declined to further discuss the matter saying it was still before the courts.