Public Works to ban Sodi from State tenders
JOHANNESBURG - The Department of Public Works has become the second government entity to take legal steps to ban one of Edwin Sodi’s companies from doing business with the State.
The City of Tshwane last week wrote to the National Treasury to restrict Sodi and his companies – NJR Projects (which rebranded as G-5 Group) and Blackhead Consulting, which were part of a joint venture to upgrade the Rooiwal wastewater treatment plant. The request for ban was due to failure from poor performance.
Blacklist
Tshwane said it wanted the companies and their directors to be blacklisted for 10 years.
Spokesperson for the Department of Public Works, Lennox Mabaso, said they were now moving to ban several companies including G5-Group from doing business with the State.
He said department lawyers were in communication with lawyers representing the companies.
“We have moved to the process of restriction and communicated our intentions to restrict,” said Mabaso.
“As a department, we are moving in further stages of restricting the companies so that we can get recourse on the injustices we have suffered from these companies.
‘‘As expected, the companies are also exercising their rights within the laws of our country, but as a department we are not relenting.”
Last year, the department dumped Sodi’s G-5 Group, which was awarded a R282 million contract to upgrade and extend the 65-bed Parys prison in the Free State to a 240-bed facility. The company abandoned the project before it was completed.
Warned
Public Works Minister Sihle Zikalala warned construction companies and developers who abandon construction that they would be barred from doing business with the government.
Zikalala’s warning came during his tour of the incomplete Parys correctional facility, as well as Park Road police station in Bloemfontein.
Mabaso said the department had already recommended seven service providers to the Treasury for blacklisting for 10 years.
The companies are Magwa Construction, Profteam Consultants, Daywood, Precy Construction and Cleaning, Prezy 011 and Mekan Engineering Services.
Treasury has since restricted Magwa, Profteam, Daywood, Precy, Prezy and Mekan.
Appealed
“Some of the affected service providers appealed to the National Treasury, who then lifted the restrictions. National Treasury then referred these cases back to the department, stating that the restrictions must be made in terms of the general conditions of the contract,” said Mabaso.
“The department has a restriction committee and authority (RCAA). The committee’s role is to consider all cases that are presented to it to restrict service providers who have abused the supply chain system or failed to perform on contracts.’’