Hawks asked to investigate R1m festive spending

AN EASTERN Cape municipality spent close to R1-million on a single Christmas tree and some Christmas lights which should have cost only about a third of the price.

The Hawks have now been asked to investigate this and other dodgy transactions amounting to about R5-million which have allegedly been paid out since September at the embattled Mnquma municipality, based in Butterworth.

This includes a charge of R103 000 for 500 cable ties at R206 each.

Yet a pack of 50 cable ties costs about R90 – or R900 for 500.

In a letter from municipal attorneys to the Hawks, seen by Times Media, the elite crime-fighting unit has been asked to investigate transactions that were allegedly entered into without proper processes being followed.

Mnquma spokesman Loyiso Mpalantshane said reinstated municipal manager Sindile Tantsi was behind the matter being reported to the Hawks.

According to correspondence dated January 11, the alleged dodgy transactions took place after Tantsi was placed on suspension on September 30.

This was while provincial government-deployed administrator Zonwabele Plata acted in the position.

The transactions reported to the Hawks include:

ý The alleged illegal appointment and payment of a security company to the value of R481 380;

ý The procurement of Christmas lights and a tree to the value of R969 955;

ý The alleged irregular payment of legal fees amounting to more than R3-million; and

ý Irregular expenditure of more than R635 000 on procurement of services and vouchers for municipal performance awards.

The security company was allegedly appointed in the wake of violent political and administration clashes after the new council was sworn in in August.

The legal fees were paid for numerous court battles emanating from Tantsi’s suspension, which has since been reversed by a court.

The transaction relating to the payment of nearly R1-million for a six-metre Christmas tree and a few festive lights in Butterworth and two other towns included a charge of R103 000 for 500 cable ties.

Siyavuya Construction, the service provider paid the money, was not present at the tender briefing and admits to being “headhunted” to submit a quotation a week before being awarded the tender.

The company is owned by Dutywaborn Thobela Stofile, who has carried out other large electrification projects in rural municipalities in the province.

Siyavuya was paid R969 955 for the tree at Butterworth and for festive season lights there and in Centane and Ngqamakwe.

The owner of an Eastern Cape company, who spoke on condition of anonymity, said he would not have charged anything more than R350 000 for the job.

It is understood that the initial budget was R400 000 to cover the three Mnquma towns.

However, sometime before being awarded it was increased.

According to documentation, tender processes were allegedly authorised by Plata, who refused to comment when contacted yesterday.

Attempts to get comment from the Hawks were unsuccessful.