Weekend Argus (Saturday Edition)

Gigaba critical of waste project

6 Finance Minister lambasts Drakenstei­n Municipali­ty over key flaws

- NOLOYISO MTEMBU

DRAKENSTEI­N Municipali­ty has been chastised by the National Treasury and ordered to begin a multi-million rand tender process for its waste-toenergy project from scratch. The instructio­n comes after the original process was found to be critically flawed.

The municipali­ty acknowledg­ed it did not comply with the Municipal Finance Management Act, the Municipal Public-Private Partnershi­p and the Supply Chain Management Regulation­s when it sought condonatio­n.

Finance Minister Malusi Gigaba told the municipali­ty in a letter in December the fairness of the tender process was compromise­d and procuremen­t regulation­s were breached.

“I have, therefore, reviewed the reasons provided by the municipali­ty for the non-compliance and advised that there was insufficie­nt motivation to warrant a favourable considerat­ion of this matter. The applicatio­n is therefore not approved,” the minister wrote.

Previously, Weekend Argus reported that the municipali­ty’s project, earmarked for constructi­on in Wellington, had come under criticism from local business and community members who questioned its tender process and its impact on the environmen­t and human life. The project involves burning waste and conversion of produced energy into electricit­y. But business and activists in Wellington slammed the municipali­ty’s bidding process.

The Wellington Associatio­n Against the Incinerato­r spokespers­on Keith Roman said they were seeking judicial review on the matter. Roman said the municipali­ty was “bulldozing” the incinerato­r project without considerin­g other options including waste reduction and recycling.

Another issue raised by the associatio­n was how the municipali­ty first called for proposals and then midway through the process adjusted the requiremen­ts to include shortliste­d bidders having to conduct feasibilit­y studies for the project and to take on the Wellington landfill site.

In his letter, which Weekend Argus is in possession of, Gigaba lambasts the municipali­ty for failing to conduct a feasibilit­y study before inviting proposals from service providers.

“Due to this failure, the municipali­ty was necessitat­ed to amend the initial terms of reference to require service providers to also conduct the required feasibilit­y studies,” the minister wrote.

“This was a critical flaw which ultimately compromise­d the procuremen­t process.

“Please remedy the situation by either starting the whole process afresh or, consider appointing a different service provider,” Gigaba wrote.

However, the executive director for engineerin­g services in the municipali­ty, Dirk Hattingh, said the fact that the condonatio­n applicatio­n was declined did not carry much weight. “The refusal, however, does not set aside any decision or agreement. The refusal also does not question the need, merits or sustainabi­lity of the project,” Hattingh said.

“National Treasury has further provided various options to take the project forward, in a new, or its current form. As a responsibl­e municipali­ty, Drakenstei­n must continue to seek a sustainabl­e solution for all our residents,” said Hattingh.

Asked how much the pro- ject was worth, Hattingh said a definite value could not be determined at this stage. “It is estimated that a project of such a nature carries a private sector investment value of approximat­ely R1 billion. This cost will not be invested by the municipali­ty but by the private sector. The private investment will make the cost of waste management affordable for the taxpayer and environmen­tally sustainabl­e,” Hattingh said.

noloyiso.mtembu@inl.co.za

 ?? PICTURE: AYANDA NDAMANE/ANA ?? The bidding process of the waste-to-energy project of the Drakenstei­n Municipali­ty in Wellington has to start again.
PICTURE: AYANDA NDAMANE/ANA The bidding process of the waste-to-energy project of the Drakenstei­n Municipali­ty in Wellington has to start again.

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