City plans to kick ‘mafia’ in teeth

THE City of Cape Town has proposed bold changes to their procurement processes to block extortionists from holding up developments and is calling on the public to have their say.

This comes just months after the municipality started blacklisting companies affiliated with individuals alleged to be part of the construction mafia in the MotherCity.

Mayco member for Finance, councillor Siseko Mbandezi, said the proposed changes to the Supply Chain Management Policy propose additional measures to reduce the risk of extortion impacting City projects and will include placing individuals on a ‘Red List’.

“The City is proposing changes to its Supply Chain Management Policy to improve alignment with existing legislation and to further enhance tender process efficiency and transparency.

“Robust internal control interventions are proposed to reduce the impact of extortion on City projects.

“This includes placing any individuals assessed as high risk, who are connected to a specific tenderer, on the City’s Red List; and revoking awarded contracts, including those that are linked via subcontracting to a highrisk main tenderer, once reputational risk and harm is exposed.”

According to the draft document, if approved, the City will be able to list not only directors of companies who have defaulted on the Red List, but also other individuals associated with them.

During investigations into the construction mafia and bids made by alleged gang wife, Nicole Johnson, it was found that the municipality blacklisted not only the companies owned by her, but also those affiliated with her and husband, Ralph Stanfield.

The draft document also will empower the municipality to block individuals or companies who act as a proxy for those already on the Red List as they attempt to circumvent the legislation.

It further states that the City will reserve its right not to register subcontractors who are either “known notorious individuals” or related to them.

Mbandezi said the City is serious about protecting the infrastructure investment programme, service delivery and the development plan for Cape Town.

“Making things as hard as possible for extortionists and criminals is a focus across City operations. Extortion is a highly organised, lucrative criminal enterprise and the most vulnerable communities are impacted the most as service delivery suffers.”

The Supply Chain Management Policy is reviewed annually in accordance with the Municipal Finance Management Act Supply Chain Management Regulation.

The deadline for comments on the proposed changes is 10 May. To view the draft document, visit www.capetown.gov.za/haveyoursay