Two Cape Town construction firms probed for tender graft

THE Directorate for Priority Crime Investigation (Hawks) is in the process of investigating cases of tender corruption at the City of Cape Town after the discovery of hefty payments made to two local construction companies for the maintaining of small projects.

Independent Media’s investigations unit learnt how costs were inflated and paid to two companies despite cheaper offers being made to the City for the same tenders.

The companies will not be named because of unsuccessful attempts to locate the two companies at the telephone numbers provided.

There are also no visible websites or social media pages related to the construction companies.

One businessman, who offered lower and reasonable costs for a threeyear tender to maintain several sites in 2018, including a play park in Gugulethu, now wants the City and the companies to be held accountable for corruption and wasteful expenditure.

When the businessman discovered that the companies were paid in full with little to no work done, he immediately tasked the City’s audit department to investigate.

“I had offered, on one of the sites, among others, to remove an old rusted play park, to clear up the space and to replace it with a brand-new structure.

“Everything on the playground would have been brand new for only R13 000, despite the City only wanting minor damages repaired.

“However, the City decided on a (an alternative) stinking offer of R113000, which was not even for a new play park, but instead to only fix up minor damages on the rusted structure, and they were – unbelievably – paid for it,” he said.

He said that another order was also made out to a previous tenderer for hard surfacing to the value of R120 000 and was paid in full without a stitch of work done.

“The sad part about this issue is that while my offer was rejected, this company was chosen and paid by the City, and to date never even completed the project, yet no one has been brought to book,” he said.

Upon doing research on how much the companies had quoted for the projects, the source discovered that the City had approved inflated quantities and duplicated repair lists to increase order values, which amounted to extravagant amounts being paid.

“It’s clear from the list of work requested that they charged unnecessary items and similar items numerous times to increase the value, which amounts to millions of ratepayers’ money while the City turns a blind eye to the alleged corruption.”

Despite promising feedback on the matter, the City still has not responded to the complainant with positive feedback since their last communication earlier this year.

Riaan Delport, senior forensic officer for the City’s forensic services department, had on January 15 written to the complainant via email stating: “The City manager has authorised an investigation into the confidential report that had been provided to the Hawks.”

The complainant had confirmed with Delport that part of the information he handed to the Hawks was pointed out to the City’s forensics department more than a year ago and questioned how these projects continued even though the matter was reported.

“These things have been made known to the City over a period of time and nothing was ever done about it.

“The one matter that they decided to investigate came back with dismal results,” the complainant said.

While the Hawks confirmed that it was investigating the matter and that investigation was ongoing, Luthando Tyhalibongo, spokesperson for the City, said the complainant’s allegations formed part of a larger investigation that was being actively investigated.

“It can, however, be confirmed that the investigation in respect of one of the allegations … has been finalised.

“Disciplinary processes are under way and a process is being followed involving the municipal public accounts committee (MPAC),” Tyhalibongo said.

“MPAC is tasked, among others, with investigating the recoverability of unauthorised, irregular or fruitless, and wasteful expenditure in terms of section 32 and 102 of the Municipal Finance Management Act No 56 of 2003.

“The above demonstrates the City’s commitment to combating fraud and corruption, and that matters of this nature are taken seriously.”