ADM manager should pay back Siyenza money

This week’s release of the public protector’s report on the Siyenza toilet scandal may constitute a poor second prize for those who hoped the stench of this disgusting saga would be ameliorated by holding to account all those who were party to the raiding of the coffers of the Amathole district municipality, possibly including political heavyweights. Among various findings, PP Busisiwe Mkhwebane held that former municipal manager Chris Magwangqana’s dealings in the tender payments were dishonest and improper.

However, she could not find evidence of political influence behind the awarding of the contract.

That might have been first prize – a finding that would have held accountable those wielding political sway over a municipal process.

The Dispatch published extensive reports in 2015 on how the ADM awarded a R631m contract to Siyenza to build 66,000 toilets, without following due process and after the tender had already been awarded to four other entities.

At the time, Siyenza was neither registered as a company, nor did it hold construction industry accreditation, effectively rendering it incapable of legally provide the services for which it was appointed.

The grant due to the ADM for the delivery of the toilets had also not been transferred to the municipality. To crown it all, precious few toilets were being delivered.

But, none of these factors stopped the ADM from paying over R94m to Siyenza in two tranches, with a further R9m being paid even after the municipality was told that Siyenza was being probed for fraud in the Northern Cape.

Mkhwebane wants the Hawks to investigate whether any crime was committed in the process.

She also wants ADM within 120 days to recover directly from Magwangqana the public funds wasted as a result of the irregular expenditure.

Mkhwebane asks whether the municipality would have acted as carelessly if the beneficiaries of the tender were ordinary citizens with the same credentials but without political links.

We agree with her. The fact that such care and diligence were absent from the process suggests a grand scheme was in play to manipulate supply chain measures to benefit politically connected individuals. But this remains to be proved.

Public protector unable to find evidence of political connections to illegal toilet contract