UPROAR OVER BCM TENDER PROCEDURE

‘Selection committee’ dishes out lion’s share of contracts to four firms

A controversial “selection committee” has dished out more than R270m in tenders to handpicked companies in Buffalo City Metro in just three months.

While the selection committee — which was never approved by the council — was meant to distribute tenders equally to companies on the municipal database, the lion’s share of the money paid out between April and June, R140m, went to four companies. The four companies have not been named because they could not be contacted at the time of writing.

Thirty-six other companies shared tenders worth R136m. City manager Andile Sihlahla appointed the selection committee without the knowledge of council — a move that has angered councillors, with some even labelling it as illegal at a heated council meeting in July.

R270m was paid to companies for patching potholes, bush clearing, sanitation work and hiring of equipment. Before Sihlahla appointed the selection committee, the city’s supply chain management was responsible for tenders.

Councillors said there was no need for an “illegal” committee as the supply chain had a specifications committee, a bid evaluation committee and a bid adjudication committee.

The documents seen by the Daily Dispatch show how the four companies scored between R19m and R64m each, over a three-month period. Other companies doing business with the metro sounded the alarm, saying it was unfair that only four companies were seemingly preferred — prompting the municipality to rope in Makhanya Attorneys, who were appointed to seek a legal opinion on the matter. Ratepayers paid R103,000 for the legal opinion, which is expected to be tabled as a confidential item at a council meeting this week.

While taxpayers parted ways with R270m in tenders, BCM roads unit temporary workers said the companies’ work was shoddy and characterised by poor workmanship.

Zoliswa Xakalashe of Mdantsane’s ward 21 said she has been a temporary worker with BCM for seven years.

“These companies come, get their millions and we continue fixing and patching these potholes,” said Xakalashe.

Another temporary worker, Yanga Komi, agreed. “They must employ us and we will do the work. The millions paid to these companies must create jobs, not enrich a few individuals,” she said.

A BCM supply chain management source who asked for anonymity for fear of being targeted, said: “We’ve never seen this happening before. Andile [Sihlahla] should stop this as it will lead to war. A selection committee picks its own choices and if you are not in its political faction, your company will lose out.”

City spokesperson Samkelo Ngwenya said the rationale behind the selection committee was “to manage allocation of work equitably”.

“These service providers are already appointed and have gone through the institution’s independent bid committees,” Ngwenya said, without explaining why only four companies benefited the most.

Ngwenya declined to comment further, saying the item would be discussed in council this week.

“But I would caution against parading the credibility of a company through rumours.”

Emotions ran high when questions were raised over the selection committee’s legality at a July council meeting, with divisions laid within the ANC caucus laid bare. Some councillors wanted an investigation into the selection committee as council had never given it the thumbs-up, but mayor Xola Pakati said a legal opinion should first be sought.

Chaos broke out when deputy mayor Zoliswa Matana said all activities of the selection committee should be stopped while they waited for the legal opinion.

These service providers are already appointed and have gone through the process