KSD accused of shunning local firms in tender

King Sabata Dalindyebo municipal bosses have been blasted for appointing companies from other provinces to read electricity meters.

Municipal spokesperson Sonwabo Mampoza confirmed three companies — Ukhanyo Electrical, Zama Electrical and Ikageng Electrical — had been appointed to audit meters for three years.

However, he declined to reveal whether they were from the Eastern Cape.

Black Rage Electrical and ICT MD Loyiso Guma, whose company is one of those operating in Mthatha within KSD, said the companies were from KwaZuluNatal and Johannesburg.

He said local electrical contractors were not happy with the stance taken by the municipality to outsource a simple service.

“We have the knowledge, competence, certificates and equipment to do these inspections,” he said.

“We are registered and we pay annual fees. Are we not good enough? So KSD rather awards tenders to electrical contractors from other regions?”

He accused the municipality of flouting procurement processes, saying it looked like the companies had been “handpicked” as the tender had not been advertised as required by law.

“We stay here and pay rates here. Now they are taking money from our region to other regions.”

Guma suspected “someone” from within the municipality stood to benefit from the deal.

Mampoza said the municipality had resolved to conduct an audit of the electricity meters to try to flush out izinyoka who had been stealing electricity from KSD. They had discovered that many people tampered with their electricity meters, resulting in the municipality losing out on a lot of money.

Mampoza said the municipality had a right to do business with any company, as long as it was a South African company.

He refuted claims that the companies were handpicked, saying the tender had been advertised in newspapers and notices issued before the lockdown as per KSD’s supply chain management processes.

Though he could not say how much the three-year tender would cost the municipality, he said it ran into millions of rand.

Eastern Cape Chamber of Business president Vuyisile Ntlabati said they have always called on municipalities to ensure 30% of the work was allocated to local businesses as stipulated by the government.