Agency defends tender linked to fraud accused
No legal reasons for not awarding Gauteng firm multimillion BCM temporary housing project
The Housing Development Agency (HDA) on Friday defended its decision to appoint a Gauteng-based company with links to controversial tender tycoon Edwin Sodi for a multimillion-rand temporary housing project in Buffalo City Metro (BCM), saying the appointment was above board.
The national human settlements department’s agency said there were no legal reasons preventing them from giving NJR Projects the BCMproject earlier this year to provide 1,100 temporal structures in Mdantsane.
On Friday it was revealed that Sodi was linked to the project by virtue of a 50% shareholding in NJR, which is responsible for the erection of temporary structures as part of the Duncan Village de-densification programme.
Sodi, who is out on R500,000 bail, is accused of fraud and corruption relating to a R255m asbestos audit tender in the Free State, along with six others.
The Blackhead Consulting mogul has already had assets worth more than R300m seized by the NPA’s Asset Forfeiture Unit.
Sodi could not be reached for comment on Thursday or Friday and NJR Projects failed to respond to questions sent on Thursday.
Even though a company search showed that Sodi had resigned as the director of NJR Projects, several business people who spoke to the Dispatch anonymously this week said he was still very much involved in the company. They also claimed it was through his close political connections that the company had won the lucrative tender.
However, HDA spokesperson Katlego Moselakgomo on Friday refuted this claim, saying the company had been selected from more than 230 other bidding companies, and that all procurement processes had been followed to the letter.
“With regards to the temporary residential units, the HDA invited proposals from alternative building technology service providers and invited more than 234 companies to bid.
“Several options, including stackable containers — which would have been quicker to provide — were considered. However, the cost was too high, ranging between R89,000 and R233,000 and more.
“A solution was found using an alternative building technology, which met the housing code specifications at R64,000,” he said.
Moselakgomo said: “The appointment of NJR Projects was made in terms of the Preferential Procurement Policy Framework Act, 2000, which states that a tender must be awarded to a tenderer who scored the highest total points.
“Proposals were received from prospective service providers and a technical evaluation process was conducted to assess the capacity and capability of the bidders.
“NJR Projects scored the highest points during the technical evaluation process and was thus appointed for this project.
“It is important to note that at the time of appointing NJR, there were no legal reasons known to the HDA that would have impeded this appointment. The appointment was made in line with all the supply chain management procedures and all the legal prescripts required for appointing a service provider. ”
BCM mayor Xola Pakati said on Friday that his council had nothing to do with the appointment of NJR Projects. The city only provided the project with land and services.