Mail & Guardian

Citizens lose out on services as

The City has dug itself into a litigious multibilli­on rand mess because it cut corners when awarding tenders for its fleet of vehicles, including fire engines

- Sabelo Skiti & Athandiwe Saba

The City of Johannesbu­rg is embroiled in a firestorm over three of its biggest fleet procuremen­t contracts, worth billions of rands, which has ignited litigation and an investigat­ion by the Special Investigat­ing Unit (SIU).

An SIU team descended on the municipali­ty on Monday as part of the unit’s investigat­ion into contracts including the three awarded to Afrirent Fleet, TFM Industries, and Avis Fleet for R1.2-billion, R500millio­n, and R295-million respective­ly. All of these contracts were awarded through deviations. The unit confirmed the investigat­ion.

A day after the SIU visit, two of the City’s senior fleet and compliance management officials, acting group head Sanjay Dubru and his acting director, Jimmy Maluleke, were asked by the City to explain their version of events — and why they should not be suspended in connection with allegation­s of impropriet­y to do with the contracts and alleged kickbacks.

The SIU also said it had completed four other investigat­ions into Kwane Capital contracts with municipali­ties in the Eastern Cape. Kwane Capital’s Mcebesi Mlonzi is the majority shareholde­r of TFM Industries.

The investigat­ions at Amahlathi local municipali­ty, Alfred Nzo district municipali­ty, Raymond Mhlaba local municipali­ty and Mbhashe local municipali­ty were initiated between 2016 and 2018.

The City of Johannesbu­rg’s spokespers­on, Nthatise Modingoane, said any visit by the SIU would be in relation to the investigat­ions on matters that are proclaimed by the president.

In March, President Cyril Ramaphosa authorised the SIU to investigat­e alleged wrongdoing in the City.

Modingoane said in response to questions about the potential suspension of Dubru and Maluleke: “We must express our displeasur­e that you seem to have accessed a confidenti­al document that was shared privately with our employees.”

He added: “We can confirm that in the light of the allegation­s that were circulatin­g on social media, the employees were requested to give their own version of events. We can also confirm that these employees are not on precaution­ary suspension.”

Allegation­s that Dubru was receiving bribes to keep the Avis contract going by using an emergency deviation process, instead of the usual procuremen­t procedures, surfaced during the weekend on the Twitter account @Advbarryro­ux. The thread featured photograph­s of two men — one of whom is allegedly Dubru — sitting at a table with wads of money on it; as well as money on a chair in an office that was described as belonging to Dubru.

The Mail & Guardian tried to contact Dubru and Maluleke for comment but had not been able to get a response by the time of publicatio­n.

The SIU’S visit on Monday followed attempts by the City to appoint Avis to provide 435 trucks for City Power, Joburg Water and the Johannesbu­rg Roads Agency’s maintenanc­e teams, as well as 72 motorbikes for the metro police.

The contract was allegedly part of the controvers­ial Afrirent contract to provide a total of 2 734 vehicles, but the City approved a request by Maluleke to appoint Avis through the emergency deviation procedure.

This was after he said Afrirent was struggling to meet its obligation­s on the contract because of a number of problems, including negative media reports, a forensic investigat­ion into the awarding of the contract, difficulty in sourcing vehicles and nonpayment of invoices by the City.

Afrirent was awarded the contract using regulation 32 of the Supply Chain Management Regulation. This allows a state entity to piggyback on the supplier’s contract with another state entity provided the parameters are similar. In this case, the City relied on Afrirent’s contract with Mogale City to provide 123 vehicles for R111-million.

In his submission, Maluleke claimed Afrirent informed the City’s fleet compliance management department in August that the trucks and motorcycle­s were not part of the contract.

According to Maluleke’s submission, sent on October 30, the City was left with no choice but to implement the emergency deviation to appoint Avis or face the possibilit­y of not being able to provide critical services delivered by City Power, Johannesbu­rg Roads Agency and Joburg Water.

“Without these vehicles, the City will not be in a position to fulfil its constituti­onal mandate and service delivery will be severely hampered,” he said in his report.

Maluleke then asked City manager Ndivhonisw­ani Lukhwareni to approve a negotiated deal with Avis to enter into a month-to-month agreement to provide the vehicles until September 30 next year at a price of R295-million.

Maluleke’s version was contradict­ed by Afrirent’s lawyers, Mesin Inc, in a letter to the City, informing them that if the City extends the contract to Avis it would interdict the award and launch a review of the decision to appoint Avis through the deviation process.

The lawyers argued that Afrirent had informed the City of Johannesbu­rg as early as January this year that trucks and motorcycle­s formed part of their client’s contract with Mogale City, and should form part of their contract with Johannesbu­rg. They said their communicat­ion was ignored.

“It has come to our client’s attention that you have issued a request for approval to deviate in terms of Regulation 36 to appoint Zeda Cars

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 ??  ?? Trouble: There is a shortage of fire engines as the high court halts City of Jo’burg’s contract. A photo on Twitter (right) allegedly shows Sanjay Dubru at a table with money on it. Photo (above): Delwyn Verasamy
Trouble: There is a shortage of fire engines as the high court halts City of Jo’burg’s contract. A photo on Twitter (right) allegedly shows Sanjay Dubru at a table with money on it. Photo (above): Delwyn Verasamy

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