More Joburg PPE tender dirt laid bare
UNQUALIFIED service providers were controversially awarded a R25 million contract for personal protective equipment (PPE) services by City of Joburg Property Company and subsequently inflated market prices.
This came to light following a forensic report into allegations of irregularities and corruption involving several municipal officials at the municipal entity.
The probe was commissioned by the City following allegations made by whistle-blowers that deepcleaning and sanitisation procurement was tainted with irregularities and corruption.
The 141-page report by Kunene Ramapala Incorporated revealed that two of the appointed companies, Omphile Turney Solutions and KM Mashigo, shared a physical address, while their counterparts, Triple SL Tech and Mizana Trading, submitted reports with striking resemblance on their respective invoice files.
“The seeming relatedness between Omphile Turkey Solutions and KM Mashigo on one hand and Triple SL Tech and Mizana Trading on the other, gives credence of the possibility of the four service providers having collaborated to submit quotations that were close to one another and all similarly way above market prices,” the report read.
The report found that Mizana Engineering and Services (Pty) Ltd acted improperly by submitting Mizana Trading (Pty) Ltd’s company documentation for their appointment and allowed Mizana Trading to deliver services and receive payments.
“For this gross misrepresentation, it is recommended that Mizana Engineering and Services ... be blacklisted from doing business with the City and its entities,” the report said.
The report found that the negotiated price of R50/m2 for deep cleaning and R26/m2 for sanitisation were higher than competitive market prices and deviated from quotations initially submitted by the companies.
The report pointed out the contracts were in contravention with the supply chain management policies and Municipal Finance Management Act as they didn’t go “through an open tender process and (for) not following competitive bidding processes by procuring services of above R200000 in value”.
The cleaning experience of the companies came into question after the Property Company found that they were “not part of a list of cleaning service providers for the entity and did not have prior cleaning experience, and also that there were cleaning companies with experience that could have been appointed”.
The report recommended that disciplinary action be taken against officials who were found wanting during the tender-awarding process.
Attempts to source comment from the implicated companies were unsuccessful.
The report found that public facilities manager, Simphiwe Mgejane should face the music for electing not to respond to interview questions that were sent to him and failing to monitor the project, “the result of which was to pay services providers more than what was budgeted”.
Similarly, the acting senior manager for supply chain management, Frans Moloto, was in hot water for electing not to respond to interview questions that were sent to him.
General manager for special projects Jay Sunker, according to the report, should be taken to task for facilitating the appointment of Mizana Engineering and Services (Pty) Ltd.
Sunker said: “Please note that I have not seen the report you are referring to, nor has my employer discussed this matter with me. I therefore can not comment.”
Senior official Nandi Zondo was also accused of the same transgression but she declined to comment, referring questions to City spokesperson Nthatisi Modingoane.
Modingoane said: “The City confirmed that the SIU (Special Investigating Unit) report has been forwarded to the delegated MMC for economic development portfolio for consideration and to the board of directors to exercise its fiduciary duties to act with the necessary skill and care in this matter.
“I am not in a position to preempt the board’s deliberations and resolutions at this stage.”
Other implicated officials were also contacted for comments but had not responded at the time of publication.