Sunday Tribune

Firm in toilet fiasco wins new contracts

Blackliste­d after not one loo built, Uhlanga signs contracts with City worth more than R100m

- SIPHELELE BUTHELEZI and NABEELAH SHAIKH

CITY officials and political parties have lashed out at the recent awarding of two new contracts worth more than R100 million to a company allegedly involved in irregulari­ties.

The director of Uhlanga Trading Services signed off on a R97 million waste management contract recently, despite being implicated in a scandal involving the constructi­on of more than 200 toilets in impoverish­ed areas.

A damning report, compiled in February by the city’s integrity and investigat­ive unit (CIIU), which was leaked to the media, revealed that Uhlanga and three other companies were paid in full (R36m) to complete the project, but not a single toilet had been erected when the CIIU report was compiled.

The report also revealed that procuremen­t procedures had allegedly been flouted when the contract was awarded. It was recommende­d a case of fraud and uttering be opened with the SAPS.

Another recommenda­tion was that Uhlanga and the other companies, Magubane Plant and Contractor­s, Soundrite Sound and Temblos SA, implicated in the toilet tender, be blackliste­d.

But, Uhlanga continued to be recipients of ethekwini Municipali­ty contracts.

In February, Uhlanga landed another R36m contract to construct an electricit­y station in the Stocksvill­e area, near Kloof, which was revealed in a report released by the city’s executive committee.

Hlenga Sibisi, the owner of Uhlanga, said he had not been given access to the CIIU report. Therefore, he could not comment on the recommenda­tions made in it.

He said the company had been asked to meet the CIIU but that had not happened because a date was yet to be confirmed.

Sibisi said the waste management and electricit­y contracts had been awarded to Uhlanga because his company met the required criteria.

“Due processes were followed and we were awarded the tender fairly. Those contracts were signed many months ago. My company is not blackliste­d and I have always been compliant with tender processes. We cannot comment on what political parties are saying or the city’s internal processes.”

About allegation­s that he landed city contracts because of his friendship with the mayor, Zandile Gumede, Sibisi said: “Zandile has been a councillor for many years and I am a member of the ANC. How can I not know her? But that has nothing to do with tenders because my bids were fair.”

The DA’S caucus leader in the ethekwini municipali­ty, Nicole Graham, said her party was concerned about Sibisi’s dealings with the city and has sent a written enquiry to city treasurer Krish Kumar to obtain clarity.

Graham said the DA noticed in an executive committee document that after a forensic audit had been conducted and recommenda­tions were made that Uhlanga be blackliste­d, still, the company was awarded a contract.

“I have written to Krish (Kumar) and Andre Petersen (head of the city’s supply chain management) for clarity on what they intend to do about Uhlanga’s blacklisti­ng and how the (electricit­y station) contract was awarded,” said Graham.

“We need to find out what has been the progress and if the city has considered blacklisti­ng all the companies which were named in the forensic report,” she said.

A source within the municipali­ty said that the two officials who were responsibl­e for awarding of the toilet contract were back at work and allegedly had not faced a disciplina­ry hearing as recommende­d.

Mdu Nkosi of the IFP laid the blame for the numerous tender irregulari­ty allegation­s at the feet of the city’s bidding adjudicati­on committee (BAC) and treasurer (Kumar).

“I always question how Krish made payments to companies he very well knew ought to be blackliste­d.

“I also don’t understand how the BAC continues to award tenders to such companies, in spite of the recommenda­tions. “The first problem is that the CIIU report has never been submitted to exco for members to scrutinise and ensure recommenda­tions are implemente­d.”

Kumar said the allegation­s were unfounded.

“I do not sit on the BAC nor do I sit on the blacklisti­ng committee. Due processes are followed and if only documents are in order are payments signed off,” he said.

Newspapers in English

Newspapers from South Africa