The Herald (South Africa)

Another IPTS tender scandal

Three contracts worth R100m put on hold

- Rochelle de Kock dekockr@timesmedia.co.za

THE roll-out of Nelson Mandela Bay’s bus system has again been delayed after it emerged that informatio­n regarding three tenders worth R100-million was leaked before the contracts were advertised. Infrastruc­ture and engineerin­g head Walter Shaidi said the municipali­ty was finalising specificat­ions for three tenders when it discovered that the informatio­n had been leaked to a service provider.

The three tenders were for the supply of informatio­n technology systems and radios for security.

Shaidi said yesterday officials in his department reported the matter to the internal audit department to investigat­e.

In a report to the infrastruc­ture, engineerin­g and energy portfolio committee meeting, Shaidi said: “The three tenders – two ICT (informatio­n and communicat­ions technology) and one radio tender for safety and security – with a combined value of R100-million are waiting for approval from the [bid] specificat­ion committee.

“The tenders went to the specificat­ions committee at the beginning of April 2013 but were stopped by [supply chain management] due to tender informatio­n being leaked to one of the service providers before being advertised.”

He told councillor­s: “It was a surprise when we heard that a lady had the specificat­ions of the tender that still had to be advertised. Internal audit is investigat­ing the matter to see what went wrong.”

‘ Internal audit is investigat­ing the matter to see what went wrong

This is set to delay the roll-out of the Integrated Public Transport System even further and affect the city’s spending patterns, as it awaits a response from the Treasury on whether or not it can roll over the R 293-million grant it failed to spend in the 2012-13 financial year.

About R174-million is also locked up in a lawsuit between the municipali­ty and Lumen Technologi­es, the company contracted to install display technology on the buses and to build a transport operating centre. The court case was postponed in August and a new court date has not been set.

In his report to the committee, Shaidi said the court case involving Lumen had impacted negatively on spending and delayed the building of the R100-million transport operating centre.

Meanwhile, Shaidi said seven other infrastruc­ture projects had been delayed because the tender committees did not meet often enough. Some of the tenders were delayed by about 16 months due to changes of the members who sit on the technical evaluation committee.

Some contracts are for companies to assess the condition of and to rehabilita­te sewer infrastruc­ture. Others are for the surfacing of gravel roads and upgrading the Elandsjagt water treatment works’ pumps and filters.

“The time delays between the tender being opened and the pre-evaluation is too lengthy. Subsequent to the pre-evaluation taking place ... it then requires a technical evaluation,” Shaidi said.

“This process is done by the same [bid evaluation committee] members. Officials are finding it difficult to sit for the technical evaluation of contracts due to the BEC not providing dates.”

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